Story Highlight
– Swiss watch industry faces trust issues with consumers.
– Exports show significant decline in recent years.
– Younger buyers prefer informed decisions over brand loyalty.
– Independent watchmakers gain popularity amid market shifts.
– Retailers must adapt to new consumer knowledge and trust.
Full Story
The Swiss watch sector faces an unresolved challenge, which industry insiders are hesitant to confront openly. This issue is not due to tariffs, market conditions in China, the soaring price of gold, or even the impact of currency fluctuations. These factors are merely symptoms of a deeper-rooted concern: the Swiss watch manufacturers have, over the past decade, inadvertently fostered a climate of distrust among their clientele.
As a result, an emerging generation of consumers is now responding accordingly.
Current industry statistics reveal a troubling trend. Data from the Federation of the Swiss Watch Industry indicates total exports in 2024 reached CHF 26.0 billion, reflecting a 2.8% decrease in value and a substantial volume drop of 9.4%, marking the most significant decline since the post-financial crisis recovery. This downward trajectory continued into 2025, with an additional 2.2% drop by November. Despite these alarming figures, the industry’s narrative persists in promoting a facade of optimism, citing resilience within the luxury market’s ultra-high-end sector and a surge in demand from the Middle East.
However, beneath this optimistic outlook lurks a less palatable reality: the downturn is not uniform across all segments. It primarily affects the CHF 3,000-and-above price category, which saw an 8.1% value decline in January 2026, whereas the mid-tier CHF 500–3,000 range experienced a remarkable rise of 17.7%. The market’s focus is shifting rather than contracting; informed consumers are redirecting their interest toward other avenues.
One key figure observing this shift from the forefront is Eugene Tutunikov, CEO of SwissWatchExpo in Atlanta. He notes a pronounced change among younger buyers: “The 20–30 crowd is taking over. They don’t want to wait until they’re 40 to buy something meaningful. They want their first real watch now.” This demographic shift represents one of the most significant changes the watch industry has encountered in three decades, fundamentally altering the landscape of luxury watch valuation.
This new generation is equipped with real-time information about market prices, enabling them to make informed decisions rather than approaching purchases as aspirational consumers. They understand depreciation curves and are knowledgeable about which watch references maintain value and which diminish rapidly after launch.
Tutunikov emphasizes that the major Swiss brands must recognize the consequences of their past strategies during the economic boom of 2020-2023, when they prioritized immediate profit by aggressively raising prices and restricting supply while permitting grey market channels to proliferate. This had the unintended consequence of disassociating retail prices from actual market values, eroding the perceived integrity of brands.
As a result, the value proposition of luxury watches has shifted, disadvantaging established groups and favouring independent artisans. Notable independent brands like F.P. Journe, H. Moser & Cie, and MB&F, once confined to the whispers of collectors, are now claimed by younger buyers who view these watches as valuable investments.
Leon Adams, founder of Cellini Jewelers, highlights that the demand for scarce products has surged, with independent brands offering genuine scarcity rather than artificial limitations. Retailers that harness their expertise and build authentic relationships with clients will thrive, especially since the pre-owned market is estimated to be worth around $30 billion and serves as an essential avenue for gaining customer loyalty.
In light of these developments, the industry must facilitate a renewed commitment to price integrity, recognising that the old practices no longer serve its best interests. The culture of competing for customer loyalty through mere access to products must shift toward showcasing expertise in horology and market trends. Additionally, the significance of independent watchmaking cannot be overlooked and should be embraced as a crucial segment rather than a niche.
The current state of the Swiss watch industry should not be seen as a decline, but rather as a critical sorting process. Companies, retailers, and market players who grasp that contemporary consumers possess conditional loyalty, contingent upon consistency between marketing and product integrity, are likely to emerge from this transition stronger. Those who misinterpret the declining export figures as a momentary setback risk long-term consequences.
Ultimately, today’s watch buyers are more informed and purposeful than any previous generation. The onus is now on the industry to evolve in order to foster a future that aligns with the expectations and values of this new consumer base.
