Story Highlight
– Luxury watch prices have soared due to rising costs.
– Demand drops for most Swiss watchmakers, only luxury brands stable.
– Rolex and Omega prices have doubled in real terms.
– Swiss industry grapples with affordability amid squeezed living standards.
– Major watch groups need reform to ensure long-term viability.
Full Story
The recent surge in prices for luxury Swiss watches, particularly iconic brands like Rolex and Patek Philippe, has sparked considerable discussion among industry analysts and consumers alike. Many executives from the industry argue that these price increases reflect escalating costs associated with raw materials, labor, and advanced technology, as well as the strong Swiss franc. Nevertheless, an underlying sentiment suggests that consumers may be reaching their limit with these rising costs.
While certain powerhouse brands seem to maintain robust demand, many other Swiss watch manufacturers are struggling to replicate past performance. According to figures from the Federation of the Swiss Watch Industry, exports of Swiss watches fell to 14.6 million units in 2025, down 2.3 million from the previous two years, indicating a stagnant market in 2023.
Consumer affordability is becoming a central issue, particularly as many households face financial constraints. To contextualise this, it is essential to examine how the perceived value of these timepieces has evolved over the decades, especially for those outside the top income brackets.
Historically, a Rolex DateJust or Oyster Perpetual in steel was priced between £220 and £280 in the mid-1970s, a period marked by average UK earnings of approximately £2,700-£2,900. This meant acquiring such a watch would take up a modest portion of one’s annual salary, around 8-10%.
In contrast, an Omega watch during the same period cost about £120-£180, corresponding to about 4-7% of an annual income. While both brands occupied the premium market segment, true luxury was typically reserved for gold or diamond-studded models.
Fast forward to 2026, and the landscape has transformed dramatically. Average UK earnings now stand at £39,000 a year—14 times higher than in the 1970s—while the prices for Rolex has experienced a staggering jump, now ranging from £6,200 to £7,200. This shift indicates that a watch that once equated to one month’s salary now demands two months’ worth.
Similarly, Omega’s entry-level offerings have increased to between £5,000 and £7,000, now representing 13-18% of an average worker’s annual income, substantially greater than the 1975 prices when adjusted for inflation.
It raises questions about whether the substantial price hikes are justified by improvements in quality and reliability. Although there has been significant investment in research, development, and watchmaking skills over the decades, experts express mixed views about the actual enhancements in product quality. Marcus Margules, a veteran in the industry, argues that the overall finishing of watches has actually declined, despite advancements in precision.
Accuracy ratings have improved; Rolex watches now guarantee an accuracy of -2/+2 seconds per day, a notable upgrade from the 1970s standard of -4/+6 seconds per day. Omega has similarly enhanced its standards to the Master Chronometer certification, offering between 0 and +5 seconds per day. Additionally, technological innovations have led to increased durability and longer service intervals, yet these enhancements have not prevented inflated prices.
Contrastingly, brands like Timex and Seiko have managed to keep their pricing relatively stable over the decades, with mechanical Timex watches averaging around £200 now—equivalent to only two days’ wages. Seiko 5 models are similarly affordable at approximately £300.
To address dwindling demand, Swiss watchmakers have curtailed production while simultaneously raising prices, resulting in a precarious situation. The industry has relied heavily on a furlough scheme, known as Kurzarbeit, initiated in 2024, aimed at safeguarding jobs during downturns. This support is not without its critics; many question whether this approach merely sustains inefficient businesses that may never recover.
The cost of this scheme, which offered an average of CHF 50,000 per employee per year, may ultimately contribute to rising prices for consumers. Major groups, including Swatch Group and Richemont, continue to struggle with profitability despite these measures.
Further complicating the landscape, many watch components are now manufactured in Asia, with only a fraction of production required to meet “Swiss Made” standards. The current guidelines seem outdated and might benefit from reform to better reflect quality rather than merely an arbitrary location.
Retail margins also remain high. Though leading brands like Rolex have reconsidered their pricing structures, substantial markups persist, particularly in boutique retail environments, which often operate at a loss.
The ongoing crises faced by some watchmakers suggest that the industry requires a shift—a call for action that might involve allowing underperforming companies to exit the market. Without such measures, the health of the broader Swiss watchmaking sector remains at risk.
Despite looming challenges, the ongoing prestige of Swiss luxury watches is not inherently doomed; however, a reevaluation of pricing strategies could pave the way for a more viable future. By suspending price increases while adjusting for market realities, Swiss manufacturers could reclaim consumer confidence, ensuring sustainability moving forward.
