Story Highlight
– Swiss watch exports decline for second consecutive period.
– Frédérique Constant shows double-digit growth in specific price range.
– Gallet relaunches under Breitling, targeting mid-range market.
– Industry shift from premiumisation to customer acquisition observed.
– Movement ownership becomes key factor in market dynamics.
Full Story
Swiss watch exports are experiencing a downturn for the second consecutive period, as reported during the Geneva Watch Days. However, many industry leaders and retailers are observing a different trend marked by renewed sales volume and a heightened appreciation for value, suggesting a shift in the market dynamics after a prolonged focus on luxury segments.
Frédérique Constant, part of the Citizen Group, has noted substantial growth, particularly for watches in the CHF 750 to 3,000 price range. Similarly, the brand Gallet has made a noteworthy comeback under Breitling, strategically placing its new offerings within the CHF 2,500 to 4,000 range.
The narrative emerging from these developments points to a peak in premiumisation, with brands seemingly moving towards a more accessible market. Nonetheless, this perspective may overlook critical aspects of the underlying structure of brand ownership within the industry.
Examining who is driving this resurgence reveals that both Frédérique Constant and Gallet are not independent brands but rather entities owned by larger conglomerates. These firms are strategically positioning lower-priced products to cultivate customer interest, ultimately aiming to guide them toward more expensive luxury items within their portfolios. This strategy reflects a focus on customer acquisition rather than a true democratisation of the market.
The current market landscape shows that although volume shifts are occurring in the CHF 750 to 4,000 tier, this does not indicate a widespread revival of independent mechanical watch brands. Instead, it signifies a strategic recalibration by conglomerates after a period of neglect toward entry-level offerings.
Key figures from the Swiss watch industry indicate export values of CHF 12.8 billion in the first half of 2026, reflecting a 0.7% decrease year-on-year. In comparison, the total export value for 2025 stood at CHF 25.6 billion, a decline of 1.7%, with a notable 4.8% drop in volumes. During the Geneva Watch Days, 71 brands participated, showcasing the industry’s attempt to recover, particularly in the entry-luxury category.
A significant factor influencing the market’s competitive landscape is movement ownership. Between 2013 and 2020, Swatch Group’s ETA was compelled to restrict its supply of watch movements to third-party brands, resulting in Sellita gaining a substantial market share as an independent movement supplier. This regulatory shift fundamentally altered the industry’s competitive dynamics.
Brands capable of establishing their own movement manufacturing capabilities have developed a protective barrier that independent brands, relying on shared movements, cannot replicate. This division is anticipated to shape the industry through 2030 and will not be confined strictly by pricing.
Looking ahead, the distinct advantage of brands with in-house calibre production is expected to result in greater long-term value retention and brand equity. This trend contrasts sharply with brands that depend on external movement sources, which may struggle with price competitiveness regardless of their market segment.
While the positivity surrounding entry-level volume increases is palpable, it is crucial to recognise the underlying structural realities that may lead to increased market polarisation in the years to come. Rather than indicating a healthier marketplace for mechanical watches, the recent growth appears to be a product of strategic repositioning within conglomerate-owned brands.
The current narrative surrounding these developments may divert attention from the essential question: which brands will maintain control over their own movement production by 2030, and which will continue to depend on external sources? This pivotal differentiation is likely to define the future trajectories of brands in the Swiss watch industry.
In summary, while the entry-tier watch segment shows promising signs of recovery, the implications of ownership dynamics and movement sourcing present a more complex outlook for the future of the luxury watch market.
