The Swiss Luxury Watch Industry in 2024: A Year of Consolidation and Strategic Change

In 2024, the Swiss luxury watch industry experienced a period of consolidation, characterized by a slight decline in exports and significant market polarization. According to the Federation of the Swiss Watch Industry (FH), exports fell by 2.8% compared to 2023, reaching a total of CHF 26.0 billion.
This decline came after three consecutive years of growth.

Market polarization and dominance of key players

The 2024 Morgan Stanley and LuxeConsult report highlights the growing polarization in the industry. The “big four” – Rolex , Patek Philippe , Audemars Piguet and Richard Mille – have collectively captured an impressive 47% market share, up significantly from 36.8% in 2019. Rolex itself has strengthened its dominant position, with an estimated turnover of more than CHF 10.5 billion.
This concentration indicates that while the top brands continue to thrive, many second-tier brands have experienced significant sales declines. This is a trend worth watching, as it could lead to market monopolization and the disappearance of smaller brands. Interestingly, it was mainly independent brands that recorded growth, while groups such as Swatch, LVMH and Richemont in the report below mainly show declines.

Regional market dynamics

Geographically, the industry has had mixed fortunes. Exports to China and Hong Kong have seen significant declines, down 25.8% and 18.7% respectively. The United States, on the other hand, has solidified its position as the leading export market for Swiss watches, posting a 5% increase over 2023, reaching a total of CHF 4.4 billion. Japan has also shown strong growth, with exports up 7.8%, taking it to the third largest market. Europe seems to be a stable part of the market, with Italy, Germany and France all showing similar results to last year.

Outlook for 2025

Looking ahead, the industry’s performance in 2025 will largely depend on economic developments in key markets, particularly China. While uncertainty remains high, there is cautious optimism that the decline may be less pronounced. Brands are expected to continue to focus on their high-end segments and may adjust their strategies to address the challenges facing mid-range markets.

In summary, 2024 was a year of consolidation for the Swiss luxury watch industry, characterized by market fragmentation and a focus on the most expensive watches. The ability of brands to adapt to changing market dynamics will be crucial to meeting the challenges and opportunities that will arise in 2025.