Editor’s Note
This article is the second in a series examining the pandemic’s impact on the global watch industry. It explores the unprecedented cancellation of major Swiss watch fairs in early 2020, a pivotal moment that accelerated long-term changes in how brands connect with consumers and media.
The previous part covered the fluctuating market prices for Rolex in Japan due to the COVID-19 pandemic. Of course, this impact was not limited to Japan; it also significantly affected the Swiss watch industry, where Rolex is headquartered. In this second part, we will discuss the major developments in the Swiss watch industry during March and April.
Two major watch fairs were scheduled for late April this year: Baselworld, the world’s largest annual jewelry and watch fair held every spring, and Watches & Wonders Geneva (formerly SIHH), organized by the Richemont Group. However, both were canceled to prevent the spread of the novel coronavirus.
In essence, the coronavirus wiped out the most important watch fair schedules for the Swiss watch industry to kick off the new year. These fairs are not merely venues for announcing new products; they are crucial annual events for the industry, serving as key platforms for negotiations with international buyers on new models. Therefore, the impact of this cancellation on the Swiss watch industry is immeasurable.
Initially, Baselworld was postponed to January 2021 rather than canceled. However, a significant industry development forced its eventual cancellation.
This development was the announcement by the so-called “Big Five”—Rolex (and Tudor), Patek Philippe, Chopard, and the LVMH Group (including TAG Heuer, Hublot, and Zenith)—that they would not participate in Baselworld. This group, along with the Swatch Group (Omega, Breguet, etc.), which had already withdrawn in 2019, had long been the core supporters of the fair.
Furthermore, within just two months from March to April, the situation escalated shockingly, with several brands even announcing plans to organize their own independent fairs in 2021. In a sense, the pandemic threatened the very existence of Baselworld, a historic event with over 100 years of history (72 years as a watch fair since 1917). Whether it will actually be held around March next year remains uncertain.
Meanwhile, another serious situation occurred that is believed to have significantly impacted the Japanese Rolex market: the closure of all Rolex manufacturing facilities in Switzerland—Geneva, Bienne, and Crissier—due to the coronavirus.
The initial 10-day factory closure starting March 17 ultimately lasted considerably longer. This period likely saw not only a halt in production but also a complete stop in supply. The recent price surge for sports models is probably not unrelated to this impact.
While Rolex had announced in April that it would postpone the launch of its 2020 new models, overseas watch news sites began circulating information in July suggesting that new models might be announced on September 1st. There is indeed a sense of movement, as Tudor released a new model (albeit just one) on July 1st.
Given the high expectations for model updates of popular lines like the Submariner in this year’s new releases—as highlighted in the ongoing “Model Change Candidates” series in this Rolex Report—the anticipation is quite significant.
