Editor’s Note
Swiss timepieces have long transcended their functional purpose to become global icons of heritage and precision. This article explores how centuries of craftsmanship have cemented their status as a national symbol, resonating with consumers worldwide, including in China.
Swiss watches are certainly no stranger to Chinese consumers. For centuries, with the excellent inheritance and continuous improvement of manufacturing craftsmanship, Swiss watches have become a symbol of the country, exported worldwide and renowned across the globe.
Just yesterday (the 18th), the Federation of the Swiss Watch Industry (FH) released news stating that Swiss watch exports in July grew by 8.3% year-on-year to 2.2 billion Swiss francs (approximately 15.6 billion Chinese yuan), reaching the highest level since October 2014. Demand for brands like Rolex, Omega, and Patek Philippe remained strong among some consumers.
Data shows that in the first half of 2022, Swiss watch industry exports reached 11.9 billion Swiss francs (approximately 84.3 billion Chinese yuan), an increase of 11.9% compared to the same period last year. Of these, 70% were watches made of precious metals or fine steel. Watch exports increased significantly, with the Asian market accounting for half of Swiss watch exports.
In the “Watch Kingdom” of Switzerland, tourists often joke that there are more luxury watch shops on the streets than grocery stores. Just as women love handbags, many of the world’s wealthy are also fond of buying top-tier Swiss watches. Computer-aided design, increasingly powerful multi-axis CNC machine tools for high-precision processing, and the application of high-tech materials have attracted numerous ultra-wealthy individuals, pushing the Swiss high-end watchmaking industry to greater heights.
These extraordinary watches cost at least 100,000 Swiss francs (approximately 700,000 Chinese yuan), but as a more mass-market consumer, one might be more concerned about whether they can buy an economical and practical smartwatch. So, have smartwatches caused a serious impact on traditional Swiss watches?
According to local media analysis, whether it was the impact of 19th-century American industrial production methods, the quartz crisis of the 1970s, or the series of competitions brought by smartwatches, the traditional Swiss watchmaking industry has always maintained its stable position. Although only 25% of the watches produced in Switzerland are mechanical, they account for 75% of the total value.
I once interviewed a senior industry expert who indicated that while the impact of smartwatches on the Swiss watchmaking industry is growing, the segment truly impacted is quartz watches. Those who love mechanical watches value an emotional connection more, especially viewing “Swiss Made” craftsmanship with an artisan spirit as a luxury and art piece, where its symbolic and decorative significance outweighs its timekeeping function. Of course, facing continuous waves of impact, the traditional Swiss watch industry must also continuously innovate to adapt to new market demands.
Despite being full of uncertainty, the organization remains optimistic about the prospects of the Swiss watch industry in 2022, stating that watches will continue to benefit from sustained demand and the appeal of the luxury market. At the same time, factors such as difficulties in raw material or capital goods supply, high energy and transportation costs, labor shortages, and the strong Swiss franc remain potential constraints.
In recent years, China’s watch industry has embraced the development philosophy of transitioning from “Made in China” to “Created in China,” focusing on how to drive industry progress and development during the future industrial transformation process.
In November last year, a Chinese watch brand’s independently designed and developed mechanical watch won the “Challenge Prize” at the Japan High-End Watch Awards. This award fully reflects the continuous improvement of China’s watch industry’s independent innovation capabilities and is also a reward for China’s watch industry’s long-term accumulation, perseverance, and active participation and integration into the international stage of the watch industry.
At the end of June this year, the award-winning Chinese watch held a donation ceremony at a Japanese art and history museum. This marks the first time a Chinese-designed watch has entered a Swiss museum collection, skillfully combining watch technology, art, environmental protection, and culture, setting an excellent precedent.