Editor’s Note
This analysis of the Swiss watch industry’s 2024 performance highlights a deepening market split, where leading brands solidify their dominance amid broader sector challenges. The trend toward premiumization continues to reshape the competitive landscape.
According to the latest report published by Stanley Morgan in partnership with LuxeConsult, the Swiss watchmaking market experienced increased polarization in 2024: major houses continued to outperform while the most fragile players struggled to keep up.
As anticipated each year, the report by Stanley Morgan in collaboration with LuxeConsult provides a detailed overview of the state of the Swiss watchmaking market. As we mentioned a few weeks ago, the sector is facing a downturn after three years of post-Covid rebound: Swiss watch exports indeed recorded a decline of -2.8% in value. A key reason is the slowdown in luxury goods consumption in China, with watch exports to this market plummeting by -23%.
In this global context, the report highlights an increasingly stark phenomenon: the polarization of the sector. In 2024, the four leaders – Rolex, Cartier, Omega, and Patek Philippe – held 52.4% of sales, compared to 49.8% in 2023. This polarization is accompanied by a significant move upmarket: watches priced over 50,000 CHF generated 84% of the sector’s growth, although they represent only 1.2% of sales volume.
As in previous years, the report emphasizes that it is independent private brands like Rolex, Patek Philippe, Audemars Piguet, and Richard Mille that continue to gain market share, while the three major listed groups – LVMH, Richemont, and especially Swatch Group – are losing ground. The case of Swatch Group is particularly concerning, as the company lost 18.3% market share, largely due to its heavy dependence on the Chinese market.
According to the Stanley Morgan x LuxeConsult report, the main challenge for Swiss watch brands will be to focus their development on promising markets, such as the United States, which is supporting demand (+4% in exports). It will also involve optimizing new distribution strategies, following the example of Rolex, which, thanks to the acquisition of Bucherer, benefits from a new, extensive distribution network.