Editor’s Note
The luxury watch market has experienced dramatic swings in recent years, from record highs to sudden corrections. As Chopard’s co-president observes, maintaining equilibrium through these cycles is the true test for enduring brands.
Karl-Friedrich Scheufele describes the watch industry’s experience since 2020 as a roller coaster ride. The co-president of the watch and jewelry brand Chopard mentions record sales in 2022 and 2023, followed by a sharp drop the following year. The ups and downs are certainly not new. What matters, he says, is “that we don’t become too euphoric during boom phases and that we keep our feet on the ground.”
That said, the watch industry is not groggy. And it remains in good company. According to a McKinsey study, more than 80% of the growth in the luxury sector (fashion, handbags, jewelry, and watches) between 2019 and 2023 was based on price increases. Demand was further fueled by a strong inclination to consume following the pandemic. As a result, the luxury segment grew faster than the overall economy.