【Switzerland】Why Luxury Watch Brands Are Feeling Squeezed by the Market in 2025

by

Editor’s Note

The luxury watch market is undergoing a significant transformation, with brands shifting strategies toward monobrand boutiques even as consumer preferences and the pre-owned market evolve. This article highlights key insights from Deloitte’s latest industry study, offering a timely look at the pressures and trends shaping the future of watch collecting.

Omega's New Watch Boutique in Boston
Market Pressures and Strategic Shifts

It is hardly news that luxury watches are getting a lot more expensive. Brands are prioritizing their own monobrand boutiques over multibrand retail stores, despite clear signs that consumers prefer the latter. Vintage and pre-owned watches are also of increasing relevance to younger buyers.
These are some of the key takeaways for collectors from “Time Under Pressure,” the 11th edition of the Deloitte Swiss Watch Industry Study, released on October 8. Based on an online survey of 111 industry executives and over 6,500 consumers in 13 countries, the study—conducted in June and July—takes stock of the watch industry during a precarious time.

“Overall, you see that the sentiment [among brand executives] is still focused on cost measures, being more efficient and sizing down because you don’t know what the future will hold,” says Karine Szegedi, head of consumer industry and luxury & fashion at Deloitte Switzerland. “It’s a bit like when Covid hit. First thing was cost effectiveness. But now, there are a lot of crises. They come closer together and they’re sharper and quicker. But somehow, the watch industry always manages.”
Rolex watches
Navigating Tariffs, Currency, and Gold Prices

One way executives are coping with the triple challenge of tariffs, the strength of the Swiss franc, and the soaring price of gold—which crossed the $4,000 per ounce threshold on October 7—is by charging more for their timepieces.

“Most brands have raised prices since the first of September,” Szegedi says. “And of course, price increases are not only in the U.S., but mostly global because the Swiss franc is a problem for all the countries. You can’t have a big price differential between the U.S. and other markets because of the gray market, travel and so on.”
The Enduring Importance of Physical Stores
One kilogram gold bars at a mint refinery in Australia

Another key finding of the study is that brick-and-mortar stores are more important than ever. Over 60 percent of respondents said they buy watches in-store, with 51 percent valuing the opportunity to try them on and 44 percent appreciating the advice and personal interactions. Overall, multibrand stores are more popular among respondents (38 percent) than monobrand boutiques (23 percent), but generational attitudes differ.

“What we see from practical examples is that when you buy your first watch or an important watch, you go to a monobrand store to get the breadth of the brand, and the sales executives are more trained,” Szegedi explains. “But in the end, you say to yourself, ‘It’s a big investment. Would there be an alternative that maybe I like more or has a better price value?’ because that’s the No. 1 criteria that you would like to contrast and compare before you even do the sale. In a monobrand store, you can only compare with the same brand… That’s what our female studies showed—that women feel more comfortable in stores that are not monobrands because they are often too focused on men and the watch. And sometimes women would like to maybe buy a bracelet or a ring or a watch.”

Despite consumer preferences, watch brands still appear to favor monobrand boutiques—41 percent of the senior executives surveyed said they plan to open a new one in the next 12 months.

The Rise of Pre-Owned and the Youth Market
Russell Crowe Watch Collection

Watchmakers keen to capture the interest of younger buyers would do well to offer a selection of vintage and pre-owned watches at their stores. According to the study, 40 percent of millennials and Gen Z intend to buy a pre-owned watch in the next 12 months, compared with just 20 percent of baby boomers. They’re drawn to affordability (53 percent) as well as access to unique or no longer available models (36 percent).

“Generation Z is redefining the watch market,” Szegedi says. “Their main criteria are affordability and uniqueness, as well as sustainability. The boom in pre-owned watches is no longer a niche trend. Rather, it is becoming one of the sector’s key growth drivers.”
Full article: View original |
⏰ Published on: October 24, 2025