In the world of fine timepieces, where a single glance at your wrist can spark a story of craftsmanship and legacy, things are getting a bit rocky. The Swiss watch industry, long a symbol of precision and prestige, is navigating a storm of rising costs, shifting buyer habits, and economic headwinds that have executives scrambling. It's a moment that feels all too familiar to seasoned collectors—those who've ridden out market dips before and come out with a sharper eye for value. The latest insights from Deloitte's deep dive into the sector paint a picture of resilience amid uncertainty, reminding us that even the most enduring industries must adapt to survive.
Picture this: Gold, the gleaming backbone of many a luxury dial and case, recently surged past the $4,000 per ounce mark on October 7. That's not just a number—it's a direct hit to the bottom line for brands that rely on precious metals to craft their icons. Add in the relentless strength of the Swiss franc, which makes exports pricier, and a fresh 39 percent tariff on Swiss imports to the U.S. imposed by President Trump, and you've got a perfect storm. These pressures aren't abstract; they're forcing watchmakers to rethink everything from pricing strategies to where they sell their wares. Yet, as one expert notes, there's a quiet grit in the air: “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.”
This isn't the first rodeo for the industry, of course. Those who've been collecting for decades remember the lean years, when global events tested the mettle of even the most storied maisons. But today's challenges hit differently—faster, more interconnected. The Deloitte Swiss Watch Industry Study, titled “Time Under Pressure” and now in its 11th edition, lays it all out in stark detail. Released on October 8, the report draws from an online survey of 111 industry leaders and more than 6,500 consumers across 13 countries. The timing is telling: Data was gathered in June and July, just before the tariff hammer fell, offering a snapshot of optimism tinged with caution. What emerges is a sector that's leaning hard into efficiency, much like a well-tuned movement that sheds unnecessary parts to keep ticking smoothly.
At the heart of this squeeze is the simple act of pricing. With raw materials skyrocketing and currencies flexing their muscle, brands have little choice but to pass costs along. “Most brands have raised prices since the first of September,” Szegedi explains. “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.” It's a pragmatic move, one that collectors who've watched list prices climb over the years can appreciate. Back in the day, a modest hike might have raised eyebrows, but now it's par for the course. The gray market—that shadowy network of resellers and travelers snapping up deals abroad—keeps things in check, ensuring no single region gets too far out of line. For the guy who's built a collection over quiet evenings in the study, poring over catalogs, this global balancing act underscores why timing a purchase matters more than ever.
But price tags tell only part of the tale. The real drama unfolds in the showrooms, where the tactile joy of handling a watch still reigns supreme. In an age of endless online scrolling, it's striking how brick-and-mortar stores hold sway. The study reveals that over 60 percent of buyers prefer making their purchase in person. Why? For 51 percent, it's the chance to strap on a piece and feel its weight, see how the light dances off the bezel. Another 44 percent point to the human touch—the seasoned advice from a salesperson who's seen it all, perhaps sharing a tip on how a certain model holds up on a long-haul flight or pairs with a well-worn leather jacket. These aren't just transactions; they're rituals, the kind that turn a watch into a companion.
Yet here's where preferences splinter along generational lines, a divide that might ring true for fathers passing down heirlooms to sons who see timepieces through a fresh lens. Multibrand stores—those bustling emporiums stocked with offerings from across the horological spectrum—emerge as the clear favorite, with 38 percent of respondents gravitating there. Monobrand boutiques, sleek sanctuaries dedicated to a single house, trail at 23 percent. Dig deeper, and the numbers sharpen: Baby boomers and Gen Xers, often the backbone of serious collections, love the variety in these multi-outlet spots—46 percent cite the broad selection as a draw. It's like wandering a well-curated gallery, where one counter's understated elegance contrasts with another's bold complications, sparking that thrill of discovery. Younger crowds? Only 27 percent feel the same pull, perhaps because their entry points are more digital, more exploratory.
Szegedi sheds light on this shift with a practical edge: “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.” That makes sense for the novice dipping a toe in—immersing in the full lore of, say, a heritage diver or a dress watch with roots in aviation history. But as the decision looms larger, doubts creep in. “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, but sometimes you would like to go outside of the brand.” It's a mindset that resonates with the pragmatic collector, the one who's learned that true value often hides in the comparison, not the isolation.
Brands, though, aren't fully on board with this consumer wisdom. Despite the data screaming for more multibrand partnerships, 41 percent of senior executives polled plan to roll out new monobrand boutiques in the coming year. It's a bold bet on control and brand purity, opening flagships like Omega's recent Boston outpost, a space designed to envelop visitors in the marque's world—from moon-landing chronographs to sleek Seamaster evolutions. These spots shine for immersion, with staff versed in the nuances of movements and materials. But for many, especially those weighing a significant outlay, the echo chamber can feel limiting. And let's not overlook the broader appeal: “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.” In a market where couples often shop together, this inclusivity gap could cost opportunities, reminding brands that luxury isn't one-size-fits-all.
As these retail tensions simmer, a quieter revolution brews among the next wave of enthusiasts. Vintage and pre-owned watches, once the domain of dusty auctions and whispered deals among old-timers, are surging in appeal—especially to millennials and Gen Z. The study flags a stark intent: 40 percent of these younger buyers plan to snag a pre-owned piece in the next 12 months, dwarfing the 20 percent among boomers. Affordability leads the charge at 53 percent, a no-brainer in a world where entry-level new models can rival a down payment. But it's more than thrift; 36 percent chase the rarity—the chance to own a discontinued gem, like a '70s sports watch with patina earned from real adventures, or a limited-run chronograph that's vanished from production lines.
This trend isn't just about stretching dollars; it's a nod to sustainability and story. Pre-owned pieces carry histories—scratches from boardroom battles, faded lume from midnight shifts. For the collector who's filled cases with modern marvels, dipping into vintage offers a bridge to the past, a way to mentor the up-and-comers without breaking the bank. Brands eyeing longevity would be wise to weave these into their retail mix, perhaps curating certified pre-owned sections in those multibrand havens. Imagine walking into a store, eyeing a fresh release alongside a lovingly restored classic—options that speak to both the impulse buy and the lifelong pursuit.
Stepping back, “Time Under Pressure” isn't a dirge; it's a roadmap. The industry, for all its woes, has weathered worse—recessions, pandemics, you name it—and emerged with innovations that redefine what's possible on the wrist. Executives are trimming fat, yes, but they're also scanning horizons for efficiencies that preserve the soul of Swiss watchmaking: that unyielding quest for perfection in every tick. For collectors, it's a call to sharpen instincts—scout those multibrand spots for deals, embrace the pre-owned allure for hidden treasures, and remember that a rising tide of costs doesn't drown discernment.
In the end, the watch world endures because it mirrors life: full of pressures that forge character. Whether you're eyeing your next grail or simply admiring the one that's kept time through decades of milestones, this moment invites reflection. The market may squeeze, but it also polishes, revealing the timeless appeal of a well-made watch—one that doesn't just tell time, but measures the richness of the moments it accompanies. As the industry adapts, so too can we, turning uncertainty into opportunity, one strap at a time.
