Even before Covid-19, parts of the Swiss watch industry faced an existential crisis. With prices spiking and volumes in freefall, change was on the way. Add the global pandemic to factors such as the genesis of the luxury smartwatch and the strength of the Swiss franc, and some brands — particularly those with so-called entry-level watches priced to attract newcomers to the market — are in a fight for survival.
At first glance, the market looks strong. According to the Federation of the Swiss Watch Industry (FHS), export values (roughly half retail value) of Swiss watches are rising, up from SFr15.1bn ($16.7bn) in 2010 to SFr20.5bn last year.
But the figures mask a rapid decline in volumes. The FHS’s data also shows that over the same 10-year period, exports fell from 26.1m to 20.6m units. The fall was felt most abruptly by brands making watches with an export value below SFr500, where volumes have slumped. Last year, Switzerland exported 8m fewer watches in that price bracket than a decade earlier.