The luxury watch industry, long celebrated for its craftsmanship and elegance, is presently navigating through a challenging landscape. After a turbulent two-year period marked by soaring prices and a corresponding drop in demand, there are signs that the market may be on the verge of recovery. This prospect is driven by a shift in consumer sentiment and market dynamics, particularly against a backdrop of tech fatigue and disillusionment with high-end fashion.
Luxury watch enthusiasts are cautiously optimistic that the worst is behind them. The Bloomberg Subdial Watch Index, which tracks secondhand prices of the 50 most popular watch models, has risen approximately 1% from its multi-year lows recorded earlier this year. While this may not seem like a significant uptick, it indicates a potential turning point for collectors and investors alike. Companies like Seiko Group and Watches of Switzerland have reported sales growth in their recent financial quarters, although powerhouse conglomerates such as LVMH and Richemont continue to experience lackluster performance across their watch portfolios.
A notable trend is emerging among consumers who have become disenchanted with the hyper-trendy luxury fashion items that dominate today’s market. As prices for handbags and logo-centric products surge, buyers are increasingly drawn to traditional timepieces. This sentiment was echoed by watch analyst Oliver Müller, who speculated that Rolex could soon surpass Apple as the world’s largest watchmaker.
Brynn Wallner, founder of Dimepiece, a platform focused on women in watch culture, captures this sentiment succinctly: “There’s something about watches that feels more permanent than other luxury items.” The desire for durable, timeless pieces is compelling many new buyers to consider investing in watches as lasting symbols of luxury and success.
Unlike the broader fashion world, which is heavily influenced by fleeting trends, watches hold a certain timeless appeal. They are often viewed as heirlooms, embodying craftsmanship, artistry, and tradition within their intricate designs. Even the luxury watchmakers are adapting to this new environment, exercising more restraint in their production strategies. According to figures from the Federation of the Swiss Watch Industry, exports in the first nine months of 2024 fell by 2.7% compared to the previous year, suggesting a more measured approach to inventory management.
However, whether the recent uptick can sustain itself is still uncertain. Observers acknowledge that while the market seems to be stabilizing, many collectors remain hesitant, especially those who may have been burned during the previous market fluctuations. Tim Stracke, co-CEO of Chrono24, noted an increased willingness to purchase watches among collectors compared to the past year, yet he also cautioned against anticipating rapid changes in overall market stability in the short term.
A significant cultural shift is manifesting in the watch industry, with many brands actively targeting underserved market segments, particularly women. Historically, women’s watches have been overlooked in favor of men’s luxury models. Brands like Grand Seiko are seizing this opportunity, planning to expand their offerings in the $10,000 to $15,000 range while also introducing smaller styles that appeal to female consumers. This pivot marks a departure from traditional marketing practices, signaling a growing recognition of women’s influence in the luxury market.
As luxury timepieces increasingly become a central topic in fashion conversations, they are also gaining visibility within popular culture. Celebrities and influencers are embracing watch collections, thereby reshaping perceptions of how these accessories can complement a wider lifestyle. For example, figures such as Tyler, the Creator, renowned for his eclectic style, have been seen flaunting impressive collections of vintage watches alongside high-fashion garments, showcasing watches as staple elements of personal style.
The market is also witnessing a surge in demand for vintage models, as collectors search for classics with character over newer releases. William Massena, a respected collector and founder of Massena LAB, remarked that selling high-end watches—often priced well above $100,000—has become easier than selling those priced under $1,000, which struggle against smartwatch competition.
Retail environments are evolving too, particularly in the growing U.S. market for certified pre-owned watches. Retailers like Watches of Switzerland and Bucherer, which was acquired by Rolex, are redefining the buying experience, focusing on exceptional customer service to foster loyalty and stimulate repeated purchases among clients.
While challenges remain, particularly for lower-priced segments, an important opportunity lies in addressing the needs of women. A recent survey by Deloitte revealed that 85% of female respondents believe the watch industry does not adequately cater to their preferences. Addressing this gap could unlock significant growth.
In conclusion, the outlook for the luxury watch sector, while not devoid of challenges, is increasingly favorable. As consumer preferences shift towards durability, authenticity, and timelessness, the luxury watch market may very well be on the cusp of a notable resurgence.
