The luxury watch industry is currently experiencing a surge in demand, leading some companies to delay the release of new collections and others to invest in expanding their production capacity. This high demand comes after a significant recovery in the watch industry in 2021, following the economic impact of the COVID-19 pandemic in 2020. Despite uncertainties caused by Russia’s war in Ukraine, the sector started off 2022 on a positive note.
One notable example of a successful year in the luxury watch industry is French luxury group Hermes, whose watch business saw sales increase by 73 percent in 2021. At the Watches and Wonders event in Geneva, Hermes vice president Guillaume de Seynes emphasized the strong global demand for luxury watches, noting that the company could have sold even more if production capacity had allowed it. De Seynes stressed the need for investment in production for the upcoming year.
Oris, another luxury watch brand, also experienced a successful year but had to delay the launch of a new collection due to a shortage of watch movements. The company decided to prioritize supplying existing models instead of launching new ones that couldn’t meet the demand. Additionally, Swiss watch exports rebounded in 2021, surpassing pre-pandemic levels and even exceeding the record set in 2014. The recovery in the industry has been primarily seen in watches priced above 3,000 Swiss francs.
While the luxury watch industry faces potential challenges due to the war in Ukraine and sanctions on Russia, it can rely on wait lists for high-end timepieces. Edouard Meylan, CEO of H. Moser & Cie., mentioned that watches not delivered to Russia will be sold in other markets. Meylan also stated that all of H. Moser’s 2022 production is already pre-sold to retailers and partially pre-paid by customers. He expressed confidence that independent brands like H. Moser would not be significantly affected unless there was a major financial crash.
The strong demand for luxury watches demonstrates the resilience and enduring appeal of these timepieces, even in challenging times. Luxury watchmakers now face the task of meeting this unprecedented demand while ensuring the quality, craftsmanship, and exclusivity that their customers expect. It remains to be seen how the industry will navigate these challenges and continue to satisfy the growing appetite for luxury watches.
Useful links:
1. Hermes CEO Guillaume de Seynes Talks Timepieces and What’s Coming Next
2. Swiss Watchmakers Unveil Sights Set Higher Than Pre-Pandemic Peak
