Swiss watchmakers are expressing optimism about the demand for luxury timepieces despite geopolitical tensions and fears of a recession. Industry executives have shared their positive sentiments ahead of the upcoming Geneva Watch Days event, set to start on Monday. Swiss watch sales have demonstrated a strong recovery from the pandemic slump in 2020, with exports rising by 11.4% in the first seven months of 2022.
Jean-Christophe Babin, the head of LVMH jewellery and watch brand Bulgari, stated that consumer mindset remains positive for now. However, there is uncertainty about the sustainability of this trend. Babin highlighted that Bulgari is gaining market share and experiencing stronger growth in its watch business compared to the rate of Swiss watch exports.
Edouard Meylan, the head of the independent watch brand H. Moser & Cie, acknowledged that there have been several concerning factors in the past two years, including the pandemic, the war in Ukraine, and inflation. However, he pointed out that watch exports are still close to their all-time highs. Meylan emphasized the need to seize the current opportunities while also preparing for a possible slowdown. Sales for H. Moser & Cie have increased by over a quarter this year, although there have been challenges with watch cases and straps.
The Geneva Watch Days event will feature approximately 40 brands, providing an informal platform for industry players to showcase their exhibits in hotels and boutiques throughout the city. This format makes the event more accessible compared to the exclusive Watches & Wonders show held in the spring. Guido Terreni, the CEO of Parmigiani, a niche brand owned by the Sandoz Family Foundation, mentioned that the brand was unable to meet the surging demand, which had increased by 4.5 times compared to last year. Terreni expressed confidence that they were moving towards breaking even.
Despite the challenges faced by the industry, there is still a strong market for new timepieces, with waiting lists for many models, according to U.S.-based retailer Danny Govberg. He also noted that prices in the secondary market had fallen, but the gap between retail prices and trading prices has stabilized. This sentiment was echoed by British retailer Watches of Switzerland earlier this month.
Jon Cox, an analyst at Kepler Cheuvreux, mentioned that if prices for second-hand watches significantly decrease compared to primary prices, it could potentially impact the demand for new watches. However, this does not appear to be the case currently.
Overall, Swiss watchmakers are maintaining a positive outlook and are hopeful that the demand for luxury timepieces will continue to thrive.
Useful Links:
– Bulgari Official Website
– H. Moser & Cie Official Website
