The Watches and Wonders show in Geneva is making a highly anticipated return, bringing hope to the luxury watch industry. For the past two years, the industry has relied on virtual shows due to the pandemic, making this in-person event a milestone for the industry. The event will feature 38 of the biggest high-end watch brands, including renowned names like Rolex, Patek Philippe, Cartier, and Tag Heuer. However, amidst the excitement, concerns about the Ukraine conflict and ongoing Covid lockdowns in China linger, potentially impacting the overall mood of the event.
Emmanuel Perrin, the head of the Foundation High Horology (FHH), expressed satisfaction with the successful organization of the event despite the challenging health and human context. Perrin emphasized the importance of gathering the key players of the industry after two years of digital editions and disruptions caused by the pandemic.
Switzerland has long been a hub for high-end watch fairs, benefiting from its world-renowned watchmaking industry that employs around 57,500 people. These annual fairs serve as vital opportunities for retailers to place orders for the year while also acting as crucial communication platforms to engage with watch enthusiasts worldwide through online videos and presentations.
The 2022 edition of the Watches and Wonders show is taking place at Geneva’s Palexpo conference center and was expected to mark the return of thriving in-person interactions and booming business for luxury watchmakers. After a challenging year in 2020, with a significant decline in watch exports by 21.8 percent, the industry experienced a remarkable rebound in 2021. Watch exports surged by 31.2 percent, surpassing pre-pandemic levels and even breaking previous record-highs from 2014. The positive trend continued into the first two months of 2022, with exports growing by nearly 15.7 percent compared to the same period last year.
However, the ongoing conflict in Ukraine has cast a shadow over the industry’s optimism. While the Russian invasion does not have a significant direct impact on Swiss watch exports (representing only 1.1 percent of total exports in 2021), the industry heavily relies on tourism and consumer confidence, which have both been affected by the chaos of the past two years. Additionally, Russia is a major supplier of precious metals, such as diamonds and gold, used by high-end watchmakers.
The industry’s outlook is further marred by large-scale Covid lockdowns in China, one of the largest markets for Swiss watches. Some analysts have revised their growth forecasts for 2022 due to declining sales in Russia, restrictions on wealthy Russian individuals traveling abroad, and the overall impact of the conflict on European clients. Jon Cox, a top industry analyst, lowered his outlook from an eight-percent growth to five percent.
Despite these challenges, Cox maintains that the Swiss watch industry is still in a strong position. The sector has shown resilience, and excluding the Ukraine conflict, it is in its strongest position in years.
The Watches and Wonders show in Geneva will provide a platform for luxury watch brands to showcase their latest innovations, connect with retailers, and engage with watch enthusiasts worldwide. While global uncertainties pose significant challenges, the industry’s enduring spirit and innovation will continue to shine through.
Useful Links:
1. Watches and Wonders Official Website
2. Foundation High Horology Official Website
