Business News: Swiss Watch CEOs Expect To Make Fewer Watches This Year As Economic Instability Roils Consumer Confidence
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Even the largest and most profitable manufacturers might reduce amid the uncertainty and ongoing pattern of decrease volumes and better costs. Whole Swiss watch trade volumes have practically halved since 2011, in response to analyst estimates by Morgan Stanley and LuxeConsult.
Rolex, the trade’s dominant participant, producing greater than 1 million watches a 12 months, now accounts for about 60% of Swiss watch exports for watches priced above 3,000 CHF at wholesale, up from about 50% in 2019, in response to analysis by Swiss financial institution Vontobel. The Crown additionally dominates the secondary market, accounting for about one-third of gross sales.
The common promoting worth of a brand new Rolex has climbed to about 15,000 CHF, in response to Vontobel, whereas its manufacturing quantity has slowed and even contracted barely with volumes falling by 2% in 2024, the primary decline since 2009, in response to Morgan Stanley estimates. The financial institution expects volumes to contract additional in 2025.
Rolex doesn’t remark publicly on its manufacturing volumes however has shared particulars of plans to construct new manufacturing amenities in Bulle, within the canton of Fribourg, which might be anticipated to be operational by 2029, which can improve capability.
