Deloitte Study Shows Swiss Watch Industry Adapting to Permanently Lower Sales Volumes
The Deloitte study reveals that Swiss watch manufacturers are confronting a lasting decline in sales volumes, prompting a shift from short‑term cost‑cutting to longer‑term strategies focused on new product development, market diversification, and research and development. While premiumisation and higher prices have helped maintain revenue, the industry faces structural risks as lower volumes threaten the sustainability of mid‑range production and the broader supplier ecosystem. Suppliers are increasingly exploring AI, automation, and diversification into sectors such as medical technology and aerospace to preserve capabilities and create additional demand. Consumer research shows limited willingness to spend beyond CHF 1,500 on traditional watches, with a growing preference for value, design, and Swiss provenance rather than price alone. Although interest in traditional watches remains, smartwatches and pre‑owned markets are gaining traction, and many consumers favour multi‑brand retailers over mono‑brand boutiques. The industry’s future depends on delivering appealing, affordable products and leveraging innovation to sustain the skilled workforce and production capacity essential to Swiss watchmaking.
Buying Time Analysis: The story highlights how the Swiss watch industry is confronting a permanent decline in sales volumes, prompting a strategic shift toward innovation, diversification, and new market development to sustain jobs, skills, and long‑term viability.
