Insights from Morgan Stanley’s Ninth Annual Swiss Watch Report
Morgan Stanley's Ninth Annual Swiss Watch Report reveals significant shifts in the Swiss watch industry, highlighting a decline in overall unit shipments, which dropped to 14.6 million in 2025, a multi-decade low. The report underscores a growing concentration of market power, with four major brands—Rolex, Cartier, Audemars Piguet, and Omega—accounting for 55% of total industry sales. This trend indicates that smaller and mid-tier brands face increasing challenges, as the market dynamics shift towards a few dominant players. The report also emphasizes the profitability of ultra-high-end watches priced above CHF 50,000, which contributed to 89% of the growth despite making up only 1.4% of total units sold. As the industry evolves, brands need to adapt to the new competitive landscape. The report suggests that being privately owned provides a strategic advantage, enabling brands like Rolex and Patek Philippe to maintain higher profit margins and control over their distribution. Meanwhile, brands not among the giants must cultivate a unique cultural presence to survive in a market increasingly dominated by a select few. The findings indicate that the Swiss watch sector is transitioning into a luxury collectibles business, where the ability to command high prices for a limited number of exclusive products is becoming the primary driver of growth.
