Omega finally embraces sensible pricing
Swiss watchmakers are facing a pricing dilemma as luxury brands raise prices while overall demand declines. Omega’s new 38 mm Speedmaster, priced at $6,500, exemplifies a more pragmatic approach aimed at stimulating sales and better utilizing manufacturing capacity, whereas Zenith’s high‑end Chronomaster Solo Sport models, some costing $10,900, illustrate a strategy of maintaining ultra‑luxury positioning despite falling unit sales. Export data shows a rise in ultra‑luxury watch shipments and a drop in the mid‑range segment, highlighting a market shift toward higher‑priced pieces. The divergent tactics have led to contrasting outcomes: Omega’s average retail price has risen modestly to CHF 6,800 while production fell to 460,000 units in 2025, and the brand has refrained from price hikes this year. In contrast, Zenith’s average price has nearly doubled to CHF 15,600 as output slipped to 8,500 units, resulting in secondary‑market prices that fall significantly below retail. The analysis suggests that focusing on ultra‑luxury alone may be unsustainable, and a more competitive pricing strategy, as adopted by Omega, could be essential for the broader Swiss watch industry.
Buying Time Analysis: The story highlights how Omega’s pragmatic pricing strategy contrasts with Zenith’s premium approach, underscoring a pivotal shift in the Swiss watch industry toward value-driven pricing to sustain production and market demand.
