Why Are Wristwatches Becoming Scarcer?
The Swiss wristwatch industry is experiencing a notable decline in the volume of watches produced, driven by a trend known as "Premiumisation." Brands are opting to manufacture fewer, higher-priced timepieces, as evidenced by Louis Vuitton slashing its production by 50% while doubling the average sale price. This shift has resulted in a decrease in overall industry exports, with the total volume of watches dropping to 14.6 million—a significant decline since the peak in 2011. Meanwhile, brands like Longines are facing challenges due to fluctuating demand and price increases, leading them to reduce their production by 18% in hopes of stabilizing sales. As a consequence of this reduced supply, collectors are seeing a polarization within the industry, with brands increasingly focusing on exclusivity and limited editions. This strategy not only raises prices but also limits variety, as brands consolidate their offerings around best-selling models. The trend suggests that fewer mid-range options will be available, potentially leaving consumers with less choice and more vulnerability if popular models fail to perform in the market. Overall, the landscape of the Swiss watch industry is shifting towards a more exclusive and expensive market.
