The Deloitte Swiss Watch Industry Study
Time for the future
Welcome to the second Deloitte Watch Industry Study. Building on last year’s success, more than 50 senior industry executives participated in this year’s survey which was based on personal interviews or an online survey.
The study highlights the views of watch company executives on the key challenges and opportunities facing the Swiss watch industry at an important time in its history. After several years of extraordinary growth, fuelled by rapidly increasing demand from new markets, particularly China, Swiss watch exports have entered a period of slower growth. Yet the fundamental growth drivers for the Swiss watch industry remain in place: increasing demand from emerging markets, new customers from some mature markets, as well as sales to foreign tourists eager to buy watches in Switzerland and other European countries.
Key features of this year’s survey show industry executives being the most optimistic for growth at the high-end of the watch market. Support for the Swiss Made legislation has become even stronger. Innovation, notably in product design, distribution and marketing, is expected to continue to be a key focus. The survey also shows a shift away from concerns about demand and the strong Swiss Franc towards supply-side risks, primarily the shortage of skilled labour and availability of components, which many expect to create significant challenges, particularly for the small independent brands.
However, the main sentiment from Swiss watch executives is that of confidence that their industry will continue its extraordinary success story.