Deloitte Swiss Watch Industry Study 2025
Time under pressure
As the Swiss watch industry takes a moment to reflect on its legacy, it is also navigating one of its most complex periods in recent memory. Demand remains fragile, tariffs have injected new uncertainty and price sensitivity is rising. The resilience of the Swiss watch industry is once again being tested — not by a single shock, but by the slow accumulation of pressure.
About the study
This eleventh edition of the Deloitte Swiss Watch Industry Study is based on an online survey of 111 senior executives in the industry, interviews with industry experts and an online survey of 6,500 consumers in the domestic Swiss market and top export markets for Swiss watches: China, France, Germany, Hong Kong, India, Italy, Japan, Singapore, the United Arab Emirates, the United Kingdom and the United States. This year we also surveyed consumers in Mexico and have included a specific section on this growing market.
Key findings
Weathering the storm
43% of industry executives hold a negative outlook for their main export markets, compared to just 23% with a positive view. Subcontractors, often the sector’s early warning system, report cutbacks in investment and increased reliance on short-term work. Even so, 61% plan to prioritise new product introductions in the year ahead; a sign that innovation and R&D remain firmly on the agenda.
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Some of the topics covered in the paper include:
Industry perspectives: cracks in the dial
Concerns about the broader economic climate are reflected clearly in the risks identified by industry executives for the coming 12 months. At the top of the list is the continued strength of the Swiss franc, which has long posed challenges for exporters, followed by weakening global demand. In Switzerland itself, the franc’s appreciation is having an impact. It used to be attractive for tourists to buy watches in Switzerland due to VAT refunds for tourists, but the exchange rate is now eroding this advantage.
|
2025 |
2023 |
|---|---|
|
Strength of Swiss Franc (+1) |
Shortage of qualified labour |
|
Weaker foreign demand (+5) |
Strength of Swiss Franc |
|
Decrease in purchasing power of consumers due to inflation (-) |
Decrease in purchasing power of consumers due to inflation |
|
Rising gold price (+13) |
Rising labour costs |
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Weaker domestic demand (+5) |
Insufficient supply of parts and movements from third-party manufacturers |
Consumer behaviour: why they buy
When it comes to the motivation behind watch purchases, findings from our global consumer survey state that 72% of respondents are planning to buy a traditional watch in the next 12 months for their own use. Regarding differences between age groups, baby boomers are clearly most interested in functional use: 42% want a watch in order to tell the time, compared to 26% overall. By contrast, only 7% of this generation would buy a timepiece in order to look good – something that matters a lot more to the rest of the respondents, with 17% in total selecting this option. For millennials, telling the time ranks just as highly as looking good (20%), both of which sit slightly below rewarding oneself (23%).
You've indicated that you will buy a watch in the next 12 months for your own use. Which of these statements best describe your motivation?
Exploring the Mexican market
When it comes to which type of watch is mainly worn, smartwatches have a stronger foothold in Mexico than in most markets: 38% of consumers say they wear one, compared with a global average of 30%. A further 25% wear both smart and traditional watches, while 19% wear purely traditional watches – a share below the global average of 26%. Yet when asked about their intentions, Mexicans are more inclined than average to purchase a traditional watch in the coming year (62% vs. 54%), while smartwatch purchases are also significantly higher than the global average (69% vs. 53%).
How likely are you to buy the following kind of watch in the next 12 months?
% that answered “somewhat” or “very” likely
Evan Sheehan
