There’s a quiet earthquake going on in certain sectors of the luxury market, and Swiss watches are at its epicentre. As forces have gathered over the last couple of years, coming from several different directions, you had to have had a careful eye on global markets, technological advances and political shakeups to have predicted it.
Export Markets Change
Sales of luxury watches have slowed in China, with various reasons being given by experts in the industry. One of those is the political climate of fear following the recent crackdown on corruption possibly leading to a reluctance to flaunt expensive wrist watches. The end result is an opportunity for lesserknown brands to cash in, with the rising demand for more minimalist timepieces aiding their rise. However, as the market in China and Hong Kong slows down, the USA market is bouncing back, so it’s not yet all over for luxury brands at the top end. USA imports rose by over 22% when compared with the same period last year.
Quartz All Over Again?
The last time the luxury mechanical watch market saw seismic changes in the global market was several decades ago, when the quartz movement took the world by storm. Suddenly, no one wanted mechanical watches anymore.
Everyone sported little glowing numbers on their wrists, with apparently magical functions available at the touch of a button. In the wake of the quartz revolution, several smaller Swiss manufacturers went out of business, and entire watchmaking communities felt the brunt of the decline in their market. This kind of market shakeup is nothing new, but the current situation with luxury watches opens up new opportunities for buyers who’re always looking for a good deal.
Apple’s entry into the watch market with the introduction of the smartwatch has played a big part in the market changes, and no one is taking it for granted. In order to remain competitive for the watchbuying public, prices have seen something of a tumble for more traditional mechanical luxury Swiss watches.
A Buyer's Market
Watch manufacturers in general have welcomed Apple’s foray into the watch world because of the potential new appeal that watchwearing will have with a younger generation. Now more comfortable with consulting their phones for the time, new watch enthusiasts have been few and far between, so as watchwearing once more becomes fashionable, traditional manufacturers hope this will spill over and tempt new buyers into the market.
Market forces, competition from new directions and changing world values all add up to a perfect storm that blows a good wind in the direction of luxury watch buyers. Whether it's in the low, mid or high range, prices have never been better or conditions more favourable. It’s rarely a buyer's market in any luxury brand sector, and watches are no exception. Right now, with conditions being as they are, anyone looking to enter the Swiss market should make their move.