Baselworld is the world’s most important trade fair in terms of the Swiss watch industry, despite the fact the importance of such events has been diminishing greatly. Trade shows such as Baselworld still offer a great opportunity for luxury watch manufacturers to build a buzz.
Much of the issue with trade shows is that the sheer number of shows present a very difficult schedule for watch manufacturers to meet. You can read more on this in our previous blog post, here. Regardless, Baselworld has been a stable and vital point on the calendar for a very long time.
Luxury Watch Sales in 2014
2014 welcomed another record-selling year for the Swiss watch industry with a 1.9% increase in sales, but this figure did include some slowdown. Of course, a major chunk of the Swiss watch industry relies on exports, and major markets - typically serviced by a wealth of trade shows (usually on a smaller scale than Baselworld) - are serviced by these.
This slowdown was compounded by fears were initial fears surrounding the show as the Swiss National Bank announced this January it would be no longer capping the Swiss franc against the Euro; something that caused it to destabilise and impacted on the Swiss watch industry.
The high costs (in Swiss francs) for watch companies in Switzerland meant the luxury market suffered. This has caused concern and outrage for many of the major Swiss manufacturers, and puts an even greater emphasis on Baselworld to provide a solid base for growth ahead of next year’s much needed exports. Of course, exports make up the majority of the Swiss watch industry’s sales.
Competition
The Apple Watch has been unveiled to also have a special $10,000 edition - an 18 carat gold watch that has prompted luxury watch manufacturers into action. We covered the fact the LVMH alluded to the fact that their TAG Heuer brand was the most likely to combat Apple on this front, and it appears that these industry fears are pushing them into action through the creation of a ‘smart’ watch. Another major luxury manufacturer, Montblanc announced its e-strap, again proof of a major luxury player combatting Apple’s advance. All of this looks set to defend the luxury watch market.
Rolex at Baselworld
Manufacturers like Rolex aren’t very likely to step away from what they know. Baselworld is their opportunity to highlight their new pieces and keep exports high. The demand for buying Rolex watches is perennially high, but organisations with a lot of brands under the name (such as LVMH) are able to apply those brands that best fit to address the growing competition from those outside of Switzerland.
Brietling B55
Brietling, in answer to this, used Baselworld to further publicise their Brietling B55. This shows a rather innovative take on the smartwatch concept, with what is still a mechanical watch, but one that can also operate as a computer.
The B55 is connected to a smartphone via Bluettoth, and as a result the watch itself doesn't look all that different. This obviously means it packs a great deal of appeal to traditional watch buyers. Rather than replacing the phone - or replacing the watch - the B55 simply connects the two. There are clever features that allow you to control functions of the watch via your smartphone app. It is for subtle innovations like these that the Swiss watch industry typically stays ahead of the curve. Rather than competing with Apple, Breitling have catered for what could be a growing part of the market whilst levelling the playing field. As a showcase for luxury watches, Baselworld gives manufacturers a chance to fight their corner, and on their own terms.
Secondhand Swiss Watches
Of course, none of these changes will impact the secondhand watch buying market a great deal. A great watch remains a great watch, and new editions only at to make previous models all the more desirable. The fact remains however, Baselworld 2015 is extremely important for the Swiss watch industry to safeguard their position at the forefront of the luxury market.