Swiss Watch Industry Undergoes Rapid Transformation Amid Changing Consumer Preferences

The Swiss watch industry is undergoing significant changes as consumer preferences shift and new competitors emerge. Younger consumers, particularly Gen Z, are driving this transformation by prioritizing pre-owned luxury watches over traditional purchases.

Data from the Federation of the Swiss Watch Industry shows that the market is polarizing, with growth concentrated in high-end watches priced above 3,000 Swiss francs and entry-level mechanical watches below 500 Swiss francs. This shift bypasses traditional dealer networks relied upon by Swiss giants for decades.

The rise of non-Swiss manufacturers, such as Japanese brands like Seiko and Citizen, is also challenging Swiss dominance in the mid-market segment. These competitors focus on value, design, and e-commerce strategies, which are attractive to price-conscious younger buyers. The strong Swiss franc further complicates matters for Swiss firms, making their products more expensive for international buyers.

Despite these challenges, the industry is showing signs of recovery in 2026, with export rises of 11.2% and 9.6% in June and July respectively. However, the industry remains vulnerable to geopolitical instability, which continues to impact supply chains and regional demand.