Due to the economic environment and geopolitical factors, the Swiss watch industry is facing significant challenges this year.
Since February, monthly reports from the Federation of the Swiss Watch Industry (FH) have shown a continuous decline in Swiss watch exports to the Chinese Mainland, with the steepest year-on-year drop reaching 41.5% in March.
Richemont, one of the two largest Swiss watchmaking groups, revealed in its latest quarterly report that sales in its Specialist Watchmakers division had fallen, particularly in the Chinese Mainland and the Hong Kong-Macau markets.
How are brands responding to the current challenges? Can the Chinese market recover? A series of pressing questions confront the industry.
The Watches and Wonders Shanghai exhibition was held at the West Bund Art Center from August 28 to September 1, 2024. Due to market uncertainty, the number of participating brands reduced from a peak of 14 to 9 this year.
Vacheron Constantin, Panerai, Roger Dubuis, A. Lange & Söhne, NOMOS Glashütte, Baume & Mercier, IWC, Cartier, and Piaget showcased their new creations, striving for breakthroughs amid adversity. Despite the challenges, Luxe.co has learned that most brands remain optimistic about the future of the Chinese market.
For the first time, this year’s Watches and Wonders Shanghai was open to the public. According to official data, the exhibition attracted tens of thousands of independent visitors over five days, with more than 5,000 watch enthusiasts and end customers from Shanghai and the Asia-Pacific region attending the three-day public open days. Notably, 70% of the public day tickets were purchased by visitors under 35.
Matthieu Humair, CEO of the Watches and Wonders Geneva Foundation, visited China again, engaging directly with Chinese customers and discussing strategies with industry insiders to navigate the current challenges.
In an interview with Luxe.co, Humair expressed optimism about the watch industry, highlighting the importance of in-person interactions with the new generation of consumers for watch brands.
“The more difficult the times, the more brands need to unite.”
Below is the interview transcript:
Luxe.co: According to the latest data from the Federation of the Swiss Watch Industry, in July, Swiss watch exports to the Chinese Mainland fell by 32.8%. How do you view this phenomenon?
Matthieu Humair: Different markets will always experience fluctuations, but globally, the overall trend remains positive.
This is why events like Watches and Wonders are crucial for promoting the watchmaking industry. In challenging times, brands should collaborate rather than face difficulties alone.
Engaging with young customers, whether through in-person interactions or social platforms, is the most effective way for watch brands to attract potential customers.
Luxe.co: What strategies should brands adopt to quickly familiarize new customers with their products?
Matthieu Humair: Every brand has its own approach, but from the foundation’s perspective, experiences are key. When young customers enter a brand’s boutique or attend a watch exhibition, they expect an immersive and emotionally engaging experience.
The watchmaking industry is about creating dreams. People need to have a full, immersive experience at exhibitions or in boutiques. This is why at these events, experts tell stories to the audience. People need to dream.
Luxe.co: Watches and Wonders has become a major event in the watch industry. What makes it unique?
Matthieu Humair: The Watches and Wonders Geneva Foundation was established in 2022 by Rolex, Richemont, and Patek Philippe as a non-profit foundation, aiming to promote watchmaking through global events. Watches and Wonders Geveva is the most significant among these events.
At Watches and Wonders Geneva, brands showcase their latest collections and cutting-edge trends before they hit the market. The Shanghai exhibition is a localized, regional event that allows participating brands to engage more closely with Chinese consumers and the media.
What sets Watches and Wonders Geneva apart is our close collaboration with the brands. We listen to their needs and work together to shape the future of the event. They have the freedom to decide what they want to present.
Luxe.co: How has the foundation evolved over the past two years?
Matthieu Humair: This year, the foundation welcomed three new members: Chanel, Hermès, and LVMH. This was a significant strategic move. The foundation’s mission is to inspire passion in the younger generation. With the support of all stakeholders, the watchmaking industry will shine even brighter.
At the exhibition, Luxe.co identified three core themes among the products showcased by participating brands:
- Deep Exploration of Chinese Culture: The rich Chinese culture provides endless creative inspiration for watch brands operating in this market. By continually drawing from Chinese culture, brands demonstrate their commitment to the local market and their eagerness for sincere dialogue with Chinese consumers. Vacheron Constantin, with its long-standing connection to China, serves as an exemplary model in exploring local culture.This year, Vacheron Constantin presented the Métiers d’Art “Tribute to Chinese Cultural Symbols” collection, featuring the “Sea and Cliff” motif, as well as the new Métiers d’Art Legend of the Chinese Zodiac – Year of the Snake watch.
- Showcasing Patented Technologies and Complex Functions: Patented technologies and complex functions are hallmarks of a brand’s strength. At every Watches and Wonders, we witness breakthroughs that may have taken years or even decades to develop.This year, Panerai unveiled the Submersible Elux LAB-ID, a watch developed over eight years with four new patents. Roger Dubuis introduced a masterpiece that combines a perpetual calendar, minute repeater, and other complex functions, while A. Lange & Söhne dedicated a space to showcase several models with complex functions from its “Lumen” series.
- Art, Color, and Sportiness – Making Watches More Fashionable:As luxury fashion brands enter the watchmaking field with designs that challenge traditional aesthetics, professional watchmaking brands are also placing increasing emphasis on the fashionable expression of their products. This aligns with technological innovation and makes watches a fashionable accessory.German watch brand NOMOS Glashütte, along with Baume & Mercier and IWC, showcased their classic models in various new color schemes. Cartier presented the Reflection de Cartier watch, inspired by open cuff bracelets, with one side as a delicate dial and the other a mirror. Piaget debuted the Polo Skeleton Ceramic, combining ultra-thin cases with skeleton design and introducing ceramic materials into the creation of the watch for the first time.
| Image Credit: Brand-provided, Watches and Wonders official website
| Editor: Zhu Ruoyu
