Niels Eggerding, CEO of Frédérique Constant: “Maintaining accessible prices has put our business model under pressure”

In a watch market where prices keep rising and demand keeps sinking (with Swiss exports having declined by 4.8% in volume in 2025) —Frédérique Constant is pursuing a counter-cyclical strategy: offering mechanical complications at moderate prices. Owned since 2016 by the Japanese group Citizen Watch Co. Ltd., which generated €1.9 billion in revenue in 2025 (+2%) and also owns Bulova, Alpina Watches, and Ateliers deMonaco, the Geneva manufacture positions most of its collections between 1,000 and 3,000 Swiss francs—favoring volume and value for money over margin expansion. Among its flagship successes is the launch of a perpetual calendar priced under 10,000 Swiss francs.

This year, at Watches and Wonders Geneva, the brand’s booth is expanding despite costs starting at 1,800 Swiss francs per square meter for independent exhibitors. It will notably unveil three new versions of its iconic model, the Classic Manufacture Worldtimer, featuring a 72-hour power reserve and bringing the number of in-house developed calibers to 35 since the company’s founding.

While 90% of its production remains composed of “accessible” watches, the question of profitability and the balance of its economic model remains. Niels Eggerding, CEO for nearly ten years, spoke to Luxury Tribune a few weeks before the fair opened.

The segment above 20,000 Swiss francs now captures most of the market’s value. How can a brand positioned at “accessible” prices continue to create value in a market that is shrinking in volume?

There are several factors that allow us to stand out in our segment. First, innovation. Then, value for money, and finally, the ability to build an attractive brand even with large volumes.

In a very tense watch market, how do you maintain prices below 10,000 Swiss francs for watches equipped with in-house calibers?

Quite simply by maintaining margins that are much lower than those of our competitors. Like many major watch brands, we source several components such as straps and cases from the Far East. But where our competitors apply margins two to three times higher to invest heavily in marketing, we believe our best marketing is the product itself.

You are increasingly developing your Manufacture collection. What share does it represent in volume and value compared to more accessible collections?

The Manufacture collection represents between 8% and 10% of our volume, which is relatively limited. However, it can account for around 25% of our revenue, illustrating how important value is. These pieces are not meant to generate volume but to create value and strengthen our watchmaking credibility. The majority of our watches are still equipped with automatic movements supplied by Sellita or La Joux-Perret, representing about 90% of our production.

How would you define Frédérique Constant’s positioning today?

We long built the brand around “affordable luxury,” but today I prefer to avoid the term, as it has become too relative and depends on individual purchasing power. I would rather describe it as premium luxury—below brands like H. Moser & Cie. or Omega in the ultra-luxury segment. Once again, this positioning is also based on our strategic choice to maintain lower margins than our competitors.

The rise in gold prices and overall inflation has forced some brands to move upmarket. What about Frédérique Constant?