The “Premiumization” of the Watch Industry Has Reached its Limits

By way of comparison, in 2015, this segment totaled 13.4 million francs for 1.5 million exported watches. At the other end of the spectrum, export volumes of watches priced between 200 and 3,000 francs have plummeted over the past 25 years, falling from 6.3 million units in 2000 to 4.3 million in 2025. This dramatic polarization confirms the resilience of the most powerful watchmakers and the ultra-high-end watch sector, particularly the independent brands most sought after by collectors.

The overall context remains fragile, however. According to the Fédération de l'industrie horlogère, exports declined by 0.7% in the first half of 2026 to 12.8 billion francs. As early as 2025, exports had already fallen by 1.7% to 25.6 billion francs, while volumes declined by 4.8%.

But on the ground, during the Geneva Watch Days (GWD)—held September 2–6, featuring 71 brands spread across various areas of the city and primarily at the Beau-Rivage Hotel and under the Rotonde du Mont-Blanc—a different narrative prevailed: that of a rebound in sales volume across categories that many brands had gradually abandoned during the major shift toward higher-end products in recent years. Value for money dominated the discourse among the executives we spoke with. “We’ve been seeing a return to volume for the past two years. This trend is replacing the one where the high-end watch industry drove the market,” says Niels Eggerding, CEO of Frédérique Constant (Citizen Group). “Consequently, since 2025, we’ve worked extensively on the efficiency of our production lines, and today the brand is experiencing double-digit growth. We’re gaining market share thanks to our excellent value for money and the perceived value of our models, which range in price from 750 to 3,000 Swiss francs.”

The same message was echoed by Gallet, which celebrated its rebirth on Thursday, September 3. Acquired by Breitling after several decades of inactivity, this brand—now celebrating its 200th anniversary—is making its arrival on the market with a very clear ambition: to target a price range primarily between 2,500 and 4,000 francs. “This is a segment that had been abandoned by the brands, not by the customers,” says Erwan Rossignol, CEO of Gallet. “Demand is very strong for affordable watches.” The Alpina brand, also part of the Citizen Group and led by Oliver van Lanschot Hubrecht, confirms: “Our price positioning between 900 and 2,500 francs allows us to grow by around 10% per year, and that’s what we’re also projecting for 2027. The sporty style of our watches, designed for outdoor activities, is very popular—especially our solar-powered watch, which is selling out very well.”

Even more surprising is that this battle for volume isn’t limited to brands priced under 3,000 francs. Bulgari (LVMH Group), which has two particularly strong pillars—Serpenti and Octo Finissimo—and which presented two Finissimo models at the GWD created in collaboration with independent watchmaker Vianney Halter, also intends to increase its production. Jonathan Brinbaum, general manager of Bulgari watches, explains, “Our goal is to ramp up production of watches with a competitive entry price to maintain production volumes and attract a broad, young clientele.” Of course, Geneva Watch Days is traditionally geared more toward collectors, which is why we’re presenting two Octo Finissimo capsule collections in collaboration with watchmaker Vianney Halter. We must continue to surprise and innovate. Our ambition is strong; by 2027, we aim to continue outperforming the market.”

Increasing sales volumes requires markets capable of absorbing this demand and a broader customer base. Niels Eggerding of Frédérique Constant confirms: “The markets experiencing explosive growth for the brand are the United States, India, Mexico, Italy, and the United Kingdom. In the U.S., we’ve opened 300 retail locations in two years! The Citizen Group has subsidiaries in these regions, and today, we can finally leverage the Citizen and Bulova brands without competing with them, by offering a more high-end approach. For example, we’re launching a watch with a La Joux-Perret manual-winding movement, in a very beautiful design, for 2,000 Swiss francs; a watch that has just been nominated for the Grand Prix de l’Horlogerie de Genève.  No other brand has managed to do this. Why? The La Joux-Perret manufacture belongs to the Citizen Group, so we can benefit from certain overall advantages,  but we must also acknowledge that we mark up our products less than many other brands!”

According to Oliver van Lanschot Hubrecht, CEO of Alpina, “India is a very dynamic market. The reception of our watches there has been exceptional for the past three years, and things are moving very quickly. Customers’ understanding of the watch industry is impressive. It’s therefore a very promising market, just like the United States, where our affordable prices appeal to customers. In 2027, we plan to expand into other countries, such as Vietnam, Mexico, and Bulgaria, among others.”

A more affordable price point and high perceived value are the two pillars for many brands today in reaching a clientele that the industry desperately needs to renew its base. In this regard, the Dennison brand—founded in the United States and acquired by Toby Sutton two years ago with the goal of revitalizing its vintage style reminiscent of the ’60s and ’70s—is experiencing explosive growth. Emmanuel Gueit, the renowned designer behind the Royal Oak Offshore and now in charge of Dennison’s design, explains: “Our strength comes from our very affordable price range, which starts at 500 francs. Those who immediately embraced the concept are Gen Z—25-year-olds who were drawn to the vintage design, our semi-precious stone dials, and, of course, the very affordable price. But today, all types of customers are buying from us. Many high-end watch industry enthusiasts and owners of very prestigious brands wear a Dennison when they’re out and about. They love the style, feel more secure, and aren’t afraid of having it stolen. If that happens, for 500 francs, they have no qualms about buying a new one—and without having to spend years on a waiting list!”

To attract new audiences, a strong style is essential. But it must be clear and immediately understandable. Erwan Rossignol of Gallet explains: “The key is that the collections are easy and quick to understand. That’s why we offer only four lines and eleven different case designs. Since all the straps are interchangeable, this results in a wide variety of 150 models. This is a fundamental point for us, and retailers have been won over by this concept.”

Growing sales volume is essential for the Swiss watch industry and its survival. However, the reality for high-end watch brands—which are well-represented at GWD—is different. The pool of buyers isn’t renewing itself fast enough, and geographic expansion—once symbolized by China—can no longer compensate for this. Offering a more innovative product, better positioned in terms of price, that can appeal to both male and female customers and stand out in terms of style is the Holy Grail for all brands in the watch industry. “Premiumization,” which had previously been the focus of mid-range brands, is therefore no longer the panacea for profitability. The battle now centers on market share

But one issue looms large for brands with only a few hundred clients: how to attract and retain them.

At the very top of the pyramid, the economic dynamics are radically different. At De Bethune, where production volumes are deliberately limited, the new CEO, Antoine Pin, explains: “Sales are performing well. The question is more about how to manage demand over the long term.” His job involves, in particular, optimizing the production chain, determining which pieces are delivered to which customers, and anticipating potential crises early enough to protect an organization in which artisans and talented craftsmen are a rare resource.

But De Bethune also seeks to protect itself against the other consequence of the explosion in the value of watches: the arrival of buyers motivated solely by speculation. “There is, of course, a segment of collectors and clients who buy primarily as a financial investment. That is not the clientele we prioritize at De Bethune. We favor a different kind of relationship. You’re not buying a product; you’re not buying an experience; you’re buying a journey with the brand. Some clients take an interest in the manufacturing process, engage with the artisans, and write about the watch industry. They’re almost partners of the house.”

At this level of price and scarcity, value rests on a rare concept: belonging to a philosophy of time. Antoine Pin concludes: “It’s a shared elevation. We must know how to nurture this relationship and help it grow. It’s a fundamental trend we’re observing. De Bethune was founded 25 years ago with the guiding principle of reimagining the art of watchmaking through the lens of 21st-century artisans, while honoring the history of the watch industry. The concept of time is the deepest connection humans have with the earth; it is the expression of our humanity, and in this sense, de Bethune contributes to the exploration of the universe through its research.”