Watches and Wonders’ verdict: to survive, the watchmaking industry banks on ultra-luxury

The Watches and Wonders Geneva exhibition has just closed its doors after a record attendance of more than 55,000 visitors throughout the week. Despite a considerable rise in the price of gold since the beginning of the year, the companies have banked on its flamboyance, offering the industry a 2025 edition that has never had so many new models laden with gold and precious stones. At Bulgari, the windows were full of jewelry watches, including fully gem-set Serpenti and Eterna models. Chopard offered an exclusive boxed set of twelve diamond watches, on a rotating system, like a precious roulette wheel; Hublot granted fans of the Big Bang - which was celebrating its 20th anniversary - a complete set of complications and an evening in its honor, with a celebrity line-up including Mbappé, Mika, Usain Bolt and Michelin-starred chefs. Hermès dedicated its year to “Temps Suspendu”, a complex mechanism that almost magically confers on the wearer the power to stop the course of time. A talent that all the great clockmakers present at the show - 60 exhibiting brands this year - would very much like to possess for the coming months, which appear to be gloomy, as the impact of the 31% US tariffs imposed on Switzerland remains unclear.

The value of the models presented this year has certainly skyrocketed, and consequently the average price of the brands. While most of them promised an increase of only a few percent, in reality, the increase in the average price would be much more significant. The absorption of US customs duties, the largest export market for Swiss watchmaking (17.2% of the market last February), would also be one of the reasons for this. Off the record, the CEOs were stunned last Thursday when the Trump administration announced the measure. Independent watchmakers said they were very affected by this decision. In fact, over the last two years, significant investments had been made to strengthen their presence in the US in regard to the number of points of sale. Curbed in this momentum, they fear harmful effects, especially since China will not recover its growth anytime soon, also being impacted by customs measures.

Desiring to increase the brand equity value, companies have capitalized on exceptional and limited-edition pieces, ensuring collectors a long-term investment. One of the most spectacular timepieces is the Solaria, developed by Vacheron Constantin to celebrate its 270th anniversary. Christian Selmoni, the brand's style and heritage director, explained to Luxury Tribune: “Solaria incorporates all facets of the brand's expertise, which required eight years of development and the filing of thirteen patents.” Another model that certainly caught the eye was the Tank à Guichets de Cartier, a new take on the brand's historic model, of which only a very limited number were produced in the late 1920s. Several variations came out this year, including a limited edition in platinum with a 200-piece production run.

It is an argument that the new generation values as a real point of desirability. A front-runner in all categories, the Patek Philippe brand continues to hold the top spot in the rankings of the most sought-after models with the Nautilus collection, some interpretations of which were completely encrusted with diamonds this year.
In our special GenZ focus at Watches and Wonders, Olivier Widmer, a student at the University of St. Gallen currently studying for a Master's degree in finance, explains:

“The younger generation looks closely at the value of a watch brand, first and foremost in terms of its heritage and branding, but also in terms of its investment value. Moreover, in a survey I conducted among the watch fan club at my university, the Patek Philippe Nautilus model is the most highly rated. The reason? Its rarity, since the manufacturer has stopped producing some models.”

The only market to maintain positive double-digit growth for watchmaking (25.2% from 2023 to 2024) remains India, which is attracting the industry's full attention. Several of the country's major players were present at the show and gave their views in various exclusive interviews with Luxury Tribune, including Nailesh Khimji, director of the Khimji Ramdas Group, who discussed the new business opportunities available to the watchmaking sector in the country.

According to him, emerging cities known as “B-Cities” such as Pune, Ahmedabad and Hyderabad are experiencing strong demographic and economic development. It is in this context that the Khimji Group, one of the oldest authorized Rolex dealers in Oman, has chosen some of these megacities (with a population of between 7.5 and 10 million in 2024) to open its first boutiques in the country.

India still only accounts for around 1% of the 26 billion francs of Swiss watch exports in 2024. But its potential is immense: it is now the fastest growing economy in the world. “By the end of the next decade, India could be among the top five watch markets for Switzerland,” says Nailesh Khimji. Another strategic opportunity highlighted by the businessman is that of training watchmakers in the country. Faced with the shortage of craftsmen trained in Switzerland, developing this skill locally would, in his opinion, be an asset in which all Swiss watchmakers should take an interest.

But will India continue to grow at this rate in 2025? When asked this question, Yashovardhan Saboo, founder and president of Ethos Watches, India's largest watch retailer, answers without hesitation in the affirmative, comparing the country's trajectory to that of China between 2003 and 2020. It anticipates annual sales growth of 12 to 14% in local currency over the next five to ten years, inviting us to judge its strength over the next decade.