Some industry highlights
In the 16th century, the Swiss watch and clock industry emerged in Geneva.After 1541 the French reformer Jean Calvin banned the wearing of ornamental objects and, hence, forced Swiss jewelers to rethink their business, turning to watchmaking. By the end of the century, Geneva had established a decent reputation and already by the late 18th century, Swiss manufacturers accounted for more than half of global watch production. Thus, many inventions were born, such as the first wristwatch, first quartz watch, first waterproof wristwatch, thinnest wristwatch in the world, smallest wristwatch in the world, most expensive watch and many more…
In the 20st century, the mass production of watches began, which ultimately enabled the Swiss watch industry to extend its global dominance. Product branding, the capacity for innovation as well as the tradition of its major players all have enabled the industry to remain resilient despite changing market conditions and crises.
Over the past two decades, the Swiss watch industry has experienced solid growth rates. The environment of this industry is quite complex and dynamic, with Switzerland still holding a unique position within the high-end of the industry, where the term high-end refers to watches worth more than 3’000. It is estimated that 95% of all watches worth more than CHF 10’000 are produced in Switzerland.
The figure below manifests that the majority of high-end Swiss watches represent the primary driver of growth over the past years and the high-end segment was also the least affected by the pandemic. Moreover, the figure shows the shrinking share of low-end watches, which have faced increased competition from smartwatches since the launch of the Apple Watch in 2015. In addition, the decline of low-end watches was even further accelerated by COVID-19 as this price range was impacted by cautious spending, growing competition, and less need for the “Swiss Made” label.
