Reality check for the Swiss Watch industry

I missed this one in summer last year - especially the spreadsheet is interesting:

https://www.fratellowatches.com/hav...expensive-a-closer-look-at-facts-and-figures/

Only drawback is that it doesn’t take into account the appreciation of the CHF (which must be slightly more than 50% against the EUR) over the 20-year period analyzed. But still…

A TH Monaco, for example, has increased 92% more (in EUR) than what would have been in line with “normal” cost-of-living inflation. Even taking the Fx effects into account, there’s still a huge leap that remains.

Rolex aside, I feel we’re getting close to the point where salvaging (or even increasing) your profit margin by charging higher and higher prices for the ever fewer watches you still sell, will no longer work - China included.

Someone in the CH watch industry better come up with a new strategy - or they’ll end up becoming truly artisanal companies (like they already pretend to be in their marketing… 😉) producing only a handful of ultra-luxury pieces for the global 0.1%

Price increase hasn't hit yet, my Solargraph is still £2700 at the moment...

April 2024.