We have been writing about a price increase orchestrated by Swiss watchmakers since the 1990s, and their gradual retreat from the Affordable Luxury (retail $200 to $500) and Accessible Core segments ($500 to $1,000), to focus on Premium Core and above.
While 2020 exports have been reduced to half of those of 2000, turnover has been increased by 74% over the course of 20 years. The Swiss watch industry is not collapsing: it is being “luxified” (i.e. turned into a luxury industry).
Tier 6 to 7 still represent more than 78% of the volume, but by 2019, Tier 3 and above represented 66% of the value. Essentially, 2/3 of sales of Swiss watches can be considered to involve luxury items, while 1/3 involves mass market items.
Tier 2 is expected to see the biggest growth all the way until 2025.