The watch industry is currently facing a period of "gloom" with declining sales volumes and revenues. In 2023, Swiss watch exports dropped by nearly 10% year-on-year to a historic low, and revenues saw a 2.8% hit. Prices for secondary market watches have also fallen for 11 consecutive quarters. This slump follows the burst of the cryptocurrency bubble in spring 2023 and the ongoing post-pandemic cost-of-living crisis. Despite this, some analysts, like Luca Solca of Bernstein, note a "flight to quality," where consumers prioritize highly desirable brands, as evidenced by Rolex's continued growth, which recorded $12.1 billion in revenues last year and holds a 32% market share.
In contrast to the industry's struggles, consumer-facing watch fairs are experiencing a significant boom. A decade ago, such events were rare, but this spring alone saw at least a dozen dedicated watch events across three countries within six weeks. Examples include Watches and Wonders, Time to Watches, and Chronopolis in Geneva, as well as the Vancouver Timepiece Show, Windup Watch Fair in San Francisco, and Milano Watch Week. Many of these events, like Geneva Watch Days (launched 2020) and Windup Watch Fair (launched 2015), are recent inventions, showcasing a shift away from traditional B2B trade shows.
This proliferation is fueled by strong consumer demand for in-person experiences and direct engagement with brands. Events like British Watchmakers' Day and Windup consistently draw large crowds, with attendees eager to handle products and meet watchmakers. For instance, at Windup San Francisco, a brand received 900 raffle inscriptions for 50 watches. This trend aligns with consumer preferences, as a Deloitte study found that over 60% of watch buyers prefer in-store purchases, citing the ability to try on watches (51%) and personal interaction (44%) as primary reasons. Brands, particularly independent watchmakers, are embracing these platforms to connect directly with their audience, offering a more relaxed and hands-on experience than traditional closed-door trade shows. Milan will host its inaugural Milano Watch Week, focusing on 20 niche watchmakers like MB&F and Ressence, mirroring the success of public-facing events in Dubai and Geneva.
