The 2024 Watches & Wonders Geneva event, held against a backdrop of softening consumer spend on the watch sector, displayed an unanticipated level of resilience within the luxury watch industry.
Attendance records were shattered as over 49,000 visitors, including 5,700 retailers and 1,500 journalists, congregated to witness the unveiling of new products by 54 distinguished watchmaking brands.
This surge in engagement, coupled with a significant uptick in retailer appointments and client orders, starkly contrasted the broader market trends suggesting a year of cautious optimism and possible economic softening.
As we have reported, the Swiss watch industry concluded 2023 on a triumphant note, achieving a record $29.2 billion (26.7 billion Swiss francs) in sales. However, a significant downturn became evident by March 2024, when Swiss watch exports suffered their biggest decline since 2020, plummeting by 16% to $2.1 billion (2 billion Swiss francs).
This stark decrease was driven largely by a sharp drop in demand from key markets, with exports to China and Hong Kong decreasing by 42% and 44%, respectively, falling to levels reminiscent of the March 2020 industry standstill during pandemic lockdowns.
Despite these challenges, the vibrant activity at Watches & Wonders Geneva painted a picture of an industry robustly withstanding economic headwinds, poised to adapt and innovate. Here are some trends Jing Daily observed while on the ground:
Mastery and innovation in craft#
This year’s Watches & Wonders spotlighted traditional maisons doubling down on their core competencies, merging technical prowess with refined aesthetics. Brands showcased their mastery through both groundbreaking innovations and revivals of iconic models.
IWC Schaffhausen introduced its first secular perpetual calendar, a testament to precision engineering. This timepiece not only manages the Gregorian calendar’s complex leap year cycles but does so with an astonishing moon phase accuracy that won't need adjusting for 45 million years.
Jaeger-LeCoultre’s Duometre returned, featuring the brand’s Dual-Wing system designed to enhance power reserve efficiency and precision amid intricate complications.
Piaget broke records again with the Altiplano Ultimate Concept Tourbillon, now the world’s thinnest watch with a tourbillon of just 2mm thick, underscoring Piaget’s continued leadership in ultra-thin watchmaking.
Montblanc extended its Iced Sea Collection with the Iced Sea 0 Oxygen Deep 4810, a model that boasts water resistance up to 4810 meters, reflecting the height of Mont Blanc and emphasizing the brand’s adventurous spirit.
Iconic models reinvented#
Several brands have reimagined their signature models, blending traditional craftsmanship with modern innovation.
Cartier rejuvenated its line with the revamped Santos de Cartier featuring a dual time display and the iconic Tortue, which has been a symbol of the brand’s elegant design since its debut.
Meanwhile, Tag Heuer celebrated 55 years of the Monaco with the Split-Second Chronograph. This model combines grade-5 titanium and sapphire in its construction, offering both aesthetic allure and lightweight wearability.
And finally, Ulysse Nardin introduced the Freak S Nomad, continuing the narrative of this groundbreaking series with a design that pushes traditional boundaries, mirroring the brand’s commitment to innovation and exploration.
Precious metals as a strategic upgrade#
In response to rising gold prices and a growing preference among collectors for valuable materials, luxury watch brands are increasingly incorporating precious metals into their designs. This trend not only caters to the aesthetic and luxury demands of the market but also positions watches as a viable alternative asset class.
Rolex has significantly enhanced its Deepsea lineup with the introduction of the first dive watch crafted in 18 ct yellow gold. This model is decked in a striking blue and features an innovative combination of materials: gold paired with elements in ceramic and RLX titanium.
Meanwhile, Vacheron Constantin’s new collection in the Overseas line showcases watches entirely crafted in precious metals, adding an extra layer of luxury and value retention to its well-regarded designs.
As the luxury watch industry adapts to a more investment-focused consumer base, the integration of precious metals is a smart move that combines traditional appeal with modern financial savvy.
Amid economic uncertainty and decreasing demand in key markets such as China, established watch maisons are strategically emphasizing their core competencies and iconic models.
The decline in Chinese consumer spending necessitates a shift in focus towards cultivating relationships with loyal VIP customers and underscoring the long-term value of luxury timepieces.
Investing in time-tested models not only offers a safer bet for brands and consumers alike in times of cautious spending but also serves to reassure and retain discerning collectors looking for value and exclusivity.