Will Chinese watches soon rival Swiss brands?

The global watchmaking industry has long been dominated by Switzerland, renowned for its craftsmanship, heritage and brand equity. However, as China’s economy matures and consumer preferences evolve, a quiet revolution is unfolding in the world of haute horology. Chinese watchmakers, once associated with mass production, are now crafting luxury timepieces that rival their Swiss counterparts in quality and innovation. China’s next wave of luxury watch consumers — primarily Gen Z and millennials — is driving this shift. According to a 2023 study by Vogue Business and Barclays Research, more than half of high-spending Chinese consumers aged 18 to 24 approach their purchases with a discerning, investment-minded perspective. Many now view luxury watches not merely as status symbols but as assets that hold long-term value. These younger consumers exhibit a sophisticated understanding of brand legacy and resale potential, blending an appreciation for traditional craftsmanship with modern, fashion-forward sensibilities. More than half of high-spending Chinese consumers aged 18 to 24 approach their purchases with a discerning, investment-minded perspective. This generation’s watch-wearing habits reflect broader cultural shifts. Young collectors today prioritize individuality and subtle sophistication over ostentatious displays of wealth. Timepieces increasingly serve as markers of taste rather than mere symbols of affluence. Consequently, brand narratives, artisanal detailing, and alignment with personal aesthetics have gained importance, challenging the historical dominance of Switzerland’s legacy brands. The shift began with brands like Atelier Wen, founded in 2018. Its debut collection, Porcelain Odyssey, featured porcelain dials inscribed with Chinese characters and sold out within a year. Priced at $700, these timepieces celebrated national craftsmanship. According to co-founder Robin Tallendier, Atelier Wen aims to produce “world-class watches out of China” while developing a modern design language that resonates with domestic consumers’ pride in their cultural heritage. Other independent brands have followed suit. Shenzhen-based Behrens gained recognition in 2020 with two shortlisted entries at the Grand Prix d’Horlogerie de Genève. The $5,000 Behrens Rotary watch showcased technical ingenuity inspired by early combustion engines. Similarly, Logan Kuan Rao of Guangzhou handcrafts just 10 watches annually, dedicating 18 months to each piece — a testament to the exclusivity and craftsmanship traditionally associated with Swiss ateliers. China’s rising horologists are integrating local traditions into their creations. Atelier Wen employs ancient Chinese aesthetics and guilloché techniques, crafted by Yucai Cheng, the country’s sole master artisan in this discipline. Qin Gan, a Chongqing-based watchmaker, incorporates traditional Chinese paintings into his dials. These cultural elements provide domestic consumers with a sense of identity and heritage while appealing to international buyers seeking authenticity beyond Swiss legacy brands. Despite their growing appeal, Chinese watchmakers face hurdles in establishing global recognition, namely limited brand equity and entrenched perceptions about Chinese products. Success abroad requires fostering trust, building compelling narratives, and providing after-sales service that meets international standards. Swiss watch exports to China declined by 26% YoY from January to October 2024, reflecting economic headwinds such as a fragile real estate market. At the same time, an emergent class of Chinese collectors is increasingly drawn to local brands emphasizing cultural authenticity and sustainable luxury. As younger consumers adopt a pragmatic approach to purchases, they seek timepieces that appreciate in value, mirroring broader investment trends. While Swiss watches remain coveted among traditional collectors, opportunities exist for Chinese makers to capture younger demographics. Research from Vogue Business indicates that affluent consumers increasingly favor craftsmanship, subtlety, and personal relevance over ostentatious branding. Chinese watchmakers are well-positioned to meet these demands by leveraging cultural heritage and artisanal expertise. China’s rising watch brands understand the importance of consumer engagement and digital innovation. Many are adopting virtual reality (VR) try-ons, online boutiques, and immersive marketing — strategies pioneered by established luxury groups. Collaborations with international retailers are also underway, aimed at introducing Chinese watches to Western audiences who value exclusivity and authenticity. Additionally, sustainability initiatives, such as using recycled materials and offering repair services, resonate with environmentally conscious consumers. For Switzerland, the 39% plunge in exports to China in October 2024 underscores the risks of overreliance on a single market. While demand remains robust in the U.S. and Japan, mid-range Swiss brands are struggling. To stay competitive, Swiss watchmakers may need to revisit pricing strategies, embrace digital transformation, and align with Gen Z’s preferences for authenticity and values-driven narratives.

Will Chinese watches soon rival Swiss brands?

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Published December 11, 2024

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Will Chinese watches soon rival Swiss brands?