Business News: Swiss Watch CEOs Expect To Make Fewer Watches This Year As Economic Instability Roils Consumer Confidence

Even the biggest and most successful brands could cut back amid the uncertainty and ongoing trend of lower volumes and higher prices. Total Swiss watch industry volumes have nearly halved since 2011, according to analyst estimates by Morgan Stanley and LuxeConsult.

Rolex, the industry’s dominant player, producing more than 1 million watches a year, now accounts for about 60% of Swiss watch exports for watches priced above 3,000 CHF at wholesale, up from about 50% in 2019, according to research by Swiss bank Vontobel. The Crown also dominates the secondary market, accounting for about one-third of sales.

The average selling price of a new Rolex has climbed to about 15,000 CHF, according to Vontobel, while its production volume has slowed or even contracted slightly with volumes falling by 2% in 2024, the first decline since 2009, according to Morgan Stanley estimates. The bank expects volumes to contract further in 2025.

Rolex does not comment publicly on its production volumes but has shared details of plans to build new production facilities in Bulle, in the canton of Fribourg, that are expected to be operational by 2029, which will increase capacity.