For the first time since the Deloitte Swiss Watch Industry Study was launched in 2012, more watch executives are pessimistic about the outlook for the Swiss watch industry than those who are optimistic. Watchmakers are increasingly worried about the continued strength of the Franc and the weakening demand from countries such as China. Another concern is the growing competitive threat from smartwatches. Yet the future prospects are still promising, with the luxury segment leading the way. http://www2.deloitte.com/ch/en/pages/consumer-business/articles/swiss-watch-industry-study.html This is the fourth annual Deloitte Watch Industry Study. It is based on an online survey and discussions with executives, and a consumer survey which was conducted among 3,000 people in China, France, Italy, Japan, Switzerland and the US by the data collection provider Research Now. The online survey with executives was conducted between May and July 2015. A total of 51 watch executives participated.

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The Deloitte Swiss Watch Industry
Study 2015

2. Exports of Swiss wristwatches peaked
at a value of CHF 21 billion in 2014,
which makes Switzerland the world’s
leading exporter of watches in terms
of value.
The average price of exported watches
rose from CHF 310 in 2000 to CHF 730
in 2014. However, in the first half of
2015 Swiss watch exports by value
remained almost stable.
Average price of
exported Swiss
watches peaked
at CHF 730
2014:
CHF 730 2000:
CHF 310

3. The economic outlook for the Swiss watch
industry worsened substantially. 41% of
watch executives surveyed are pessimistic
about the economic outlook, whereas
only 14% are optimistic.
This is the worst result since the launch of
the Swiss Watch Industry Study in 2012.
Pessimism hits
four-year high 14%
Optimism
41%
Pessimism

4. 69%
69% of watch executives see the
strong Swiss Franc as a significant risk
to their business, up from 50% in 2014.
Another important concern is weaker
foreign demand, especially in Hong
Kong and China. 34% of respondents
expect the demand for Swiss watches
to decline in Hong Kong and China.
External risks
are back
34%
expect
decline
in demand
see strong
CHF as
a risk

5. 0 10 20 30 40 50
2015: 25%
39%
2014: 11%
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According to the survey 25% of watch executives
consider smartwatches to be a competitive
threat, up from 11% in 2014.
39% of respondents indicated that following the
release of the Apple watch, they are more aware
of the challenge from this product category.
Smartwatches taken
more seriously Consider smartwatches to
be a competitive threat
More aware of challenge
following Apple Watch

6. Our consumer survey indicates that 61%
of Chinese, 48% of Italian and 35% of
French consumers intend to buy a
smartwatch in the next 12 months.
In contrast, the percentage in
Switzerland is only 17%.
Significant
consumer interest
in smartwatches
in China, Italy
and France
61%
China
35%
France
48%
Italy
17%
Switzerland

7. Own e-boutique
Online resellers
2015:
38%
2015:
19%
2014:
13%
2013:
11%
2013:
21%
2014:
21%
On what sales channels will
you be putting most emphasis
in the next 12 months?
An increasing number of watch executives
will give more emphasis to online sales
channels in the next 12 months.
Watch companies continue to focus on
digital media in their marketing campaigns,
and social media are by far the most
important marketing channel in 2015.
The rise of
digital media

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