Our competitive advantage

the Luxury Watch market has a strong track record of growth

The luxury watch industry benefits from a well-established and resilient market structure, supported by a track record of consistent long-term growth, sustained investment, and elevated innovation.

The Group estimates global retail sales of luxury watches were approximately £50.3 billion in calendar year 2025. This is based on the estimated retail value of Swiss luxury watches (Swiss exports and the Swiss market), repairs and services, and the contribution from non-Swiss luxury watch brands.

The global luxury watch market has delivered long-term growth, with a 25-year CAGR of 4.9% (2025 v 2000) benefiting from a well-established and resilient market structure, supported by a track record of sustained investment and elevated innovation. Of the 4.9% growth in luxury watch exports, +4.1% related to increases in average selling prices (ASP).

Watches at the luxury end of the market have outperformed lower priced segments and represent 95% of the value of global Swiss watch exports in calendar year 2025.

The US has seen significant increases in Swiss watch exports in recent years, while the UK has remained ahead of the global average. This has been supported by continued investment and elevation of luxury watch retailing in the US market. In contrast, the absence of VAT‑free shopping in the UK continues to weigh on international tourist spend, with some demand directed to markets where tax‑free incentives are available.

global BRANDS and SUPPLY-DRIVEN GROWTH

Luxury watch brand owners are made up of major independents, large groups and smaller independents, as can be seen below. Our Group provides a large selection of luxury watches covering a wide range of prices and consumer preferences, including the largest and best known brands alongside smaller independent brands.

We stock confidently, which provides our clients with a stronger range and availability. We have regular dialogue with our brand partners on current trends, often leading to the development of exclusive partnerships and/or first to market timepieces.

Prevalence of Selective Distribution Agreements

In most markets, distribution of luxury watches takes place under Selective Distribution Agreements; strict, legally binding contracts entered into with brands on a point‑of‑sale basis. These typically focus retailers by geography and ensure retailers maintain high presentation standards. Selective Distribution Agreements enable brands to manage the number of points of sale and apply qualitative criteria to retailer approval. Product presentation and client experience are closely monitored by brand owners.

Globally, the retail market for luxury watches is fragmented, predominantly comprising of a large volume of small retailers. However, consolidation to fewer, better points of sale has been an ongoing trend, particularly in the US market. This trend provides an opportunity for our Group, as we continue to invest in our showroom portfolio and client experience capabilities to remain a trusted partner to luxury watch brands.

loyal, Diverse, multi-generational cLIENT base

Luxury watches attract a set of clients who can become repeat clients, spanning age, income groups and genders. Over the years, there has been an increasingly positive impact from digital and social media appealing to a younger market. The Group invests in digital marketing to attract clients and stimulate interest in the category.

Our showroom design, location, marketing and unique client service, appeal to a broad demographic audience.

In FY25, the Group acquired the Hodinkee business, the pre-eminent global digital editorial content provider and gateway for luxury watch enthusiasts. Hodinkee currently has 56.1 million views per year and 1.8 million social media followers, having delivered year‑on‑year growth of 17% and 20%, respectively, in FY26.

continuous PRODUCT INNOVATION and advancement

Luxury watches are characterised by a focus on product innovation and advancement and are normally introduced at prestigious watch fairs in Switzerland. In the US and the UK, there is a strong preference for sports models with the key brands consistently investing to ensure the highest degree of technical (diver, aviation and chronograph) specifications.

New product innovations are showcased by luxury watch brands at watch fairs such as Watches and Wonders in Geneva. This year, product innovation focused
on evolution rather than revolution, including the revival of historical product from the likes of Cartier (Roadster) and Tudor (Monarch). A number of brands shifted focus towards dial innovations, and from a colour perspective, a continued growth in green dials, but also a noticeable trend in ‘Earth’ tones.

geograPhical markets

The Group operates in the US and UK markets, two of the major Swiss watch markets.

On a per capita basis, the UK market has outperformed the US market and all major European markets since 2000. The UK market has the highest per capita retail spend by domestic clients on luxury watches. We believe the differential to other markets reflects retail investment, not consumer behaviour, creating an opportunity to successfully replicate our model in other geographies and building on the success we have delivered in the US to date. The US market is underdeveloped, providing significant growth opportunities for the Group.

the US market

After a period of underinvestment in the US leading up to 2018, the market has performed strongly and is today the largest global market for Swiss watch exports, overtaking China in 2021. The Group estimates retail sales of luxury watches reached $10.1 billion in calendar year 2025.

The US market is led by Rolex with strong market positions of Cartier, Patek Philippe, Audemars Piguet, OMEGA, TUDOR, Breitling, TAG Heuer, IWC Schaffhausen, Jaeger-LeCoultre, Longines and Vacheron Constantin. Additionally, there are also relatively strong market positions for smaller independent brands such as MB&F, Bovet and H. Moser & Cie.

US retail distribution has consolidated towards larger showroom formats in major shopping areas, and retail investment by the Watches of Switzerland Group and others has increased. The US market is predominantly domestic, although domestic tourism (e.g. to Florida or Las Vegas) is significant. In recent years, Rolex, Patek Philippe and other brands have been rationalising distribution, reducing the number of agencies to a smaller number of higher-quality retailers.

Despite this consolidation at the top end of the market, the broader US luxury watch landscape remains highly fragmented, with c.70% of distribution served by retailers operating one, two or three stores, while the remaining c.30% is concentrated among key multi‑door operators including the Watches of Switzerland Group, Bucherer and The 1916 Company.

In the period 2000 to 2025, luxury Swiss watch exports to the US increased at a CAGR of 4.4%, accelerating to 11.6% from 2019 to 2025, following the Watches of Switzerland Group’s entry into the US market in 2018.

The US remains the world’s largest market for luxury watches. Strong discretionary spending is underpinned by rising wealth generation across the country, alongside increasing consumer interest in the category.

Since entering the market in 2018, we have steadily developed our showroom network, which now serves clients across a broad range of locations, as shown opposite. This creates a strong platform for continued expansion in a market where we see significant long-term growth potential.

the UK market

The UK is the fifth largest market globally for Swiss luxury watch exports. The Group estimates retail sales of luxury watches amounted to £3.6 billion in calendar year 2025.

The UK market has been resilient, a testament to a well-invested, disciplined multi-channel market and a highly engaged domestic clientele, which has typically had a preference for the sports luxury watch category.

While the removal of VAT‑free shopping on 1 January 2021 reduced international tourist spending in the UK luxury watch market, the subsequent increase in domestic demand has helped to support the category’s continued strength. For the Group, tourist‑driven sales in the UK accounted for 33% of revenue in FY19, compared to less than 5% today, highlighting a significantly more domestically‑driven revenue mix.

In the period 2000 to 2025, luxury Swiss watch exports to the UK increased by a CAGR of 7.1%.

The UK market is made up of national groups, independent jewellers, luxury department stores and boutiques directly operated by the brands. It is led by Rolex, with strong market positions of Patek Philippe, OMEGA, Cartier, Breitling, TAG Heuer, TUDOR, IWC Schaffhausen, Longines and Tissot.

pre-owned watcH market

The pre-owned market is a positive development for the authorised retail market. It provides liquidity and value preservation for luxury watches. This is a growing sector due to the supply of certain products being unable to meet demand in the first hand market and for collectors given that the vast majority of luxury watch references are no longer in production. For many collectors, rarity and historical significance are increasingly more important than waiting lists for current production models. Certain pre-owned products sell at prices above RRP depending on brand, availability and scarcity.

The market is made up of both retailers operating pre‑owned and trade‑in models and dedicated online marketplace players. The Watches of Switzerland Group is an active operator in the pre‑owned segment. The 2020 acquisition of Analog:Shift brought specialist expertise in vintage and pre‑owned curation, sourcing and authentication into the Group. With the support of our scale, showroom network and service‑centre capabilities, we are well positioned to capitalise on growth in the category and deliver a consistent, high‑quality client experience across channels.

In 2023, Rolex launched the Rolex Certified Pre‑Owned programme, offering clients the opportunity to purchase pre‑owned watches from official authorised retailers that are certified as authentic and supported by a Rolex‑backed two‑year warranty. This has broadened the appeal of the pre‑owned market, while also enabling Rolex to take greater control of the customer experience, including among clients who may previously have been hesitant to purchase pre‑owned items.

The Watches of Switzerland Group has established a leading position within the Rolex Certified Pre‑Owned programme. The programme is now available across all the Group’s Rolex agencies in the US (excluding the recently acquired Deutsch & Deutsch showrooms), and in 30 showrooms across the UK, including a dedicated floor within the flagship Rolex boutique on Old Bond Street, London, supported by our online offering.

AFTER-SALES and SERVICING

After‑sales and servicing complements the primary market for luxury watches and is central to protecting and extending the life and value of the products. It plays an important role in maintaining brand standards and delivering a consistent, high‑quality client experience throughout a watch’s lifetime.

The market is primarily served by traditional multiple and independent retailers, alongside brand in‑house resources. Independent research indicates that after‑sales and servicing represents a multi‑billion‑dollar global market1, supported by long‑term ownership trends, a growing installed base of luxury watches and increasing consumer focus on product care and value retention. Growth in the sector continues to be constrained by industry capacity and the availability of authorised servicing infrastructure, and the after‑sales and servicing market has not kept pace with the growth in new watch sales.

Demand for servicing continues to increase over time as more luxury watches reach their first and subsequent service intervals, reflecting long ownership cycles and ongoing maintenance requirements. Independent research also points to increasing client preference for authorised service centres, driven by the importance of technical expertise, genuine parts and service reliability, reinforcing the value of the Group’s continued investment in this area.

The Group continues to invest in the expansion of its after‑sales and servicing offering in both the US and the UK, supported by dedicated service centres in each market and a team of 65 qualified watchmakers across the Group.

After‑sales and servicing also contributes to the circular economy through the maintenance, repair and longevity of luxury timepieces.

luxury jewellery

Our luxury watch business is complemented by a strong and growing luxury jewellery offering.

The US and UK markets continue to grow, as illustrated in the chart below, and are among the largest globally on a per capita basis for luxury jewellery.

The US remains one of the most important markets globally, supported by a large and affluent consumer base, a strong culture of gifting and self‑purchase, and a well‑established luxury retail environment. As a result, the US continues to be a priority market for the Group’s luxury jewellery strategy.

At a global level, overall jewellery demand has continued to grow over time. Within this, industry research indicates that luxury jewellery has materially outperformed the broader fine jewellery market over the past decade, supported by a structural shift in demand towards higher-value and branded propositions.

While demand continues to evolve, the global jewellery market remains highly fragmented, with a significant proportion of sales still accounted for by unbranded players. This highlights the scale of the opportunity for established luxury brands and trusted retail partners as consumer preferences increasingly shift towards quality, provenance and trust.

luxury branded jewellery

The luxury jewellery market has been characterised by a shift towards branded products, supported by stronger growth in the branded segment relative to the wider category.

Within the broader category, the growth of luxury branded jewellery remains a defining structural trend, aligning closely with the Group’s core capabilities and representing a key strategic growth pillar.

Despite the strength of leading maisons, the luxury jewellery market remains structurally dispersed, with even the largest brands accounting for relatively small shares of global sales1. This creates a compelling environment for curated, multi‑brand retail, where scale, expertise and long-standing client relationships are key differentiators.

As with luxury watches, branded jewellery is characterised by brand-led demand, controlled distribution and long-term client relationships. The leading jewellery maisons are built on enduring iconic collections, often developed and refined over several decades, reinforcing brand equity and client loyalty over time.

Industry analysis also highlights a positive relationship between scale and profitability within luxury jewellery, underlining the advantages of established global brands and disciplined distribution models.

Jewellery allows the Group to broaden its client base, with higher purchase frequency and a wider range of price points, supporting client acquisition and repeat engagement.

The Group partners with a curated portfolio of leading luxury jewellery brands, including Roberto Coin and Messika, and has introduced David Yurman to the UK market.

The Group’s strategy is to continue to expand its portfolio of luxury jewellery brands, often with exclusive or semi‑exclusive representation within a particular geography, supported by the Group’s scale, retail expertise and established client relationships.

In FY26, the Mappin & Webb Luxury Jewellery boutique in Manchester opened, retailing a number of brands on an exclusive basis outside London.

In the US, the Group continues to build its position following the acquisition of exclusive distribution rights for the Roberto Coin luxury jewellery brand across the US, Canada, Central America and the Caribbean.