Our competitive advantage

the Luxury Watch market has a strong track record

The luxury watch industry is well protected with high barriers to entry and a track record of consistent long-term growth, underpinned by sustained investment and elevated innovation.

The Group estimates global retail sales of luxury watches were approximately £48.0 billion in calendar year 2024. 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.

Luxury watches have continued to be supported by long-term increases in prices, with the average selling price (ASP) of Swiss watch exports (wholesale) generating a 24-year CAGR of +5.2% (2024 vs 2000).

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 2024.

The US has seen significant increases in Swiss watch exports in recent years, while the UK has remained in line with the global average.

The EU market has benefited from the post-pandemic increase in tourist shopping. The UK market’s removal of VAT-free shopping for tourists means that international sales have been minimal since Brexit.

The Global market experienced a period of significant demand during the pandemic, which has since normalised in 2023/24.

disciplined distribution management through Selective DISTRIBUTION agreements

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 are ordinarily limited by geography and ensure retailers maintain strict presentation standards. Selective Distribution Agreements enable brands to manage the number of points of sale and qualitative criteria on retailer approval. Product presentation and client experience are closely monitored by the brand owners.

Globally, the retail market for luxury watches is fragmented, predominantly comprised 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 provides an opportunity for our Group.

global BRANDS HAVE SUPPLY-DRIVEN GROWTH

For the total luxury watch industry, demand has increased at a faster rate than production, in part reflecting the labour-intensive nature of watchmaking and its dependence on highly skilled watchmakers in Switzerland. Long-term growth has been underpinned by increased Average Selling Prices (ASP), positive mix effects and limited volume increases.

Luxury watch brand owners are made up of major independents, large groups and smaller independents, as can be seen below. Our Group provides the largest 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 greater 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. The table below shows the breakdown of the Group’s brand partners.

loyal, Diverse, multi-generational cLIENT base

Luxury watches attract a set of shoppers, 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 of the Group 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 has 48.0 million views per year and 1.5 million social media followers.

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 UK and the US, 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.

This year saw the largest watchmaking gathering ever to take place in Geneva, Watches and Wonders 2025, where exciting new products were launched, accompanied by relevant marketing support.

Watchmakers are making greater use of strap and dial combinations to increase consumer interest.

The Group offers exclusive and first to market watch product in collaboration with a number of luxury watch brands.

geograPhical markets

The Group operates in the UK and US markets, two of the major Swiss watch markets. The below chart shows the luxury watch retail sales per capita over the past four years.

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 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 £3.4 billion in calendar year 2024.

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

In the period 2000 to 2024, luxury Swiss watch exports to the UK increased by a CAGR of 7.4%, to CHF 1.6bn in 2024.

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 and TUDOR.

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 $8.8 billion in calendar year 2024.

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

US retail distribution is in the process of consolidation towards larger showroom formats in major shopping centres, and retail investment from 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.

In the period 2000 to 2024, luxury Swiss watch exports to the US increased by a CAGR of 4.6%, with a CAGR of 12.7% in the period of 2017 to 2024 coinciding with the Watches of Switzerland Group entering the US market.

pre-owned watcH market

We believe the pre-owned market is a positive development for the 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 nearly 95% of watches are no longer in production (Source: BCG March 2023).

Research analysts believe that the pre-owned watch market will be as big as the primary one within the next ten years (Source: Deloitte December 2024). The pre-owned product often sells at prices above retail due to unavailability and scarcity.

The market is made up of pre-owned (purchase or trade-in watches to sell on) and online marketplace players.

In 2023, Rolex launched the Rolex Certified Pre-Owned programme offering the opportunity to purchase from official authorised retailers, pre-owned watches that are certified as authentic and come with a Rolex backed two-year warranty. This has opened the pre-owned market up to clients who may have previously been nervous about purchasing pre-owned items. We see Rolex Certified Pre-Owned as a significant opportunity for the Group and at the financial year-end we showcased Rolex Certified Pre-Owned in 25 showrooms in the UK, including a dedicated floor at the recently opened flagship Rolex boutique on Old Bond Street, London, and in all 21 of our Rolex agencies in the US, alongside our online offering.

AFTER-SALES and SERVICING

After-sales and servicing complements the first-hand market for luxury watches and is critical in protecting and prolonging the life and value of the products.

The market is primarily supported by traditional multiple and independent retailers and brand in-house resources. After-sales and servicing represents 7% of the global luxury watch market and is very important in terms of providing a luxury client experience (Source: Verified Market Reports April 2025). The after-sales and servicing market has not kept pace with the growth of new watch sales.

The Group continues to invest in expanding its after-sales and servicing offering in both the UK and US, highlighted in FY25 by the new insurance offering launched in the US, and with the dedicated service centre floor at the recently opened flagship Rolex boutique on Old Bond Street, London.

After-sales and servicing contributes to the circular economy.

luxury jewellery

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

The US and UK markets are growing strongly and are among the largest globally on a per capita basis for luxury jewellery (Source: World Gold Council).

luxury branded jewellery

The global luxury market has seen global trends towards the branded component of the market.

We see this as a significant area of growth for the Group going forward, where we can apply our expertise gained in luxury watches to luxury jewellery. The Group partners with a number of luxury jewellery brands including Roberto Coin, Messika, BVLGARI and recently introduced David Yurman to the UK market. The Group’s strategy is to increase the number of luxury jewellery brands offered within our portfolio, in many cases exclusively within a geographical area. In FY26 we will open the Mappin & Webb Luxury Jewellery boutique, Manchester, which will include a De Beers boutique.

On 8 May 2024, we announced that the Group had acquired the exclusive distribution rights for the Roberto Coin brand in the US, Canada, Central America and the Caribbean, through the acquisition of Roberto Coin’s US associated company, Roberto Coin Inc..