- High net-worth individuals (HNWIs) are continuing to show a strong interest in Rolex and Omega, with demand booming in the US, the UK and Asia.
- According to Omega owner Swatch Group and Watches of Switzerland, the demand for luxury Swiss timepieces is returning to pre-pandemic levels.
- Both firms predict even stronger sales outcomes for the remainder of 2023, into 2024.
The largest UK retailer of Rolex watches, Watches of Switzerland Group, and Swatch Group have indicated that the international demand for luxury Swiss timepieces is still strong despite the rising global prices.
Watches of Switzerland experienced an 18% boost in sales. The UK retailer said that the current demand for luxury timepieces has surpassed pre-pandemic levels and is predicted to remain strong throughout 2023 despite the price rise of many major watch brands.
According to Watches of Switzerland, international travel to Thailand and Macau resulted in increased sales from HNWIs. Domestic sales in Switzerland rose by 50% and there was substantial growth in Italy, Spain and France.
Watches of Switzerland reported sales of $2bn for the period ending April, which aligns with what analysts had expected. The firm reiterated its prediction for the financial year 2024.
Nick Hayek, CEO of Swatch Group, stated that revenue could reach a new record this year driven by demand in the US and China after shares increased by approximately 7% in the first half of 2023.
Hayek reported in an interview that demand for more economical watches was still strong in the US and Asia, while observing that China’s demand for luxury timepieces had yet to recover fully.
According to Hayek, the demand from the US and the UK in all timepiece price categories caused sales per Swatch store worldwide to increase by 30%, resulting in a revenue increase of 40% for in-store sales.
The company’s half-year report states that there are excellent opportunities for growth in the second half of 2023 but acknowledges that the unfavourable currency environment acts as an obstacle.
HNWIs looking to invest in a timepiece from overseas luxury watchmakers should use safe money transfer methods when placing orders.
In 2023, Swiss watch exports have continued to grow despite fears that demand for luxury goods in the US might be diminishing. This growth has come after a record of around $28bn was reached in 2022, though exports to the US dropped slightly in April.
HNWIs travelling overseas to purchase luxury items will need secure international money transfer options to reliably transfer international funds.
Wealthy individuals wishing to purchase a luxury watch can use our online money transfer comparison tool to compare foreign exchange rates.
