Swiss Watch Industry Study 2014
The Deloitte Swiss Watch Industry
Study 2014
Changing times
Foreword
Welcome to the third Deloitte Watch
Industry Study. Building on the success of the last two editions, more than 50 senior industry executives participated in this year’s study through an online survey or personal interview. The study highlights the views of watch company executives on the key challenges and opportunities facing the Swiss watch industry.
15 09 14
Geneva
SMI
DAX
FTSE
2 missed calls
3 new messages
+0.62
+0.21
-1.67
Growth has been one of the defining features of the watch industry. But while many remain optimistic for growth over the next 12 months, weakening foreign demand is perceived as a significant risk.
While the outlook is not as optimistic as it has been in the last 2 years, notably for
China, new opportunities are expected in developing markets such as India and
Indonesia, with European and US markets also strengthening. Product innovation and high end watches continue to be a key focus.
The buzz around smartwatches has been building momentum with new developments in functionality and content continually being introduced, each with the potential to be ‘the next big thing’.
The rapid pace of adoption of social media as a primary communication forum within the watch sector has been an interesting evolution in this industry.
I wish you an interesting read and welcome your feedback.
Howard da Silva
Consumer Business Leader
2 | The Deloitte Swiss Watch Industry Study 2014 Changing times
Contents
Executive summary
3
Industry outlook and demand
5
Overall outlook remains positive 5
Europe is back 5
Swiss sales to foreign tourists to continue growing 6
High-end segment continues to drive expectations 7
Mechanical watches win export share 8
Challenges and risks
9
Overall risk outlook 9
Availability of qualified labour remains a challenge 10
Availability of parts and movements challenging as well 11
Business strategies
14
New product trends 14
Study 2014
Changing times
Foreword
Welcome to the third Deloitte Watch
Industry Study. Building on the success of the last two editions, more than 50 senior industry executives participated in this year’s study through an online survey or personal interview. The study highlights the views of watch company executives on the key challenges and opportunities facing the Swiss watch industry.
15 09 14
Geneva
SMI
DAX
FTSE
2 missed calls
3 new messages
+0.62
+0.21
-1.67
Growth has been one of the defining features of the watch industry. But while many remain optimistic for growth over the next 12 months, weakening foreign demand is perceived as a significant risk.
While the outlook is not as optimistic as it has been in the last 2 years, notably for
China, new opportunities are expected in developing markets such as India and
Indonesia, with European and US markets also strengthening. Product innovation and high end watches continue to be a key focus.
The buzz around smartwatches has been building momentum with new developments in functionality and content continually being introduced, each with the potential to be ‘the next big thing’.
The rapid pace of adoption of social media as a primary communication forum within the watch sector has been an interesting evolution in this industry.
I wish you an interesting read and welcome your feedback.
Howard da Silva
Consumer Business Leader
2 | The Deloitte Swiss Watch Industry Study 2014 Changing times
Contents
Executive summary
3
Industry outlook and demand
5
Overall outlook remains positive 5
Europe is back 5
Swiss sales to foreign tourists to continue growing 6
High-end segment continues to drive expectations 7
Mechanical watches win export share 8
Challenges and risks
9
Overall risk outlook 9
Availability of qualified labour remains a challenge 10
Availability of parts and movements challenging as well 11
Business strategies
14
New product trends 14