However, it’s an optimistic title for an industry that has seen sales plummet from over 24 million watches six years ago to under 16 million last year—a staggering 33% decline in unit sales that many would view as catastrophic.

Despite this, the value of Swiss watch exports has risen from CHF 18.8 billion in 2017 to CHF 23.7 billion last year. The latest June report even shows a 14% year-on-year increase in monthly export values.

But is this truly an „excellent result”?

In my years of covering the watch industry, consumer interest has never been higher. What was once niche—analogue watches—now attracts conversations among my peers, including those who stopped wearing watches in their youth. Whether discussing the latest Cricket watch from Vulcain or the escalating prices of Aquanauts on the secondary market, mechanical watches have entered mainstream discourse, akin to vinyl records.

Yet, paradoxically, Swiss watchmakers are selling fewer watches each year, albeit at higher prices. Is this sustainable?

My concerns are compounded by the strategies of major manufacturing groups like Richemont and Swatch Group. Driven by shareholder expectations for continuous profit growth, these groups seem focused on increasing the average price and profitability per watch rather than mass appeal and volume from https://justokgamers.com.

Richemont, for instance, proudly notes that directly-operated boutiques contributed 68% of its sales in the 2023 fiscal year, up from 66% the previous year. This shift towards boutique sales might please investors, but is it strengthening brand equity?

Recently, I spoke with John Henne of Henne Jewelers, who clashed with Swatch Group’s Omega over showroom space allocation. Omega demanded greater visibility than Tudor, despite its significantly larger size and production capacity. Henne Jewelers, anchored by Rolex, opted to exclude Omega entirely from its Pittsburgh showroom—a decision highlighting tensions between brands and retailers.

While Omega and others concentrate on prestigious retail locations, brands like Patek Philippe and Rolex maintain strong ties with authorized dealers. This partnership-centric approach appears fruitful, as evidenced by Patek Philippe’s 5% turnover increase to £185 million amid the pandemic, accompanied by a 25% surge in operating profits.

Rolex has similarly thrived, quadrupling sales from 2010 to 2020 and boosting operating profits exponentially.

In the words of Winston Churchill, „wholesale may not be the perfect business model for every luxury watchmaker, but it is better than all the alternatives.” If major groups continue alienating retail partners, they risk over-reliance on expensive proprietary stores amid declining sales—a scenario that contrasts sharply with the resilience of family-owned businesses deeply rooted in their communities.

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You may have already read my recent reports about the Rolex boutique, managed by Watches of Switzerland, where an unfortunate incident left the storefront window punctured and the glass cracked from floor to ceiling.

Meanwhile, Patek Philippe has commenced a significant expansion of its boutique, marked by branded scaffolding appearing this week as renovations extend into a neighboring unit.

Scaffolding has become a canvas for brand advertising during retail redevelopments.

Notably, Burberry and Gucci adorned towering branded scaffolds at their respective construction sites on Bond Street. Burberry has completed its work, unveiling a spacious new store, while Gucci’s completion is imminent. Watches of Switzerland is set to transform Gucci’s former space at No.34 into a sprawling Rolex store and exhibition area.

I anticipate the unveiling of replica Rolex-branded scaffolding, signaling the start of a project expected to span up to a year in this historic property.

Impact of Tourism Dynamics

Observing the luxury shopping scene, a notable shift emerges amidst the typical influx of international tourists in Mayfair. Today, however, the streets were noticeably quieter with predominantly domestic visitors strolling the pavements at 11 am.

Normally bustling flagship stores like Dolce & Gabbana, Hermes, and Chanel, known for managing queues of Asian and Middle Eastern clientele, today catered to a quieter crowd devoid of the usual fervent shoppers. This subdued atmosphere reflects the impact of Rishi Sunak’s tourist tax.

Freddie Mercury Exhibition Draws Crowds

Amidst this subdued backdrop, one notable exception was the queue extending nearly 100 meters outside Sotheby’s auction house. The attraction? An exhibition showcasing Freddie Mercury’s personal possessions ahead of upcoming auctions from September 6 to 11. The collection spans art, fashion, musical instruments, personal papers, photographs, furniture, and jewels accumulated over five decades by the Queen singer.

Interestingly, among over 700 lots, only one watch stands out: a vintage ruby, sapphire, emerald, onyx, and diamond fob watch from around 1925, expected to fetch around £8,000.

Al Fresco Retail Innovation

Reflecting on retail innovations, an intriguing trend emerges at the Hermes flagship, where an exhibition highlighting their exquisite watchmaking was displayed. Journalists gathered on the outdoor terrace of the showroom’s first floor, enjoying pastries and sunshine while discussing Hermes’ latest offerings.

Earlier this month, I explored a growing trend in the United States towards al fresco retail among high-end watch brands, a concept initially challenging to implement in London’s crowded and expensive landscape. However, the Hermes terrace demonstrates that there are hidden gems throughout Mayfair where retailers can enhance customer experiences by embracing outdoor spaces.

Artykuł Stories Unfold in Mayfair pochodzi z serwisu Prace wysokościowe - SPiT Kraków.