Swatch takes an unexpected approach in the luxury watch market

Morgan Stanley and LuxeConsult release an annual report on the state of the Swiss watch industry, ranking the top 50 Swiss watch companies each year. Rolex once again emerges as a big winner, with a revenue growth of 9%, making it the first company to surpass 10 billion francs in revenue, far ahead of the second-placed Cartier, which has over 3 billion francs in revenue. Rolex's share of the global retail market reaches as high as 30%, highlighting the increasing polarization in the luxury watch market, more pronounced than ever. Thirteen brands account for 75% of Swiss-made watches' total sales, while 25 brands dominate 90%.

Rolex's 30% market share is even greater than the combined total of the next five largest brands: Cartier (8%), Omega (7%), Patek Philippe (6%), Audemars Piguet (5%), and Richard Mille (3%). However, in terms of growth rate, the largest increase in 2023 was seen by Swatch. Since the launch of the MoonSwatch in 2022, it has been the fastest-growing Swiss brand for two consecutive years. Swatch's revenue surged by 63% last year, reaching 660 million francs. Sales have more than doubled since 2021, when annual sales were only 214 million francs.

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