The Swiss watch industry faces a structural contradiction. Deloitte’s 2025 study shows 38 percent of buyers prefer multi-brand stores while only 23 percent choose mono-brand boutiques, yet 41 percent of manufacturers plan to open new mono-brand locations within twelve months. The gap between customer preference and brand strategy widens as US tariffs and retail consolidation reshape the sector.
US import duties of 39 percent imposed in August 2025 hit the industry’s largest export market. The US accounted for CHF 4.4 billion in Swiss watch exports during 2024, representing nearly 17 percent of global volume. Between January and August 2025, total export value fell just 1.0 percent year on year as brands stockpiled inventory before the tariff deadline. The duty forces substantial price increases on leading Swiss brands in America, likely dampening future demand.
Despite digital expansion across retail sectors, physical stores dominate watch sales. Over 60 percent of respondents buy watches in person. The reasons remain tactile: 51 percent cite trying on watches as the main driver, while 44 percent value personal advice. Even Generation Z shows 35 percent valuing in-store atmosphere and brand experience. Online purchases account for only 30 percent of the market.
Manufacturers favor mono-brand boutiques because they control the customer experience, employ their own staff and collect purchase data for targeted marketing. The strategy creates friction as independent multi-brand retailers lose access to key brand portfolios. Rolex’s acquisition of Bucherer, one of the world’s largest multi-brand chains, signals the shift. Les Ambassadeurs, a leading Swiss multi-brand retailer since 1964, closed its Geneva flagship and announced closure of its Zurich location. The company will likely cease operations by year’s end.
Generation Z drives the pre-owned segment. Forty percent intend to buy a used watch within twelve months, double the 20 percent rate among baby boomers. Buyers cite affordability at 53 percent and access to discontinued models at 36 percent as primary motivations. Retailers now integrate pre-owned inventory into physical stores and online platforms, treating the secondary market as customer acquisition rather than cannibalizing new sales.
Growth has shifted geographically. India posted 7 percent export growth in the first eight months of 2025 after rising over 30 percent since 2023. Mexico received CHF 337 million in Swiss watch exports during 2024, nearly half of all volume to Central and South America combined.
