The annual Watch and Wonders trade show concluded on Monday, April 15 in Geneva, Switzerland, after a week-long gathering of industry members, journalists, and horological enthusiasts. This year, 54 brands unveiled their latest products at this prestigious event, including renowned names like Patek Philippe, Piaget, Cartier, TAG Heuer, Chopard, Grand Seiko, and Rolex.
A week before this international gathering, Rolex's CEO Jean-Frédéric Dufour sat down with Swiss newspaper NZZ to discuss the current climate of the watch industry. Read on to see what he has to say.
LOOK: Rolex’s CEO Jean-Frédéric Dufour on the Watch Industry’s Current Climate
In the interview, Jean-Frédéric, who also serves as the president of the Watches and Wonders Foundation, openly acknowledged that he anticipates 2024 to be a "challenging" year for watch manufacturers. He pointed to rising gold costs, geopolitical tensions, and economic impacts on the Swiss franc as key contributors to the market’s apparent volatility. “When markets weaken, as is the case now, retailers come under pressure to cut prices. This is extremely problematic because discounts damage emotional products like ours," he explained.
During the peak of the COVID-19 pandemic, luxury watch sales saw an increase. Now, two to three years later, luxury watch prices, including Rolexes, in the secondhand market are declining—indicating a devaluation of these luxury timepieces. When asked about this trend, Rolex's CEO remarked, “I don’t like it when people compare watches to stocks. It sends the wrong message and is dangerous. We make products, not investments.”
As the Federal Reserve—the United States central bank—raised interest rates between May 2022 and July 2023, watch prices began to decline. The central bank increased borrowing costs from almost zero to around 5%. When interest rates go up, people are more likely to save rather than spend, which can lower demand for expensive items, such as luxury watches.
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