The Enduring Allure of the Traditional Jeweler in the Digital Age
In an era dominated by e-commerce and digital storefronts, a surprising trend persists in the world of high-end horology. A significant majority of consumers, precisely 60%, still prefer the tangible experience of purchasing luxury watches from brick-and-mortar stores. This finding, a key highlight from Deloitte’s comprehensive “Swiss Watch Industry Study 2025,” underscores the deeply personal and sensory nature of acquiring a luxury timepiece. The study, which surveyed 6,500 potential watch buyers across key global markets including the United States, China, and several European and Asian hubs, reveals a fascinating insight into the modern luxury consumer’s mindset. While the digital world offers convenience, it appears it cannot yet replicate the unique allure of Traditional Jewelers.
The In-Store Experience: A Sensory Journey
The reasons behind this preference for physical retail are multifaceted and deeply rooted in the psychology of luxury purchasing. A remarkable 51% of respondents emphasized the importance of the ability to “try, test, and feel” the product. A luxury watch is not merely a time-telling device; it is a piece of intricate machinery, a work of art, and a personal statement. The weight of the case, the feel of the bracelet on the wrist, the glint of light on the polished surfaces, and the satisfying click of the clasp are all integral parts of the ownership experience that can only be appreciated in person.
Beyond the sensory engagement, 44% of consumers highlighted the value of “human contact” and the “personal relationship” they share with their retailer. Knowledgeable sales associates who can articulate the nuances of a complex movement, share the history of a brand, and offer personalized recommendations play a crucial role in the purchasing journey. This human element fosters a sense of trust and connection that is difficult to replicate through a screen. For many, the local jeweler is a trusted advisor, a guide into the intricate world of horology.
Convenience and proximity were also cited as significant factors by 39% of those who favor in-store shopping, while 32% were drawn to the overall “store experience.” The ambiance of a well-appointed boutique, with its elegant displays and luxurious atmosphere, contributes to the sense of occasion that should accompany such a significant purchase. Finally, for 31% of in-person shoppers, the instant gratification of leaving the store with their new watch is a key advantage over the waiting period associated with online orders.
The Digital Frontier: A Slow but Steady Advance
Despite the strong preference for in-person shopping, the online channel is not to be dismissed. The Deloitte study found that 30% of respondents do prefer to buy their watches online. However, the industry itself has been cautious in its adoption of e-commerce. On average, industry executives reported that a mere 10% of their sales originate from online channels, and a notable 16% of brands have no direct-to-consumer online sales presence at all. This cautious approach reflects the industry’s commitment to maintaining an exclusive and personal customer experience.
While the majority of executives (74%) believe that brick-and-mortar retail will maintain its dominance over the next five years, they are also increasingly integrating digital tools to complement the physical experience. Services like “click-and-collect,” personalized online appointments, and AI-powered product finders are becoming more common, bridging the gap between the online and offline worlds.
Interestingly, when consumers do opt for online purchases, their preferences differ from the in-store experience. The survey revealed that 38% of all consumers prefer to buy from a multi-brand store, compared to 23% who favor a mono-brand boutique. This suggests that when shopping in person, consumers value the curated selection and brand immersion of a mono-brand store, while online, the wider variety and price comparison opportunities of a multi-brand retailer are more appealing.
The Burgeoning Pre-Owned Market: A New Era of Watch Collecting
One of the most dynamic and rapidly growing segments of the luxury watch industry is the pre-owned market. This once informal and often unregulated space has transformed into a formalized and strategically important channel that complements, rather than competes with, the sale of new watches.
The Youthful Vanguard of Secondhand Luxury
The popularity of pre-owned timepieces is particularly pronounced among younger consumers. An impressive 40% of millennials and Gen Zers expressed their intention to purchase a secondhand watch in the coming year, a significantly higher proportion than the 30% of Gen X and baby boomers who said the same. For these digitally native generations, the stigma once associated with “secondhand” has all but vanished, replaced by an appreciation for value, sustainability, and the thrill of finding a unique or discontinued model.
The motivations for buying pre-owned are diverse. For many, it offers a more accessible entry point into the world of luxury watches. It also provides access to a wider range of models, including rare and vintage pieces that are no longer in production. Furthermore, the growing emphasis on sustainability and the circular economy makes pre-owned a more environmentally conscious choice for many younger buyers.
Despite the clear consumer demand, the industry’s embrace of the pre-owned market has been somewhat hesitant. A quarter of the executives surveyed by Deloitte stated that their brands are not currently involved in the certified pre-owned (CPO) market, and 24% do not actively manage the resale of their brand’s timepieces. Even among those who do participate, the investment in this sector remains minimal, with a majority of executives dedicating less than 15% of their marketing budgets to pre-owned, and a staggering 62% spending less than 1%.
However, the tide is turning. An increasing number of prestigious brands are recognizing the importance of the CPO market and are launching their own programs. These programs offer consumers a crucial layer of trust and security, with watches that have been authenticated, serviced, and are sold with a warranty. This not only builds consumer confidence but also allows brands to maintain a degree of control over their image and the resale value of their products.
The Watch as an Investment: More Than Just a Timepiece
The allure of luxury watches extends far beyond their aesthetic and functional qualities. For a growing number of consumers, a high-end timepiece is also a tangible and potentially lucrative investment.
Value Retention and the Savvy Collector
The Deloitte study found that 16% of consumers consider the “resale value” of a watch when making a new purchase. This indicates a sophisticated understanding of the market and a desire to own an asset that will hold its value over time. Among those who purchase pre-owned watches, 17% view their acquisitions as “investments,” even though only 5% plan to resell them soon after purchase. This suggests that for many, the investment potential is a reassuring factor, even if they have no immediate intention of parting with their timepiece.
The performance of certain luxury watch brands on the secondary market has been nothing short of remarkable. Over the past five years, luxury timepieces have seen an average value appreciation of 22.85%. Some brands have performed even better, with Audemars Piguet leading the pack with an average price surge of 64.85% between October 2019 and October 2024. Vacheron Constantin, Cartier, and Patek Philippe have also seen significant value appreciation in recent years.
This strong performance has positioned luxury watches as a viable alternative asset class, particularly in times of economic uncertainty. Unlike many other luxury goods, watches are relatively liquid and can be sold with relative ease. Their value is not directly tied to the fluctuations of the stock market, making them an attractive option for portfolio diversification.
Headwinds and Horizons: The Challenges Facing the Swiss Watch Industry
Despite the enduring appeal of its products, the Swiss watch industry is not without its challenges. A confluence of economic and political factors is creating a complex and uncertain landscape for manufacturers and retailers alike.
The Specter of Tariffs and Economic Pressures
A significant source of this uncertainty is the 39% tariff on Swiss imports that went into effect in the United States in the summer of 2025. The U.S. is the largest export market for Swiss watches, accounting for nearly 17% of global exports with a value of CHF 4.4 billion in 2024. This substantial tariff is expected to lead to significant price increases for consumers, which could, in turn, dampen demand. Major brands like Rolex and Patek Philippe, as well as some Swatch Group brands, have already instituted price hikes in the U.S. market.
Beyond the tariffs, industry executives have also expressed concerns about the ever-increasing price of gold, a key material in watchmaking, and weak demand in other major markets. The current strength of the Swiss franc also poses a challenge for exporters, as it makes their products more expensive for foreign buyers.
Navigating the Future: New Markets and Evolving Strategies
In the face of these challenges, the Swiss watch industry is adapting and evolving. Brands are increasingly looking to new and emerging markets for growth. India and Mexico, for example, are seen as having significant potential. Exports to India have been booming, and Mexico is establishing itself as a key hub in Latin America.
The industry is also grappling with a generational shift in consumer behavior. The rise of smartwatches has undeniably had an impact, with a notable drop in the number of consumers who wear a traditional watch exclusively. However, interest in traditional mechanical and quartz watches remains strong, with 54% of consumers considering such a purchase in the coming year.
Ultimately, the future of the luxury watch industry will depend on its ability to navigate these complex challenges while staying true to its heritage of craftsmanship, quality, and exclusivity. The enduring preference for the traditional jeweler, the dynamic growth of the pre-owned market, and the increasing recognition of watches as a sound investment all point to a bright future for this timeless industry. The key will be to balance tradition with innovation, and to continue to create products that capture the hearts and minds of a new generation of watch enthusiasts.
