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topicnews · October 26, 2024

Why America is the place for luxury watch brands

Why America is the place for luxury watch brands

When it comes to Swiss luxury watches, America is still number 1 in sales.

The latest figures from industry group Swiss Watch Federation showed that while industry sales fell 12.6% in September, US imports actually rose 2.4%, with US market share rising to 17.2%. The association added that the U.S. is “solidifying its position as the leading market for Swiss watchmaking.”

And that popularity was on full display this past weekend at the WatchTime NY event, the largest watch trade show on the East Coast. The three-day event, now in its ninth year, attracted over 2,500 watch collectors and enthusiasts to the cozy Gotham Hall area, which was filled with 36 international watch brands.

Prestige brands such as Blancpain (SWGAY), Chopard, Piaget (CFRUY) and Breguet shared the main floor alongside smaller enthusiast watch houses such as H. Moser, Urwerk, Armin Strom, MB&F, Norqain and others.

Although most of the brands were Swiss or European brands, most, if not all, had one thing to say: the United States was vital to their brands.

The WatchTime NY exhibition space (Source: WatchTime) · WatchTime

Ulysse Nardin, maker of Swiss timepieces like the Freak, Freak from $20,000.

“The American market is super important for us. I think it is our most important market,” US CEO François-Xavier Hotier told Yahoo Finance. “It has to do with the way people look at things. You know, they appreciate what we do, being brave and doing it your own way. That’s what made America what it is.”

Francois-Xavier Hotier, President of Ulysse Nardin Americas at WatchTime NY (Source: Pras Subramanian)
Francois-Xavier Hotier, President of Ulysse Nardin Americas at WatchTime NY (Source: Pras Subramanian) · Pras Subramanian

The Freak is no ordinary watch. Essentially, the movement itself is the actual minute hand and rotates around the dial to tell the time (see image below). It’s a revolutionary-looking mechanism that appeals to executives of America’s largest high-tech companies, Hotier said.

Ulysse Nardin and Hotier also believe their high-end watches are immune to factors such as uncertain economic conditions or higher interest rates because the typical Nardin buyer can afford such discretionary purchases.

“When I look at performance in North America, we are far exceeding the industry trend,” he said. “I believe that some brands that are suffering today are also brands with larger production, larger distribution at a lower price and a strong marketing mind.”

The Ulysse Nardin Freak One Navy Blue (Source: WatchTime)
The Ulysse Nardin Freak One Navy Blue (Source: WatchTime) · WatchTime

Urwerk is another avant-garde watchmaker that sells its watches in even smaller quantities at eye-popping prices. Consider producing less than a few hundred watches per year, with prices ranging from $50,000 to $250,000 and up.

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