Luxury Watch Market Crisis in Zurich

KMII · 2017-07-21T09:30:17Z

Is the luxury watch market in crisis? Explore observations of deep discounts and enhanced service in Zurich's watch retail. Collector insights on market trends.

KMII

WPS member · Horological Meandering forum

40 replies6635 views1 photos

KMII's observations from Zürich about significant discounts and heightened customer service in luxury watch retail raise a crucial question: is the watch industry facing a genuine crisis? His detailed account of seeing current models and high complications heavily discounted, even in brand boutiques, provides a compelling snapshot of market conditions that warrant deeper discussion among collectors and industry observers.

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Been to Zürich the other day and while it was a family trip, I could not stop making it watch related, too (which one of us can?

).

And there have been some quite interesting observations I made.

Let's start with the outright shocking. One of the truly storied Zürich watch retailers (of many a double signage model) looked shockingly like a discount / outlet store - all across the shop windows you had massive sale and % signage. And the watches - mostly from reputed manufactures we all discuss here frequently - were arranged into clusters of -20 - -40% then -30 - -60%... Current models, too. And many high complications.

A bit taken aback the other observations were not pointing in a different direction, either. Without mentioning any brands, I got offered double digit discounts in brand boutiques on selected pieces, and was pretty much without exception handled by the boutique director - in spite of entering in a decidedly low key attire (polo, slacks & backpack).

And I have been to all boutiques for the first time - so no 'good customer bonus'.

While the really great customer treatment is highly welcome (not sure this has gotten better - got no comparison values), I am wondering if these are some harbingers of a real crisis in the industry.

Have any of you made similar observations lately?

Key Points from the Discussion

The presence of significant discounts (20-60%) on current models and high complications in Zurich's storied retailers and brand boutiques suggests a softening market.
Some retailers offer 0% finance deals over several years with a low deposit, making expensive watches more accessible without directly discounting the price, which can be a strategy to move inventory.
While some shops might have a small discount window, the widespread and prominent display of sales signage observed by KMII was unusual for high-end luxury retailers.
Observations from other major cities like Dubai, Geneva, London, and New York indicate a modest softening of prices, with rare pieces taking longer to sell rather than being substantially discounted.
The willingness of dealers to offer discounts can be highly specific to the individual dealer and model, with some being more flexible than others, especially on grand complications.
The weakening dollar could also contribute to the perceived need for discounts to offset purchasing power differences for international buyers.

The Discussion

Tick Talk

Jul 21, 2017

so I'm going to check out the bargains!!

KMII

Jul 21, 2017

You will hardly be able to miss what I described...

Bruno.M1

Jul 21, 2017

Was in Düsseldorf today, seen quite a few Panerai LE. Years ago these references like the 685, 687 and 662 would have been hard to get watches that sold out the first day of SIHH Today they are all in the window, UNSOLD

KMII

Jul 21, 2017

Thanks for sharing, Bruno!

KMII

Jul 21, 2017

Thanks for chiming in!

Clueless_Collector

Jul 21, 2017

However, I do get some offer for discounts during my trip in Feb, and looking back, the deal was better than in Germany for that watch. On the flip side, dollar is so weak now so maybe that's why discounts can help to offset some foreseeable weakness ahead. Rgds Raymond

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