Why Swiss watches are clocking up more sales in the US

 

Exports to the US rose by 55 per cent last year, nudging America past China for the top spot

After more than a decade, Americans are once again spending more on Swiss watches than anyone. One big reason is that they are thinking differently about them.

Call it less bling, more investing.

During the pandemic in the US, there has been a boom in the value of collectibles of all sorts — from baseball cards to vintage video games. The reasons are many, but one central catalyst is that people had more time and fewer ways to spend their money. That led to almost anything with scarcity being seen as an investment and finding a robust secondary market. The rising tide lifted Switzerland’s high-end watch industry, with prices surging.

“It has become an investment piece,” said 68-year-old Albert Ganjei, who, as founder of Boston-based European Watch Company, has been selling timepieces for nearly three decades. “It has totally changed.”

While some watches are so coveted that they sell for millions at auction — a Patek Philippe recently sold for $6.5 million — and others are appreciating at a faster rate, many still tend to lose value over the years, especially when accounting for maintenance costs.

Exports of Swiss watches to the US increased 55 per cent last year to more than $3 billion, nudging America past China for the top spot. This growth comes amid uncertainty in the industry’s other major markets. Russia’s invasion of Ukraine may hurt consumer confidence in Europe. And China is grappling with its worst coronavirus outbreak since the start of the pandemic.

For years, the US presented a tricky market for a lot of marquee Swiss brands. They faced behemoth Rolex, which still controls about a third of the market. A belief that America’s well-heeled consumers would rather splurge on mansions, yachts and cars didn’t help matters. Prevailing wisdom also said that they didn’t have the same appreciation for intricate timepieces as shoppers in Europe and Asia.

Readmore:https://www.thenationalnews.com/business/2022/03/26/why-swiss-watches-are-clocking-up-more-sales-in-the-us/