A few months ago 2021, a year considered by the major watchmaking companies as a recovery period after the difficult 2020 vintage, has come to an end. Let's take stock of the situation of the watch market and the prospects for 2022, with an eye in particular to luxury, which continue to drive significant turnover.
2021: How did it go?
The top three watch manufacturers in the world, by turnover, are confirmed as the group in 2021 as well Swatch, Seiko e Rolex. The first two positions seem rather obvious: in the first case it is a multi-brand giant, in the second of a Japanese integrated manufacturer which, even with only three brands - Seiko, Orient e Grand Seiko -, covers the entire range of watches, from economic to luxury. It affects that one House that deals only with luxury like Rolex-Tudor, with a fraction of the employees of the top two in the world, manage to stay on the podium.
As for profits, the clearest is the Swatch Group, which includes historical names in luxury such as Omega, Breguet e blancpain, as well as competitively priced brands such as Hamilton, Longines, Tissot and, of course, the same Swatch. The Group's control over ETA, a manufacturer of movements of great importance in the Swiss panorama, is also of considerable importance. Being listed on the stock exchange, the Swatch Group regularly publishes its balance sheet data: we can therefore learn how, in the face of a sharp decline in turnover, the world's leading watchmaker managed to avoid losing money and to keep the employment of its thirty-six thousand employees.
Profits of Seiko e Rolex it is not known: however, both companies, which respectively count twelve thousand and four thousand workers in their ranks, have not announced downsizing in their workforce, a sign of a solidity that has made it possible to cope well with the contraction of the market that occurred in correspondence with the crisis economic situation of the Covid period.
2022: How will it go?
2021 was a year of recovery from the difficulties of 2020, while 2022 promises to be a year of real growth for many watch brands. In the luxury sector, in particular, the demand is always lively and driving, especially for the more consolidated houses such as Rolex, Omega, Cartier, Patek Philippe e Audemars Piguet. The Asian and US markets amply compensate for the difficulties of the European market, which is still subject to restrictions that somewhat allay the desire for luxury. Just a little, though: there are not a few who, in a period of economic uncertainty, choose to turn their savings into luxury watches for investment purposes. Phenomenon that mainly concerns the Rolex sportsmen.
Luxury Watches: An Investment or a Bubble?
If many see the market prices widely above the price list of certain luxury watches as unjustified, it is true, however, that for years now the trend is on the upside and no one knows if or when this will change. If you are also interested in staying up to date on the trends in the watchmaking market, read our Magazine and subscribe to the Newsletter with the button at the bottom of the page.
