Swiss Excited But Not Other Luxury Brands Over Gen Z Sales
Demand for Swiss watches is soaring and therefore the export numbers can also be seen rising. Numbers have risen exponentially in Covid-19 times and continue to do so even now.
Official date states that sales indeed rose again in July, increasing to near-record levels, to reach their highest value in eight years. This comes amid high demand for pricey brands like Rolex, Omega and Vacheron Constantin timepieces.
While prices for luxury watches on the second-hand market have been dropping, in part because of the cryptocurrency crash and falling equities, the July exports are “rather reassuring statistics from the Federation,” Mr. Bertschy said.
The online purchase frenzy is going to stay. While a lot of people still go to the malls and high-end stores, the scare around airborne diseases continue to haunt the minds of buyers.
Except for Hong Kong, South Korea and Japan, Swiss watch exports in July to most major markets in Asia and Europe increased by double-digit percentages.
Retailers are the biggest litmus test right now of sales figures. On the flipside, there is problem of inflation and other things cutting into discretionary income of young people who are the ones buying the most.
China’s problem is different.
Additionally, some high-end brands are going to limit number of purchases by a single partner, owing to want to maintain exclusivity. Some brands like Louis Vuitton, Chanel, and Dior, are also aiming to increase their margins in leather products as number of sales reduce but preference remains.
One way for luxury players to continue to attract Gen Z consumers may be to offer aspirational options at entry-level price points that can be worn often, or even make use of metaverse or virtual shopping to keep them coming back for more.