Sales of Swiss watches reached a new high in 2021, with their export value topping $21 billion, due in part to an interest in luxury watches during the Pandemic Era.
Industry figures show that last year's record value came from the sale of less units than a decade ago.
Smaller brands are getting more expensive due to the fact that they don't get as much attention as larger brands.
Rolf Studer, CEO of Oris, told The Wall Street Journal that the average retail price of a Swiss watch has increased by 50%.
Oliver Mller told the Journal that chasing the wealthiest customers could be a bad idea.
He said that they have to be careful not to make it too small and exclusive.
Mller said that further reductions in volume could lead to parts shortages and a loss of craftsmanship.
Consumer and collector interest tends to congregate around specific models, even among the upper tier of brands.
The secondary market has been concentrated in a few specific brands and families.
The Daytona or Yacht Master models appreciate at a faster rate than the Datejust or Day-Date models, signaling stronger demand for top-line pieces.
The Nautilus Ref 5711 was originally priced at $30,000 but is now worth six figures. The steel sport watch became so popular that it detracted from the other models.
"I don't know why the success of this watch came so quickly and went so high," he said. I don't want to be a mono- product company. This is the reason for stopping the 5711. Enough was enough.
For all of the beauty and artisanship that goes into a $500 Swiss watch, those are competing with something that's both more practical and versatile: an Apple Watch.
If you break into the $3,000 range, you're not buying this item to tell time, and you're in a much more rare place.
It's not clear whether that's a positive thing for the industry.
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