INTERVIEW - "If Switzerland only makes luxury watches, that's probably not enough"

The Swiss watch industry is exporting fewer and fewer watches. Karine Szegedi, a Deloitte partner specializing in luxury goods, explains why this is becoming a problem for suppliers – and why "Swiss made" alone is no longer enough.

INTERVIEW - "If Switzerland only makes luxury watches, that probably won't be enough"

Zurich, September 30, 2026 – The Swiss watch industry, a historically significant economic sector, is facing new challenges. Export figures for watches are falling, which could have far-reaching consequences for the entire value chain and Switzerland as a business location. Karine Szegedi, partner at Deloitte and expert in luxury goods, sheds light on the reasons and possible effects of this development in a recent interview. Supplier companies in particular are coming under pressure as demand for higher-volume segments decreases and the focus shifts exclusively to the high-price segment. Against this backdrop, the "Swiss made" label, long a guarantee of quality and exclusivity, must be reinterpreted in order to maintain its relevance in a changing global market.

The decline in export figures reflects a structural shift within the watch industry. While the luxury segment, particularly for high-priced mechanical watches, continues to hold a strong position, the middle and lower price segments are increasingly losing ground. This is due not least to competition from smartwatches and a change in consumer demand, which is increasingly seeking digital functionality or an extremely low-cost alternative. For traditional suppliers, who often manufacture components for a wide range of watches, this concentration on a few high-priced niche products means significant uncertainty. Their business models are designed for economies of scale and stable demand across various price categories.

Challenges for "Swissness"

In this context, the discussion about the "Swissness" of the product is gaining importance. Szegedi points out that simply adhering to the principle of origin is not enough to ensure the future viability of the industry. A strategic realignment is required, encompassing innovation, sustainability, and a deeper engagement with the needs of modern consumers. The Swiss watch industry must ask itself how it can utilize its unique craftsmanship and technological expertise in a broader context, rather than relying exclusively on a shrinking niche. Diversification and the opening up of new fields of application for precision mechanics could play a role here.

For prospective MBA students and corporate decision-makers, these developments offer a lesson in strategic management and industry change. The watch industry serves as an example of how established companies and entire sectors are forced to rethink their business models when market conditions change radically. It is not just about developing products, but also about redefining value propositions and making supply chains more resilient. An MBA program can provide the necessary analytical and strategic tools to manage such complex transformation processes – from market analysis and innovation promotion to risk management and the repositioning of brands in global competition. The Swiss example shows that even historically successful industries must continuously act and adapt to remain relevant in the long term.