When discussing the topic of whether smart watches can replace mechanical watches, we must deeply understand the essential differences between the two and the unique position of mechanical watches, especially Swiss watches, in today's society.
A strong performance in the Swiss watch industry
In 2023, the overall sales of the Swiss watch industry increased by 7.7% year-on-year, which is not only a resistance to global economic fluctuations, but also an affirmation of the enduring value of mechanical watches. Switzerland dominates the world's high-end watch exports, with 7 out of every 10 high-end watches being made in Switzerland, which is not just a number, but a reflection of the savoir-faire, innovative design and brand reputation that Swiss watchmaking has accumulated over the centuries.
Although smart watches offer unprecedented convenience in terms of functionality, such as health monitoring, information reminders, mobile payments, etc., they are more regarded as technology consumer goods, with a shorter life cycle and frequent updates. In contrast, mechanical watches, especially high-end brands like Rolex, have value in heritage, craftsmanship, aesthetics, and emotional sustenance. They are the embodiment of the spirit of craftsmanship, and each watch contains the art of complex mechanical structures, representing respect for time and the pursuit of perfection. This value beyond practicality is a spiritual level that is difficult to reach with smart watches.
The world's No. 1 watch brand
This leader in the global watch industry has created unprecedented brilliance in 2023, with annual sales exceeding 10 billion Swiss francs (equivalent to about 79.3 billion yuan), ranking first among global watch brands, and sales far exceeding high-end watch brands such as Omega, Patek Philippe, and Richardmill. This achievement at Rolex is not only a commercial victory for a brand, but also a global recognition of its exceptional quality, precise timing and unique brand culture. The Rolex brand accounts for 30% of the Swiss watch market and 40% of the US market, with an average price increase of about 4% in the UK in 2024. This performance demonstrates the high level of trust and demand that consumers around the world place in the Rolex brand.
Antiques + Gold: Rolex's Value Code
Rolex's success is not accidental, and behind it lies a key element of the brand's success. First of all, "antiques in prosperous times, gold in troubled times", Rolex perfectly combines the characteristics of the two. As a representative of precision mechanics, every Rolex watch is a work of art, and over time, classic models tend to become the object of collectors' pursuit, and their value increases over time, taking on the collectible value of antiques. At the same time, some of Rolex's high-end collections are made of precious metals, such as yellow gold and white gold, which are inherently monetary, especially in times of increasing economic uncertainty, making Rolex watches to some extent have the characteristics of "gold in troubled times".
A key ingredient to the brand's success: Rolex has taken every detail of its watchmaking process to ensure its quality and durability. This relentless pursuit of quality has earned Rolex the trust of consumers around the world, making its products highly recognized and stable in the market, and its timeless yet stylish design style makes Rolex watches a timeless fashion icon that is not easily obsolete due to changing trends. In addition, the brand is highly recognizable. With a long history and a reputation for excellence, it is a model of Swiss watchmaking. The brand's story and long-standing positive image add extra value to the watch and increase consumer purchase intent.