Noticeable price increases for Swiss watches

Price increases are the most important factor for consumers. With the trend of rising interest rates, Basic living costs and transportation expenses have all increased this year. How did the luxury watch industry set their price increases and how often did they implement them? Among watch enthusiasts, The perception that "today is the cheapest day" has become common as price increase strategies have accelerated throughout the year.

Across the luxury watch industry, Consecutive price hikes have been implemented. Cartier, Omega, And Jaeger-LeCoultre all saw price increases exceeding 20% this year. As the clear industry leader, Rolex raised prices by 7 to 18% in 2022 and adjusted the increase to 2% in 2023. We examine the trend of retail price increases in the luxury watch market, Where even entry-level models have now reached the ten million won range. This survey is based on changes in retail prices as of January 1, 2022.

Price increase rates at a glance

This is a comparison of the price increase rates for major models of popular department store watch brands in Korea.

2022~2023 Major watch brand model prices and increase rates
ⓒ VIVER Index

Rolex price increase once, Rate 2~2.2%

Rolex Boutique, Dubai / ⓒ Rolex

For consumers closely monitoring watch brand prices, Rolex is now considered reasonably priced. Due to the difficulty of purchasing popular products without open runs or reservations, The resale price with a premium is more familiar, Making the retail price almost meaningless. In this environment, The fact that popular products such as Daytona and Submariner, Which have revitalized the domestic watch resale market, Are being sold for less than twenty million won makes Rolex an even more attractive brand. Furthermore, Rolex's strategy of lowering the price increase rate to around 2% for its main professional line this year stands in contrast to competitors who have continued to raise prices.

Daytona 126500LN

40mm, Black, Oyster

Daytona 126500LN

40mm, White, Oyster

Submariner 124060

41mm, Black, Oyster

Cartier price increase three times, Rate 17~28%

Cartier Maison, New York / ⓒ Cartier

Even for Cartier, The most popular brand under the Richemont Group, Price increases have been bold. As the number one choice for women's wedding watches, Cartier raised prices by 6 to 13% in May 2022, 8 to 10% in December, And up to 15% for popular products by April 2023. The increase rate varies by product, But the minimum increase is over 4%. While there are still many products under ten million won in the most popular 'Tank' collection, Retail prices have accelerated upward. Thanks to the popularity of sports watches, The Santos de Cartier, Which is popular among male customers, Has now entered the ten million won era.

Santos LM WSSA0062

47.5mm x 39.8mm, Green

Tank Must LM WSTA0052

33.7mm x 25.5mm, Silver

Tank Solo LM W1018355

34mm x 27mm, Silver/Roman

Ballon Bleu WSBB0048

36mm, Silver

Omega price increase three times, Rate 21~24%

Omega ‘The Circle’, Zurich / ⓒ Swatch Group

Omega, The flagship brand of the Swatch Group, Is increasingly seen as implementing a strategy to shed its image as a "Rolex alternative." In 2023, Prices were raised twice, And the increase rate for major steel models over 18 months exceeded 20%. The flagship Moonwatch, representing the brand, Entered the ten million won range as of June 2023, And it is expected that all models will be sold for over ten million won in 2024. The rapid price adjustments are seen as a strategy to narrow the price gap with Rolex by leveraging brand awareness.

Moonwatch 310.30.42.50.01.001

42mm, Black

Jaeger-LeCoultre price increase five times, Rate 24~49%

Jaeger-LeCoultre, Singapore /
ⓒ JAEGER-LECOULTRE

The most notable brand in the wave of price increases is Jaeger-LeCoultre of the Richemont Group. Known as the "watchmaker's watchmaker, " Jaeger-LeCoultre has raised prices five times in just 18 months since 2022.
Until last year, The lowest price for the Reverso collection, Considered the face of the brand, Was 5.9 million won, But now the lowest price is 10 million won, Nearly double. The popular dress watch "Master Ultra Thin" and the reasonably priced complication "Master Control Calendar" have also seen sharp price increases, And the brand's sports collection "Polaris" now has a minimum price higher than the Rolex Submariner.

Although the sudden price surge is daunting, There is also a perception that the retail price for the Reverso was rather low at under seven million won just two years ago.

Last June, Vacheron Constantin also raised prices by an average of 11 to 15%, With the steel Overseas model now in the high thirty million won range.

Luxury image starts with price

Premium pricing is the act of creating a positive psychological effect on consumers and the brand's image through price alone, Without external factors. In the luxury market, Where high prices are directly linked to brand image and sales, Can watches, As a special item, Also benefit from frequent price increases? Both industry insiders and consumers are watching closely.

How to be a wise consumer?

For consumers new to the luxury watch market, These industry trends may be unfamiliar. Price increases for luxury watch brands are now expected and inevitable, So preparation is necessary. Therefore, It is important to recognize the likely periods for price increases (January and the wedding season from March to July) and manage your budget thoroughly.

If you do not have the time to read the market flow or optimal purchase timing, Or if you have been involved in the watch lifestyle for a long time, You may naturally turn to the resale market. Although there are different types of premiums in the luxury watch resale market, Brands with similar price ranges to Rolex have little or no premium. In fact, You may be able to purchase unworn watches at a lower price. The growth of the luxury resale market is fundamentally driven by high demand for luxury, But another reason is the rapidly rising prices that are difficult for consumers to keep up with. Responding to relentless price increases at your own pace can be the wisest way to shop.