Despite tough economic times, the Swiss Watch industry is still healthy

The financial crisis which hit the United States and later Europe in the third quarter of 2008 continuous. At the same time the Swiss Franc has increased in value as against almost all major currencies. The result, higher Swiss watch prices.

Looking at recently released Rolex watches, the effects of the rise in the Swiss Franc and Rolex's own pricing policy can be seen. 

Milgauss 116400 GV (Release Date 2007)

MSRP - US$6,575 in 2007

MSRP - US$7,150 today

Sea Dweller DEEPSEA (Release Date 2008) 

MSRP - US$8,975 in 2008

MSRP - US$10,650 today

Bi-metal 41mm Oyster Perpetual Datejust II  (Ref. 116233)(Release Date 2009) 

MSRP - US$9,525 in 2009

MSRP - US$10,800 today

Stainless Steel Submariner 116610LN (Release Date 2010)

MSRP - US$7,250 in 2010

MSRP - US$8,000 today

From new Rolex watch released the past four years, beginning the year before the financial crisis, you have seen price increases of 9% to 19%. Even the new Rolex Submariner saw a 10% increase in the year that it is been on the market. The figures above are based on the manufacturers suggested retail price and do not take into account discounts. 

The increased prices are across the industry. Patek Philippe's Calatrava Ref. 5196G which carried a retail price of US$25,600 in May 2010, is now priced at US$27,600. IWC's Mark VXI (on a leather strap) which had a suggested retail price of US$3,200 in May 2010, went up to US$3,500 at the start of this year and is now apparently carries as suggested retail price of US$4,100 based on my visit to the local A.D. two days ago (I need to confirm this, being a rather large jump in price).

Instead of seeing watch prices drop because of lack of demand due to the the difficult economic times, you see the reverse. The reason is, there is no lack of demand. Despite the tough economic times, the Wall Street Journal reports that, year on year Swiss Luxury Watch exports increased by 24.1% from August 2009 to August 2010. The figures as of August 2011 shows a slowing but still healthy 14.5% increase in exports. The market is expected to soften next year, mainly because of slowing economic growth in the US, Europe and Asia, to a bit below 10%.