Rolex sales $17 billion but MoonSwatch is the winner in 2023
In 2023, replica Rolex remained a dominant force in the Swiss watch industry, with its sales surpassing $17 billion, marking a 9% increase in turnover to CHF 10.1 billion. This surge indicates Rolex’s formidable presence, claiming a significant 30% market share at retail, as reported by Morgan Stanley’s annual industry analysis, in collaboration with LuxeConsult, a Swiss consultancy firm. Notably, Rolex’s market share surpasses the combined share of the next five leading brands: Cartier, Omega, Patek Philippe, Audemars Piguet, and Richard Mille.
However, the standout performer of the year was Swatch, with its revolutionary MoonSwatch, propelling its turnover to CHF 660 million, a remarkable 63% increase from the previous year. Launched in 2022, the MoonSwatch not only bolstered Swatch’s sales but also attracted more customers to its retail stores, leveraging an offline-exclusive strategy. Moreover, it aimed to introduce a new generation to Omega’s iconic Speedmaster, resulting in a 5% sales growth for Omega in 2023.
The significance of Omega to the Swatch Group’s overall sales and profits cannot be overstated, contributing an estimated 39% of group sales and approximately 60% of profits. Despite challenges in the Chinese market, Omega demonstrated resilience by focusing on the more stable American market, as highlighted in the report.
In terms of turnover, the top five replica watch brands remained consistent in 2023, with Vacheron Constantin joining the elite club of billion-dollar players. Interestingly, privately-owned brands outpaced those under major luxury conglomerates like LVMH, Richemont, and Swatch Group, collectively nearing the sales scale of Rolex/Tudor.
Notably, LVMH-owned Hublot and TAG Heuer experienced sales declines of 10% and 16%, respectively, indicating challenges within the conglomerate. Conversely, brands under the Hermès, Louis Vuitton, and Chanel umbrellas showcased robust growth, exemplifying the synergy between high fashion and haute horlogerie.
Kering’s watchmaking division faced scrutiny, with Girard-Perregaux and Ulysse Nardin flourishing post-management buyouts, while Gucci witnessed a significant 54% decline in turnover.
Additionally, low-volume independents demonstrated remarkable growth, with F.P. Journe’s sales tripling since 2021 and H. Moser & Cie. entering the top 50 Swiss watchmakers for the first time.
While Rolex retained its market dominance, Swatch emerged as a disruptive force with its Moon Swatch innovation, reshaping the landscape of the Swiss fake watch industry. The report underscores the evolving dynamics and challenges faced by both established brands and emerging players in this competitive market.