Eurotec: Mr Bugmann, how is the Swiss watch industry faring?
Yves Bugmann: The US market, the main export market for Swiss watchmaking, remained stable in 2025 (-0.5%) despite the introduction of tariffs. It can therefore be seen as a resilient market. The Chinese market has also stabilised after several years of decline, and the outlook for the rest of this year is more positive. Overall, the decline in exports, which stood at -2.8% in 2024 and -1.7% in 2025, appeared to be coming to an end. The first quarter of this year even returned to positive territory with a 1.4% increase. All of this is now being called into question by the conflict in the Middle East. This is all the more regrettable given that this region had been experiencing strong growth, driven by tourism, and had recently accounted for 10% of watch exports. Today, there is once again a lack of clarity. Insecurity is a poison for the economy, and the current situation demands great resilience from businesses, particularly subcontractors.
Are there any other threats facing the watchmaking industry?
The watch industry is currently facing a number of challenges, the main ones being the price of precious metals, the strength of the Swiss franc and over-regulation. On this last point, Switzerland sometimes goes too far. It is, of course, a good thing to be concerned about the environment and sustainability, and the watch industry, with its premium products, has every interest in doing so. But when new legislation is constantly being introduced that requires brands to submit regular reports, the resulting burden grows heavier and risks becoming a hindrance. Even the European Union, known and often criticised for its restrictive legislation, is beginning to deregulate to enable its businesses to regain their competitiveness.
The debt brake introduced in Switzerland in the 1990s has proved successful. Why shouldn’t we introduce a regulatory brake, as the Young Radicals have recently called for? We really do need to ask ourselves the right questions: for example, where does Switzerland’s prosperity come from? The answer is clear: it comes from businesses. We must therefore protect them, in particular by ensuring they have the right framework conditions. In collaboration with economiesuisse, the FH is campaigning to uphold favourable conditions. Still on the political front, the recently published poll on the ‘No to a Switzerland of 10 million’ initiative paints a worrying picture regarding the outcome of the vote. On the one hand, the economy needs a workforce; on the other hand, the importance of the bilateral agreements – which would be called into question – is now well established, whether in terms of access to various European scientific programmes or the security of our electricity supply.
The issue of US tariffs has not yet been resolved. The current tariffs are temporary and will expire in July 2025. The US administration is currently laying the groundwork for the introduction of new country-specific tariffs. It is therefore important for Switzerland to take a proactive approach to this issue, which is why the FH supports the Federal Council’s efforts in the negotiations.
Other agreements, with Mercosur and Vietnam, have been signed or are at an advanced stage of negotiation and will provide Swiss companies with improved access to these markets. Work is also progressing on the modernisation of the agreement with China. This is certainly welcome news when analysing the Indian market’s performance. Having already been strong in recent years, the growth in Swiss watch exports to India has accelerated further since the free trade agreement came into force. In the first quarter, India recorded a 36% increase, rising from 20th to 14th place.
What are the reasons behind the decline in export volumes, and what might be the solutions?
This decline in sales volumes is nothing new. A market survey conducted in 2025 highlights consumers’ interest in buying a watch. One positive aspect of this survey is that the results show that Swiss watches remain as fascinating as ever. The entry-level segment is, however, extremely competitive, and consumers now have a wide range of alternatives to choose from.
It is important for the Swiss watch industry to maintain a strong presence, with appealing products, across all price segments. By living up to its reputation for precision and durability, the industry can thus meet the diverse expectations of consumers.
Yves Bugmann
One final word on a phenomenon that is constantly gaining momentum: AI. To your knowledge, does the watchmaking industry make regular use of it?
In the watchmaking industry, there is no doubt that there is significant interest in AI. According to Deloitte, few companies say that it is not a priority. Most are currently in the evaluation phase or are implementing it in a targeted manner. In addition to its now well-established applications in hyper-personalisation of offerings, content creation and customer relationship management, generative artificial intelligence is increasingly becoming an integral part of the entire value chain for luxury brands. As well as enhancing the shopping experience, it is used in a wide range of areas, from product development to operations management.
