The five other top markets (Japan, China, Hong Kong, the United Kingdom, and Singapore) undoubtedly have strong collector bases and cannot be overlooked; however, the US market eclipses them all.

The United States is not simply “a key market” as some analysts have written recently — it’s absolutely “the key market” for any watch brand wanting to succeed.

The US has Hollywood, which influences Swiss watch popularity probably more than any other single factor, but even without that marketing engine, it’s a market that cannot be ignored.

Despite the US being the largest market, many Swiss watch companies prefer to communicate through European watch publications, presumably due to their proximity, lack of language barriers, and doting coverage. However, the lowest hanging fruit is not always the best option.

Of course, cutting costs is essential, but to what extent? To the point that no real editorial voice on the watch industry exists in the US. To the extent that every US point of sale has to be managed by someone from Europe?

The general lack of Swiss support of both US watch retailers and media is concerning, and is not a good way to grow total market share, simply because too much of the limited resources are being wasted on smaller markets.

Rolex seemingly understands this better than anyone else — they’re in the process of completing their massive headquarters at 665 Fifth Avenue, which will be one of the most prominent watch facilities in existence outside of Switzerland. Not to mention the extensive network of modernized flagship Rolex boutiques, service centers, and the rollout of an industry-leading certified pre-owned program nationwide.

In my experience, Rolex treats both media and retailers diplomatically, and that’s a major factor in their disproportionate success. I’d argue Rolex’s success is not a function of absolute control (even though it may appear that way) — instead, it comes from leading, delegating, and taking action. And if Swiss watch brands need a blueprint for how to operate in the world’s largest Swiss watch market, look no further than Rolex.

 

Charts by the Federation of the Swiss Watch Industry FH.