The Swiss watch industry is facing a challenging landscape, with a post-pandemic boom followed by a downturn, and now a potential recovery on the horizon. Amidst this volatile environment, the CEOs of Audemars Piguet, Breitling, Chopard, and Hublot gathered at the Dubai Watch Week CEO Roundtable to discuss leadership and strategy. The event, hosted by Ahmed Seddiqi, marked the retailer's 75th anniversary and showcased the industry's resilience and innovation.
The roundtable featured an intimate discussion with the leaders of these renowned brands, shedding light on the critical issues facing the Swiss watch industry. One of the key concerns raised by Ilaria Resta, CEO of Audemars Piguet, was the impact of the 'perfect storm' of challenges on suppliers and component makers. The strong Swiss franc, soaring gold prices, a dip in consumer demand, and U.S. tariffs have created a difficult environment for the industry.
Resta emphasized the importance of aligning production needs, orders, and interactions with suppliers to avoid the 'boom and bust' cycle. She highlighted the vulnerability of suppliers who have been significantly affected by the fluctuations in orders, and the potential consequences for the entire industry if manufacturers don't cater to their needs. To address this, Audemars Piguet took a proactive step by acquiring a majority stake in Inhotec SA, a key Swiss supplier, to provide financial and strategic support.
Karl-Friedrich Scheufele, co-president of Chopard, shared insights from his company's dial maker, Metalem SA, in Le Locle, Switzerland. He underscored the interdependence of the industry on suppliers and the potential risks if the supply chain is disrupted. The launch of the L.U.C Grand Strike, a highly complex timepiece, during the Dubai Watch Week further showcased the industry's innovation and craftsmanship.
The CEOs also discussed the impact of the recent tariff agreement between the Swiss government and the U.S. on reducing tariffs from 39% to 15%. While this provides relief to Swiss watchmakers, the industry still faces uncertainty. Georges Kern, CEO of Breitling, expressed optimism about the future, citing the growth of global markets and the increasing demand for premium mechanical timepieces.
Julien Tornare, head of Hublot, agreed that the industry is under immense pressure, but emphasized the importance of focusing on the fundamentals to develop desirability. Despite the challenges, the CEOs expressed confidence in the industry's ability to navigate through the crisis and emerge stronger. They believe that 2026 may bring more success, with a potential return to growth and a renewed emphasis on the emotional connection between the brand and the wearer.
The Dubai Watch Week CEO Roundtable provided a unique platform for industry leaders to share insights and strategies, offering a glimpse into the future of the Swiss watch industry and its ability to adapt and thrive in a rapidly changing market.
