Gen Z has emerged as a significant consumer group for luxury Swiss watches, viewing them as status symbols. A 39% tariff on Swiss imports may increase prices, affecting young buyers. A BCG survey noted that 54% of Gen Z has escalated luxury watch spending, with Sotheby’s reporting that a third of watch sales in 2023 were to buyers aged 30 and younger. Despite potential price hikes, analysts suggest demand may remain stable, as prominent brands like Rolex and Patek Philippe retain their allure for social status among younger consumers.
"Companies cannot realistically absorb the tariff, which means retail prices in the U.S. will rise sharply," Marcus Altenburg, managing partner at Swiss law firm Goldblum & Partners, told Fortune.
From January to June, the U.S. overtook Japan and China as the top destination, with $3.17 billion worth shipped, according to the Federation of the Swiss Watch Industry.
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