China — Watchmaking
China: the watch downturn calls for rebuilding the market from the local client
· 6 min read
Swiss watch exports to China fell 12.1% in 2025, to 1.804 billion francs. The Federation of the Swiss Watch Industry notes they have lost more than a third over two years. This data covers shipments rather than final sales, but it confirms a deep adjustment after years in which the Chinese market drove much of global growth.
At the same time, China's National Bureau of Statistics recorded a 12.8% rise in 2025 in sales of gold, silver and jewellery among businesses above the statistical threshold, while cosmetics grew 5.1%. Price effects matter and the categories are not directly comparable. The contrast nonetheless shows that high-value spending has not simply switched off: it is being allocated differently.
Start with the truth about inventory
When shipments slow, the temptation is to prop up the network with more novelties or transfers. This postpones the problem if real sell-through stays weak. Boutique stock, distributor stock, reference age, final-client sales, returns and discounts must be consolidated, then separated by whether the cause is poor location, poor price or a product with no demand.
Clean-up must protect brand value. Targeted transfers, reduced orders, buy-backs of certain pieces and private events are preferable to visible, broad discounting. Commercial targets should reward healthy turnover and margin, not just deliveries to the partner. Only then does export data reflect demand again rather than a shift in stock location.
Reallocate the network around client pools
China can no longer be managed as a single bloc defined by a handful of top-tier cities. Domestic mobility, digital commerce and the rise of new wealth pools are changing where clients come from. Some boutiques serve a sales function, others recruitment, service or representation. Their performance should be assessed against that actual role.
A useful map links place of residence, place of purchase, digital enquiries, after-sales interventions and client value over several years. It shows where a full boutique is justified, where an appointment-only salon suffices, and where a multi-brand partner remains more effective. Shrinking the network can sometimes increase coverage if the freed resources strengthen clienteling and service.
Relearn how to create desire without relying on footfall
In an expansion phase, scarcity and brand visibility are sometimes enough to convert. In a more selective market, the client asks for more: understanding of the movement, price legitimacy, provenance, servicing options and a relationship with the house. Teams must move from a status narrative to product mediation.
The recovery dashboard combines sell-through, aged stock, qualified appointments, acquisition cost, repeat purchase and service turnaround. It also measures clients won back, not only new ones. China remains one of the leading markets worldwide for Swiss watchmaking; its rebuild will be less spectacular than a shipment rebound, but far more solid if it starts from clients already known and served.