Key facts
- Rolex has implemented a second global price increase for its gold watches this year, averaging 5%.
- This follows a previous, non-global price rise in January.
- Richemont's Cartier also increased gold watch prices by up to 10% last month.
- The price hikes are attributed to rising gold prices and strong demand from wealthy consumers.
- Demand for high-end Swiss watches, particularly those made of precious metals, remains robust.
- Exports of luxury Swiss watches (over 20,000 Swiss francs) have more than doubled since pre-pandemic.
Rolex has again increased the global prices of its gold watches, with an average rise of 5% this month. This marks the second such increase this year, a rare occurrence for the luxury watchmaker, following a smaller, non-global rise in January.
This move underscores the sustained strong demand for premium products from wealthy consumers, even as the broader luxury goods market experiences a slowdown. Other high-end brands, such as Richemont-owned Cartier, have also implemented price hikes, with Cartier raising prices on its gold watches by up to 10% last month.
Industry analysts suggest that the luxury watch market is resilient, with brands successfully marketing watches as investment pieces to affluent clients. This strategy appears to be working, even as middle-class consumers reduce their spending on luxury items. The rising price of gold, which has nearly doubled since 2024, is a contributing factor cited by Richemont for its price adjustments.
For specific models, the price increases have been more substantial. For instance, a white gold version of Rolex's Cosmograph Daytona has seen its price rise by 14% this year and 33% since 2024. Swiss exports of watches valued above 20,000 Swiss francs have more than doubled compared to pre-pandemic levels, now accounting for over two-thirds of the industry's total value.