China's Luxury Watch Market Slips to Sixth Place: A Fragile Recovery

China's Mainland Watch Market: A Steep Decline

According to the latest data from the Federation of the Swiss Watch Industry, the Chinese mainland watch market has experienced a dramatic fall from the world's second-largest market to sixth place in just two years. This sharp decline highlights the ongoing fragility of the luxury watch sector in the region. Between 2024 and 2026, the ranking shifted significantly:

2024: United States, Mainland China, Japan, Hong Kong, United Kingdom
2025: United States, Japan, Mainland China, Hong Kong, United Kingdom
2026 H1: United States, France, Japan, Hong Kong, United Kingdom, Mainland China

Even when excluding France (whose surge is partly due to transit exports), the mainland market continues to contract, with a 5% drop in H1 2026 and a steeper 16.5% decline in June alone.

Global Market Context

The U.S. market also saw a 14.8% decrease in H1 2026, but this is largely due to an exceptionally high base in 2025, when pre-tariff shipments caused a 150% spike. Meanwhile, the United Kingdom has solidified its position as a stable pillar for Swiss watches.

Watches vs. Jewelry: A Tale of Two Segments

The three major watch groups—Richemont, Swatch Group, and LVMH—all reported growth in H1 2026, but the growth is predominantly driven by jewelry, not watches. In mainland China, watch sales are sluggish while jewelry sales are booming.

Richemont

Richemont's specialist watchmaking division grew 8%, led by Vacheron Constantin, Jaeger-LeCoultre, and A. Lange & Söhne, with strong performance in the U.S. and Japan. However, in mainland China, watch sales declined, while jewelry (Cartier, Van Cleef & Arpels, Buccellati) saw growth.

Swatch Group

Swatch Group's watch and jewelry brands grew 9.5% in H1 2026, with a 9% increase in Greater China. Yet, third-party retailer replenishment orders remain low, and growth is more pronounced in jewelry (Harry Winston).

LVMH

LVMH's watch and jewelry division grew 11%, driven mainly by jewelry brands like Tiffany, Bulgari, and Chaumet.

Shifting Consumer Preferences

Since 2026, the sales mix of Swiss watches worldwide has changed notably. Two-tone watches have seen a 20% surge in sales, while full gold watches have dropped by 6.5%. This shift is attributed to record-high gold prices, prompting consumers to opt for more affordable two-tone alternatives. This trend contradicts the earlier belief that the market was consolidating at the top, indicating that when prices reach a tipping point, consumers seek better value.

The Rise of Affordable Timepieces

Another interesting development is the 23.8% growth in watches priced under 0 (approximately ¥3,373). This is largely driven by the continued popularity of Swatch collaboration models, which have become a phenomenon in their own right.

For enthusiasts and collectors, these trends underscore the importance of understanding market dynamics. While the luxury watch market in mainland China faces challenges, the global picture is nuanced, with opportunities in other regions and segments.