Why luxury watch empire Swatch Group AG is hiking up prices: as demand for high-end timepieces stays strong, brands like Omega, Longines and Tissot follow in the footsteps of Rolex SA

Feb 6 , 2023

Luxury watch empire Swatch Group AG is hiking up its prices across brands like Omega and Longines. Photo: Felix Wong

Swatch Group is raising prices across brands like Omega, Longines and Tissot, including its budget-friendly MoonSwatch; and boosting more in some regions over others, to offset weaker currencies

The conglomerate’s chief executive Nick Hayek said it could reach record highs in sales of up to US$9.8 billion in 2023, as China reopens, while the Omega Speedmaster’s price has also gone up

Luxury watch conglomerate Swatch Group AG raised prices across a slew of its brands, increasing the cost of the flagship Omega Speedmaster by about seven per cent in the UK and Europe, according to investment bank Jefferies.

Omega’s Speedmaster Chrono Chime for everyday wear. Photo: Omega

The price of an Omega Speedmaster automatic watch with a moonphase complication in the UK is now US$13,060 as of February 1, up 7.1 per cent compared to January last year, Jefferies analysts led by Kathryn Parker said in a report. Prices for the same model rose an average of 6.8 per cent in Italy and two per cent in the US.

Longines Master Collection. Photo: Longines

Increases at Swatch brands including Omega, Longines and Tissot follow a similar move by the top Swiss watchmaker Rolex SA to boost prices by about 2.5 per cent in the UK and Europe in January. Rolex had already raised prices across the continent in the autumn, in an unusual move, to counter rising costs and currency fluctuations caused by a strong US dollar and Swiss franc against a weaker sterling and euro. Rolex usually raises prices just once a year.

The uplift shows Swatch brands believe consumers will accept steeper prices as demand for high-end timepieces stays strong.

Rolex is increasing its prices in certain countries to offset weaker currencies. Photo: Shutterstock

Luxury watch brands including Rolex and Omega are ramping up prices in the UK, Japan and South Korea by more than other locations to offset weaker currencies and to prevent price discrepancies across regions and countries, according to the note. For example, the cost of an Omega Seamaster 300 dive watch rose by at least 6.5 per cent in all three countries, compared to more modest uplifts in the US and China.

The MoonSwatch Collection has 11 models named after different objects in the solar system. Photo: Omega

The price of the hit MoonSwatch, the budget-friendly, bio-plastic Swatch version of the Omega Speedmaster, rose in Korea and Japan by more than seven per cent. Swatch Group, which sold a million MoonSwatch units last year, did not increase prices in the US, UK and Europe where the popular timepiece sells for about US$283.

A spokesman for Swatch Group declined to comment on the report.

Swatch chief executive Nick Hayek told Bloomberg News last week that the company could hit record sales of as much as US$9.8 billion in 2023, as China reopens.