Pre-Owned, Female Buyers and Gen Z: Deloitte’s View on Swiss Watchmaking

By: Maryna Steger

WatchAdvisor expands its editorial scope to broaden the perspective on the watchmaking industry by engaging with analysts, opinion leaders and experts shaping the industry’s long-term outlook.

For the first edition, we spoke with Karine Szegedi, who leads Deloitte Switzerland’s Consumer Products and Luxury Industry practice since over 30 years. She is the driving force behind Deloitte’s renowned Swiss Watchmaking Industry Study and a passionate watch collector herself.

Do you see certain dynamics in the Swiss watch industry – temporary trends versus long-term developments?

If we look back five or ten years, we weren’t talking about pre-owned watches, ESG, the female market or Gen Z. Data was hardly discussed. The focus was mainly on what the industry wanted to push.

During the boom years, the main concern was producing enough watches. We discussed cycles, risks, availability of skilled labour and access to spare parts. Then came the pandemic, and suddenly macroeconomic factors dominated the conversation: currency fluctuations and broader economic uncertainty.

More recently, geopolitics has become a key topic. Political interests influence pricing, supply chains – but also consumers. The big question is: do people continue to buy watches under these circumstances?

Security is another growing concern. If personal security becomes a major issue, will people still wear watches? Or will they buy them primarily as investments? This has fundamentally changed the way we think about the product.

Ten years ago, nobody talked about investing in watches. Today, we actively ask: Why do one buys a watch? Telling the time is no longer the primary reason. With smartwatches and smartphones everywhere, the object and its purpose have evolved.

Speaking of investment – what is changing in that respect?

It is important to distinguish between the primary market and the pre-owned market. Last year, we conducted an in-depth analysis of the pre-owned market, focusing on four core elements: buyers, sellers, products and platforms.

Different generations behave differently. They don’t buy the same products and don’t approach the pre-owned market in the same way. We see a clear generational gap, but also a gender gap – simply because far fewer ladies’ watches are available on the secondary market and at auctions.

From a seller perspective, markets with a less developed primary market naturally also have a smaller pre-owned segment. China is a good example, where this market is only now emerging.

The overarching theme in pre-owned is trust. Platforms play a crucial role here by offering authentication, warranties and certifications. Increasingly, brands themselves are entering the space. Rolex and Vacheron Constantin, for example, now issue certified pre-owned watches. This creates more trust and ultimately more liquidity.

This links back to generational behaviour. Gen Z has a strong shared-economy mindset. Ownership is less important – lending, swapping and reselling are natural. That makes the market more dynamic. In the past, investment meant storing a watch in a safe or passing it on to the next generation.

Is it more about price or mentality when it comes to Gen Z and the pre-owned market?

It is both. We see inheritance-driven spending from younger generations, but also a lot of young buyers attracted by the excitement of trading and flipping watches. Others enter the market with smaller budgets out of pure curiosity.

Once people discover watches, they tend to stay. Many young consumers prefer a well-known brand in the pre-owned market at a lower price rather than buying a new watch from a lesser-known brand. Often, they are under 30 years old.

Do brands speak the language of younger generations?

Most Gen Z consumers buy online. Physical boutiques are more about experiences – events, pop-ups, exhibitions – to understand a brand’s DNA.

Price remains the number one purchase criterion. Young buyers are extremely well informed. They rely heavily on social media, peers and opinion leaders. And those opinion leaders are not necessarily paid brand ambassadors – they are credible voices with authority.

Brands must adapt their communication strategies. You cannot speak to Gen Z the way you did before. Reaching a new consumer world requires a certain willingness to take risks.

Let’s talk about ladies’ watches. How do you assess this segment?

The future is female – and that is a good thing. Gen Z, and women in particular, represent a major growth opportunity. Despite increasing wealth, inheritance and professional success, women remain underrepresented as watch buyers.

Historically, watchmaking has been a male-dominated industry. I bought my first watch for my 40th birthday – a men’s watch – simply because I wanted a complication and there were hardly any suitable women’s models.

To truly engage women, brands must think female from the start – not simply feminise a masculine product. Showing a watch on a wrist is not enough. It has to work with outfits, jewellery and personal style.

Women respond more to design than to technical details, and there are fewer platforms or collectors’ clubs that help them build deep watch knowledge. There is still a lot of potential to unlock.

Where do you see genuine innovation in Swiss watchmaking today?

Design is where most disruption happens. Colours play an important role – they allow brands to react quickly and make watches more visible. Shapes are another area: square watches, for example, have gained strong momentum.

Materials are also evolving. Watches are becoming lighter, more recyclable and reusable. Many young designers are pushing boundaries. That said, consumers usually start with a traditional watch before taking more risks. The challenge is particularly high for independent brands. Longevity, credibility and investment value remain key questions for buyers.

Sustainability – still a key topic or already past its peak?

Sustainability is no longer a differentiator – it is a given. Initially driven by regulation and compliance, it has become part of corporate DNA. Consumers expect it, but they don’t necessarily pay more for it.

Circularity is more interesting, especially in the context of pre-owned and product longevity. Brands simply cannot opt out of sustainability anymore – otherwise they are no longer considered.

Is there a question the industry should ask itself more often?

The industry is much closer to consumers today. CEOs engage directly on social media, and data allows brands to react faster and more precisely.

What I would like to see is stronger collaboration within the Swiss watch industry. Protecting and promoting Switzerland as the home of watchmaking requires more cohesion. There is intense competition – not only between brands, but also from new regions and alternatives. There is a lot to gain by working together.

Finally – are you optimistic about the future of Swiss watchmaking?

I am always optimistic. The industry has proven its resilience time and again. Challenges seem overwhelming at first – COVID being a prime example – yet recovery came faster than expected.

Today, the U.S. and the UK are relatively stable. Asia is softer, but India and the Middle East are growing. There are always ups and downs. The key is to listen to consumers, put the product and the client at the centre, and strive for excellence.