Morgan Stanley, the renowned American financial powerhouse, recently unveiled its comprehensive analysis of the 2023 performance of Swiss watch enterprises, shedding light on a pivotal revelation concerning Rolex.
The report, unveiled on February 28th, highlights Rolex’s unprecedented financial feat, boasting a staggering revenue of 10.1 billion Swiss francs, or around IDR 180 trillion, for the first time in 2023.
This milestone is a turning point in Rolex’s esteemed history, solidifying its position as the leading Swiss watchmaker and reinforcing its industry dominance.
The historic revenue surge is driven by Rolex’s strong market presence, with retail market share increasing by over 30 percent, fueled by sustained demand from customers. This cements Rolex’s status as a symbol of luxury horology.
How Rolex Hit CHF 10.1 Billion Sales Record in 2023
Before this milestone, Rolex had already etched its name in history in 2020, emerging as the world’s largest watchmaker amidst the pandemic.
With the latest report emphasizing Rolex’s IDR 180 trillion in sales for 2023, the brand embarks on another historic journey, marking a significant milestone since its inception in 1905.
Producing 1.24 million watches last year, Rolex is renowned for its iconic models like the Daytona, Submariner, and Rolex Datejust.
According to Morgan Stanley, Rolex strategically boosted the availability of its steel watches, including the Submariner, likely contributing significantly to the reported surge in sales.
The trajectory of Rolex’s growth has been remarkable year after year. In 2020, amidst the challenges of COVID-19, Rolex generated CHF 3.8 billion in revenue, or around IDR 70 trillion, by producing approximately 810,000 timepieces.
The following year, in 2021, its revenue nearly doubled, soaring to CHF 7 billion, or IDR 125 trillion, with 1,050,000 pieces manufactured.
In 2022, the brand sustained its momentum, recording a 15.5% growth, amassing CHF 8.2 billion or around IDR 146 trillion in revenue, and producing 1,200,000 watches.
Finally, in 2023, Rolex achieved an unprecedented milestone, surpassing CHF 8.8 billion or IDR 180 trillion in revenue, solidifying its position as an industry leader.
Other Top Brands with Surging Sales
While Rolex may lead the pack in sales, other watch companies are also experiencing a boost. Other esteemed Swiss luxury watch brands have also seen upticks in their sales, though they have yet to surpass Rolex’s total sales.
In particular, the “Big Four” of the luxury watch market collectively seized an impressive 43.9% market share last year. They are Audemars Piguet, Patek Philippe, Cartier, and Richard Mille.
1. Cartier
Cartier, securing the second spot in the 2023 top five watchmaker lineup, achieved sales worth 3.1 billion CHF, or around IDR 55 trillion.
According to Morgan Stanley’s analysis, Cartier’s balanced customer base, with women comprising approximately two-thirds and men one-third of its clientele, has been a significant boon to its success.
2. Omega
Omega closely trailed in third place, achieving a total of CHF 2.5 billion in sales, or equivalent to IDR 51 trillion.
Cartier competes head-to-head with Omega in the women’s watch market, offering a diverse range of enticing entry-level products tailored to first-time buyers, including Gen Z and millennials.
3. Audemars Piguet
Audemars Piguet maintains a steady position in fourth place, a status it has upheld for the past three years. The brand saw a modest uptick in sales in 2023, with an estimated 51,000 watches sold, a 2% increase from the previous year.
During his notable 11-year tenure, departed CEO François-Henry Bennahmias propelled Audemars Piguet’s sales fourfold through an assertive sales strategy, culminating in the brand crossing the CHF 1 billion threshold for the first time in 2018, which was equivalent to IDR 18 trillion.
In 2021, Audemars Piguet became the fourth-largest watch brand by sales in Switzerland. The company experienced exceptional success in 2022.
This is primarily attributed to its impressive lineup of 50th-anniversary specials, which accounted for over 90% of its sales and facilitated Audemars Piguet’s crossing of the CHF 2 billion milestone, or around IDR 36 trillion, for the first time.
4. Patek Philippe
Patek Philippe secured the fifth spot, selling around 70,000 watches in 2023, marking a 3% uptick from the previous year.
The brand achieved a significant milestone by surpassing CHF 2 billion, or around IDR 36 trillion, in revenue for the first time, steadily ascending over the past four years.
Their revenue trajectory saw a notable climb, starting at CHF 1.2 billion or IDR 21 trillion in 2020, followed by CHF 1.5 billion or IDR 27 trillion in 2021, and CHF 1.8 billion or IDR 32 trillion in 2022, culminating in a thriving CHF 2 billion or IDR 36 trillion in 2023.
5. Richard Mille
According to Watch Analytics, Richard Mille has undergone a remarkable journey in recent years, achieving extraordinary feats. Before 2019, it didn’t even secure a spot within the top 20 luxury watch brands.
However, in 2019, it made an impressive debut, claiming the eighth position. By 2020, it ascended another rank, generating revenues of CHF 788 million, approximately equivalent to IDR 14 trillion.
In 2021, Richard Mille surpassed the CHF 1 billion mark, roughly IDR 18 trillion, further solidifying its position. By 2022, it climbed to sixth place, amassing CHF 1.3 billion, equivalent to IDR 23 trillion.
Finally, in 2023, its revenue reached CHF 1.5 billion, approximately IDR 26 trillion, cementing its remarkable growth course.
Vacheron Constantin’s Milestone: The Billion-Dollar Sales Club
Vacheron Constantin made a noteworthy entrance into the ‘Billionaires Club’ last year, marking a significant milestone under the stewardship of CEO Louis Ferla. The brand achieved an impressive 18% increase in sales, reaching CHF 1.097 billion, or approximately IDR 20 trillion.
Morgan Stanley’s analysis indicates that the world’s oldest watch company has reaped the rewards of heightened demand observed among peers like Patek Philippe and Audemars Piguet.
This surge in demand has led to prolonged waiting lists for these brands’ coveted iconic models, such as the Nautilus and the Royal Oak.
Vacheron Constantin’s Overseas collection has emerged as a compelling alternative for fans seeking options amidst the yearly scarcity of the Nautilus and the Royal Oak at retail outlets.
With a legacy of over 260 years, Vacheron Constantin is revered as one of the world’s oldest watchmakers, renowned for its blend of elegance and intricate craftsmanship.
The recent addition to its Les Cabinotiers collection exemplifies Vacheron Constantin’s commitment to offering distinctive and exceptional timepieces.
This report shows a robust and thriving watch industry, with numerous brands achieving record-breaking sales figures year after year. The competition among luxury watch brands has intensified significantly, driven by diverse price ranges catering to various consumer preferences.
Overall, the industry experienced a notable uptick in exports, rising by 7.6% compared to 2022, with Rolex leading the pack with the most substantial increase. It remains to be seen how these brands will fare in sales throughout the year.
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