Swatch Group’s Global Strategy Under Scrutiny Amid Sales Decline

Since the closure of Baselworld, the watch industry has rallied around Watches and Wonders Geneva as its central global showcase. Each spring, Rolex, Richemont, LVMH, and leading independent brands converge there to unveil novelties, attract international press coverage, and court collectors and retailers.

The Swatch Group remains absent—by choice. This decision might once have seemed like a bold display of independence. Today, it looks increasingly like stubborn isolation. The Group has neither created a comparable platform of its own nor provided a coordinated alternative for its brands to engage with the industry on an equal stage.

In an industry driven as much by storytelling and visibility as by craftsmanship, this absence has consequences. Competitors build anticipation and dominate headlines each year, while Swatch Group’s brands release information sporadically, often forcing the media to chase news instead of receiving it in a structured, impactful way.

Uneven Presence: Silence in Some Markets

This detachment is also evident at the local level. In countries like Portugal, Swatch Group’s presence has become almost exclusively digital—and minimal at that. Press releases are sent out, but no physical presentations or watch previews are organized. Omega, the Group’s flagship brand, last held a press event in Portugal in 2023.

For local media, this creates a void. Requesting watches for editorial reviews often results in no response at all, while in other markets, Swatch Group continues to hold brand events as expected. The contrast is striking and reflects a fragmented, inconsistent approach that undermines the Group’s image as a cohesive powerhouse.

This matters. Watch brands thrive on physical engagement—seeing, handling, and experiencing the products. When a brand disappears from the local landscape, it inevitably fades from the local conversation.

Financial Results Reflect Strategic Drift

The Group’s recent half-year results underscore these concerns. Swatch Group reported sales of CHF 3.06 billion for the first half of 2025, down 7.1% at constant exchange rates (10.4% on a comparable basis). Operating profit fell to CHF 68 million, down sharply from CHF 202 million in the same period of 2024.

The decline stems mainly from Greater China, where wholesale sales fell over 30% due to third-party store closures, and even the Group’s own retail business was down 15%. Swatch Group has signaled hopes for a mild rebound in the second half of the year, but those expectations will be tested by new U.S. customs duties on Swiss watches—a market where the Group has only recently achieved double-digit growth.

In short, Swatch Group is shrinking where it was once strongest, while fresh obstacles are emerging where it had begun to recover.

Principles or Paralysis?

The Group partly attributes its drop in profitability to its policy of maintaining production capacity and safeguarding jobs in Switzerland. This stance is commendable from an industrial perspective, but it cannot mask the impression of a company becoming strategically insular.

Competitors are leaning into visibility, agility, and regional engagement, while Swatch Group appears to be standing still, relying on heritage and sheer size to carry it forward. In a fast-evolving luxury market, that approach looks increasingly risky.

A Risk of Becoming Absent by Default

Swatch Group is not faltering because its products are weak—they are not—but because it is failing to show up where and when it matters most.

Unless it re-enters the industry conversation, restores its presence in key markets, and prepares for looming trade barriers, the Group risks ceding relevance not through failure, but through absence.