My watch month of September: pressure equalisation and irony versus "The Truman Show" of the watch world

During my visits to Geneva, my gaze fell countless times on the famous fountain, which is also in my photo archive umpteen times. To be honest, however, I have never really thought about what this symbol of the city of Geneva is all about.

And the jet d'eau (water jet) actually has a practical connection to the watch and jewellery industry. In the late 19th century, a hydraulic system was operated in Geneva that utilised water power to supply energy. Whenever machines in the workshops of jewellers and watch and jewellery manufacturers were switched off, the pressure in the water pipes rose.

To regulate this overpressure, the water was channelled upwards through a pipe. This is how the first jet of water, around 30 metres high, was created by chance around 1886. Today, the jet d'eau reaches an impressive 140 metres.

Ways of pressure equalisation in the Swiss watch industry

The watch industry is also feeling pressure these days, and a lot of it. However, releasing this pressure is not as easy as with the jet d'eau. Swiss manufacturers in particular are looking for ways to deal with the oppressive 39 per cent US tariff. Possible ways forward after the mass export of watches to the USA until the Trump tariffs come into force include price increases, margin cuts, opening up new markets and possibly also special attention for the US President.

In view of his fickleness, nobody - probably not even he himself - knows if and when there will be a return to moderate tariffs. What is certain, however, is that the current tariff-based price increases will not be reversed. Even well-off luxury customers are now reacting sensitively to the increasingly frequent price increases of the top brands.

Swatch and Raymond Weil react with irony

In such unpredictable times, irony can help to relieve pressure. Swatch Group CEO Nick Hayek has opted for "positive provocation" with a very special "What if ..." model from Swatch. On the square dial, the Arabic numerals 3 and 9 have been reversed, referring to the 39 per cent US tariff imposed on Switzerland. A large percentage sign can also be seen on the back of the battery compartment cover.

If the US tariff is revised downwards, the sale of this watch will be stopped immediately. "Hopefully it's just a limited edition," it says on the Swatch website.

Raymond Weil has also launched a 39 per cent inch watch. There are 39 examples of the limited "Millesime" version with a diameter of 39 millimetres and a 39-% reference on the dial.

These watches won't change anything at all. But they will bring a smile to many faces in uncertain times - after all. Because the occasions for this are currently becoming fewer rather than more.

A good summer for the German watch industry

Things are going somewhat better for the German watch industry. The figures published by the Federal Association for Jewellery, Watches and Related Silverware show a lull in jewellery sales for the summer month of July, but a significant increase in watches.

After months of weakness in the sector, exports of watches and watch parts rose significantly in July, increasing by 10.5 per cent compared to the same month last year. In figures, this corresponds to a volume of € 176 million.

Nevertheless, it is not all sunshine and roses in Germany. At least the pressure on German jewellers is growing. In September, it was announced that Rolex intends to cut around 40 distribution licences by the end of 2026, around two years after taking over the Bucherer jewellery chain. Jeweller Rüschenbeck, a long-standing partner of the brand with the crown, is particularly affected.

And there is probably more to come. The Swiss newspaper Handelszeitung quotes industry expert Oliver Müller as saying: "Over the last five years, Rolex has reduced its dealer network by around 20 per cent to the current 1,250 points of sale. In the medium term, there will be fewer than 1,000 and in the long term a maximum of 800. A good half of these will be managed by the company itself via Bucherer and other acquisitions."

Geneva Watch Days - "The Truman Show" of the watch world

Incidentally, the tense situation for Swiss watch manufacturers did not dampen the mood at the Geneva Watch Days. The worries were concealed with typical Swiss restraint and neutral politeness, allowing record figures to be announced at the end.

Looking back, the watch days on Lake Geneva - always with a view of the famous fountain - seemed a little like a "The Truman Show" of the watch world detached from reality. In the film, Truman Burbank lives in an artificially created city with actors as his family, friends and work colleagues, where everything seems to be safe and perfect. In the end, he opens the door to the unknown: the real world.

The door to the real, imperfect world of watches also opened shortly after the Geneva Watch Days. In the form of the official export statistics of the Swiss watch industry for the month of August. In total, watches worth CHF 17 billion were exported, which corresponds to a significant drop of 16.6 per cent compared to the same month last year. In terms of volume, it also fell by a good 16 per cent to one million units.