The Brand Dilemma Facing Chinese Watch Exports

Despite growth in both quantity and value, Chinese watch exports continue to face brand challenges. According to the Federation of the Swiss Watch Industry, China will export 534 million watches in 2023, while Switzerland will export 16.9 million. However, the average price of Swiss watches is $1,679, while that of China is only $4. The primary challenge facing Chinese brands is low brand awareness. Müller, head of the consulting firm LuxeConsult, stated that while Chinese watches are comparable in quality to European ones, and some components of Swiss watches are manufactured in China, China lacks brand equity—the value customers attach to a brand—making it difficult to command high premiums. Chinese independent watchmaker Rao Kuan also noted that despite the increasing sophistication of Chinese watches, some people still perceive them as cheap or counterfeit, and changing this perception will take time. In the international high-end watch market, Chinese brands remain a niche player, holding a small share of the global luxury goods market compared to countries like Switzerland, which boast numerous well-known brands.