Luxury Watchmakers Tap Pre-Owned Market for Gen Z

Swiss watch exports plummeted from 25.4 million units in 2016 to just 14.6 million last year, yet 41 percent of Gen Z acquired a luxury watch, spending an average of $10,870. This drastic decline in traditional sales volume masks a surprising shift in consumer behavior, indicating the luxury watchmakers adapting to Gen-Z buying trends in 2026 face a complex market. The industry faces a critical juncture where established metrics no longer fully reflect market realities, particularly concerning younger buyers.

This situation creates a tension: overall Swiss watch exports have drastically declined, but Gen Z is actively acquiring luxury watches at significant price points and high volumes. This divergence suggests that the traditional export model is failing to capture the full scope of luxury watch consumption, as new purchasing patterns emerge.

The luxury watch market is not dying but transforming, with success increasingly dependent on understanding and catering to Gen Z's specific brand loyalties and purchasing channels, especially the pre-owned segment, leading to a potential recovery for adaptable brands. This transformation challenges long-held industry assumptions about growth and distribution, forcing a re-evaluation of market strategies.

Gen Z's Unexpected Luxury Appetite

The average spend for a luxury watch among Gen Z reached $10,870, according to Robb Report. This significant investment contradicts stereotypes about younger generations' spending habits, highlighting their commitment to luxury timepieces. Among the under-30s, predominantly Gen Z, four Rolex models, three Omega watches, and two Cartier timepieces are among the ten most frequently purchased models. The Rolex Datejust is the most popular model among this demographic.

Gen Z is not shunning luxury watches but is highly discerning, gravitating towards established, iconic brands with proven heritage and resale value, and willing to spend significantly. This demographic's focus on specific heritage brands indicates a preference for enduring value over fleeting trends, a preference that challenges newer, less established luxury lines. Their spending power and brand loyalty represent a crucial segment for the luxury watch industry.

The Rise of Pre-Owned and High Purchase Volume

The future success of luxury watchmaking hinges on embracing digital channels, understanding the value proposition of both new and pre-owned markets, and reinforcing brand desirability among younger, highly informed consumers, as evidenced by early signs of recovery. Established luxury brands like Rolex, Omega, and Cartier are inadvertently leveraging Gen Z's 'collector' mentality and engagement with the pre-owned market to maintain relevance and sales, indicating that brand equity, not just new production, is their most valuable asset. Companies that fail to understand Gen Z's dual appetite for both new and pre-owned luxury watches, and their willingness to spend significant sums on multiple pieces annually, risk misinterpreting market signals and missing out on a crucial, high-spending demographic. By Q3 2026, brands failing to adapt their strategies for Gen Z's purchasing habits will likely see continued stagnation in new unit sales, while adaptable brands such as Rolex could further solidify their market dominance.