Why did Omega just raise its luxury watch prices by 8 per cent? As Swatch Group’s other brands Longines and Tissot struggle, Speedmaster and Seamaster price hikes could put timepiece collectors off

Jul 11 , 2023

Omega has recently raised its prices in Switzerland, China and the US. Photo: SCMP Archive

While demand for Rolex watches outstrips supply, most Omega models trade below their retail price on the secondary market, including the brand’s covetable Speedmaster and Seamaster watches

Swatch Group is somewhat reliant on Omega for its cash flow, according to Morgan Stanley, with about 60 per cent of its operating profit coming from the brand in 2022

Omega, the Swiss watch brand known for its Speedmaster and Seamaster models, has raised prices by as much as 8 per cent in a move that could hurt sales, according to investment bank Morgan Stanley.

Omega recently raised prices by 2 per cent in Switzerland and China – and by a whopping 8 per cent in the US – the biggest export market for Swiss timepieces, Morgan Stanley analysts wrote in a report, citing their own price tracking data.

Swiss watch manufacturer has now raised prices by 8 per cent in the US. Photo: Reuters

The move comes as other watch brands in the Swatch Group staple struggle to grow revenue and could weigh on sales volumes of top brand Omega, which is the third-biggest Swiss marque by revenue.

“The Omega price increase results from weakness rather than strength,” analysts led by Edouard Aubin wrote in the report. “With some of the group’s leading brands (Longines, Tissot, Breguet, etc) struggling, we estimate that the Swatch Group is increasingly dependent on Omega’s cash flow.”

Customers buy the new edition Swatch AG Mission to Moonshine Gold MoonSwatch at its launch event in Tokyo, on March 7. Photo: Bloomberg

An Omega spokesperson declined to comment.

Swatch Group got about 60 per cent of its operating profit from Omega in 2022, according to Morgan Stanley estimates. The brand, which recently introduced new versions of its Seamaster diving watch collection to mark the 75th anniversary of the model, could see pressure on sales growth following the price hikes.

Omega’s new Olympic 1932 Chrono Chime. Photo: Omega

The US overtook China in 2021 as the top export market for Swiss timepieces. Recent demand is showing signs of weakness however, with exports to the US declining in April for the first time in more than two years. They rebounded in May.