raditionally one of the largest for luxury goods and watches, the Asian market nosedived in 2024. Month-on-month figures for September 2024 show that Hong Kong (-34.6%), China (-49.7%) and Singapore (-13.9%) accounted for more than 80% of the total decline in Swiss watch exports. South Korea (-19.8%), Taiwan (-29.8%) and Thailand (-34,6%) also contracted. The Asia region (-22.6%) recorded the worst monthly performance. This significant downturn in sales has consequences upstream, from furloughs and redundancies to brands and suppliers selling up, with no light at the end of the tunnel before 2026 at best.

Still, there is always India, the future “miracle market” that will cure Swiss watchmaking’s woes. With Pavlovian predictability, the industry looks at the region’s demographic statistics and GDP growth and naively believes they are an instant remedy; the keys to an improbable reprieve. Despite trade deals between Switzerland and India, taxes and tariffs remain high.

Asia of course remains a magnet for Swiss brands. As we wait for the Indian subcontinent to deliver, and alongside the traditional key markets of Greater China, Southeast Asia and Japan, the potential of “tiger cub” economies such as Indonesia, Cambodia and Vietnam is far from negligible. Not forgetting the Philippines, a market that is often overlooked yet has its own community of watch enthusiasts and collectors. For Swiss watchmakers, we’re talking less about volume sales and more about value sales, although every segment is represented.

A gathering of Watch Cringe Manila, a group of Filipino watch collectors.

Given average purchasing power in the Philippines, the heart of the market is still the economic capital Manila, where the majority of Swiss brands are present, followed by Cebu, the country’s second most important city. The main difference is that the most prestigious brands (Rolex, Patek Philippe and group-owned brands) are in the capital while Cebu is home mainly to entry-level and mid-range brands (in particular Swatch Group). Alongside Swiss makers, the Japanese also have an established presence, starting with Seiko.

Lucerne Luxe is the country’s retail heavyweight for luxury timepieces, operating across all price segments through various stores. It carries the majority of Swiss brands including Rolex, the undisputed favourite of a wealthy clientele, many of whom are from the Chinese Filipino community. And there is no doing things by halves: the tiny percentage of those with the means to acquire an expensive, not to say very expensive, watch have almost limitless purchasing power. I remember spending a day talking timepieces with an acquaintance. He told me his favourite brand was Patek Philippe. Any particular model, I asked. “All of them,” he replied. “To be honest, I’ve lost count of how many I own.”

Matthew Lopez

A consultant, collector, one of the country’s few watch journalists and co-founder of Watch Cringe Manila, Matthew Lopez is a seasoned observer of the watch market in the Philippines. He shares his thoughts and analysis.

Europa Star: How would you describe the luxury watch market in the Philippines?

Matthew Lopez: The Philippines luxury watch market, while classified as emerging, is not yet on a par with the established prestige found in regions such as Hong Kong or Singapore. The industry is predominantly brand-driven, with minimal emphasis on independent watchmakers or craftsmanship. However, a notable transition is under way, as collectors increasingly adopt a broader view, moving beyond simple brand loyalty. Initiatives such as Watch Cringe Manila, which I co-founded, alongside independent online forums, WatchCrunch being one example, are instrumental in fostering this shift. There remains considerable potential for independents like Parmigiani Fleurier as well as established names such as Ulysse Nardin and MB&F to cater to rising local demand.

Willyn Villarica, a certified jewellery appraiser from the National Association of Jewelry Appraisers in the US, observes that the secondary market for luxury watches in the Philippines is thriving, with Rolex and Patek Philippe leading the way. Market prices have generally returned to pre-pandemic levels, starkly contrasting with the inflated valuations at the height of the pandemic. Villarica notes that demand for smaller independent brands is constrained by concerns over after-sales support and the prestige associated with established timepieces.

What is the general landscape of watch brands in the Philippines?

Rolex remains the dominant force, admired not just for its prestige but also for the aspiration it inspires across generations. The classic Datejust and GMT-Master II are particularly sought-after, though lengthy waitlists have made acquiring these models a challenge. Consequently, many have turned to the secondary market where prices command a significant premium, while others travel abroad, especially to Hong Kong or Singapore, now that international travel has resumed.

For those unable to secure a Rolex, Patek Philippe ranks high in the luxury hierarchy. Models such as the Nautilus and Aquanaut enjoy strong demand, while more intricate complications such as perpetual calendars are relatively accessible. Patek boasts a diverse collector base, ranging from the affluent to the newly wealthy. The brand’s recent releases have failed to capture the same attention as its sports models, although long-time collectors remain loyal.

In the mid-tier segment, Omega and TAG Heuer are particularly popular. Both brands have strengthened their presence: Omega has expanded its boutique at Greenbelt 5 and TAG Heuer has revamped its Ortigas branch to meet increasing demand. Omega’s recent sales surge is attributed to the successful MoonSwatch collaboration, while TAG Heuer’s partnership with streetwear brand KITH appeals to millennials who are nostalgic for the brand’s 1990s Formula One watches.

What about Swiss and Japanese brands?

Rolex and Patek Philippe dominate the Philippines watch market, symbolising status and prestige. Brands like Audemars Piguet, IWC and Panerai are gaining traction, particularly among male collectors who prefer larger wristwatches. This contrasts with collectors in other regions, who prefer more modestly sized timepieces from brands such as Cartier and Piaget.

Japan’s Seiko boasts a dedicated following across various demographics, from security personnel to high-profile celebrities who look forward to new releases. However, despite brand loyalty, Seiko has struggled to establish a significant presence in the Philippines, in contrast to its influence in Thailand, the United States and Hong Kong.

What is the potential of the Philippines watch market?

A rising middle class has been closely linked to economic growth since the 2010s, with annual expansion averaging 6-7%. Despite a brief pandemic-induced disruption, the economy has rebounded, empowering Filipinos to explore luxury markets beyond traditional destinations. This shift has brought watch collecting into the mainstream, moving away from its former niche status.

As disposable incomes rise, Filipino consumers are becoming more discerning, seeking brands that offer distinctive value beyond the conventional. However, established watch brands remain pivotal in attracting both new and established collectors, thereby enhancing their appeal in this evolving market.

What about client demographics?

The primary clientele for luxury watches in the Philippines consists of affluent upper-middle-class individuals, overseas Filipinos with substantial earnings and dedicated collectors with the ability to invest in high-end timepieces. This demographic reflects an increasing appetite for luxury, driven by rising disposable incomes and a desire for status symbols. As the market matures, these consumers are becoming increasingly discerning, preferring brands that exemplify both quality and prestige.

To expand the middle-class base and capture a larger share of the luxury goods market, the Philippines must achieve an annual GDP growth rate of at least 6% in the near term. Sustained economic growth is vital for enhancing Filipino incomes, thereby enabling a broader segment of the population to participate in the luxury market. Without such progress, the potential for a thriving watch-collecting culture may remain confined to a select few.