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The first defining phenomenon is the growing financialization<\/b> of these products. For several years now, certain iconic watches from Rolex or Patek Philippe, as well as High Jewelry pieces by Cartier or Van Cleef & Arpels, have been perceived not merely as consumer goods, but as tangible assets<\/b>. Against a backdrop of financial market volatility and geopolitical uncertainty<\/b>, this shift is significant; it reflects a drive toward asset diversification into \u201creal\u201d assets that hold intrinsic and symbolic value.<\/p>\n
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However,the market has recently shifted gears<\/b>. Following the post-Covid euphoria, marked by a surge in prices on the secondary market, a normalization has begun<\/b>. Collectible watch indices have been corrected<\/b>, certain models with strong valuation momentum have lost their appeal, and waiting times have shortened. This return to equilibrium is healthy, as it marks theend of a phase of overheating<\/b> and refocuses the market on its fundamentals: rarity, craftsmanship, and brand history.<\/b><\/p>\n
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In other words, the investment logic is not disappearing, but it is becoming more selective and less opportunistic.<\/p>\n
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In this context, the recent results from Herm\u00e8s and LVMH are particularly revealing<\/b>. While several luxury segments, notably fashion and spirits, are showing signs of a slowdown, jewelry and watchmaking continue to demonstrate resilience<\/b>.<\/p>\n
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At LVMH<\/b>, the \u201cWatches & Jewelry\u201d division<\/b>, driven notably by Tiffany & Co. and Bvlgari, is showing stronger momentum than other divisions of the group<\/b>. For its part, Herm\u00e8s<\/b>, although less exposed to watchmaking<\/b>, benefits from an extremely high-end positioning<\/b> that allows it to maintain strong desirability for its jewelry and watch lines.<\/p>\n
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The second key trend is market polarization<\/b>. Watches and jewelry are not immune to the global slowdown<\/b>, but this primarily affects the mid-range segment<\/b>. The ultra-luxury segment, meanwhile, remains supported by an ultra-wealthy clientele less sensitive to economic cycles. Conversely, the mid-range segments are more affected by budget trade-offs<\/b>, particularly in a context of persistent inflation. This polarization reinforces the competitive advantage of Houses capable of capitalizing on exclusivity and scarcity.<\/p>\n
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But it is undoubtedly the third factor\u2014often underestimated\u2014that is reshaping the market most profoundly: generational change<\/b>. Contrary to popular belief, Generation Z is not turning its back on ostentation; it is redefining its codes<\/b>. On social media, luxury watches and jewelry remain markers of success and status<\/b>, sometimes even more visible than before. However, this display is accompanied by a heightened expectation for meaning and legitimacy.<\/b><\/p>\n
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Owning a Rolex or Cartier piece is no longer enough; one must also be able to tell its story, justifying the choice through craftsmanship, rarity, or resale value<\/b>. Ostentation<\/b> thus becomes more \u201crefined\u201d<\/b>. The purchase is no longer purely impulsive; it fits into a hybrid logic, blending pleasure, image, and legitimacy.<\/p>\n
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This highly connected generation also plays a key role in shaping the secondary market<\/b>. By staying informed in real time about prices, trends, and the liquidity of pieces<\/b>, it helps reinforce the idea that watches and jewelry can be viewed as assets in their own right.<\/b><\/p>\n
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Finally, the geopolitical and macroeconomic context<\/b> is once again becoming a central risk factor for demand<\/b>. The slowdown in China continues to weigh on the sector, but contrary to expectations,the Middle East is no longer fully fulfilling its role as a growth driver<\/b>. The intensification of conflict in the region could curb local consumption of luxury goods, particularly in key hubs such as Dubai or Doha, where a portion of purchases is strongly correlated with regional confidence and stability.<\/b><\/p>\n
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In this context, tourist flows, particularly to Europe, are becoming more uncertain<\/b>, even though they had largely supported the post-COVID recovery. Luxury brands must now cope with more erratic demand, sensitive to short-term geopolitical shocks, and less predictable than in the previous decade.<\/b> This new reality requires more precise management of inventories, distribution networks, and investments, in an environment where visibility remains limited.<\/p>\n
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