Luxury watchmakers including Audemars Piguet and Hublot are investing heavily in new factories, even as Swiss watch exports decline. These brands see vertical integration as key to long-term success, prioritizing quality and control over output volume.

The expansion follows a post-pandemic boom that boosted confidence earlier this decade. Audemars Piguet’s new 23,700-square-meter Arc facility in Le Brassus consolidates production under one roof. Similarly, Hublot’s 13,650-square-meter H3 factory in Nyon features automated systems and client spaces.

Despite falling export volumes, companies are focusing on premium products and bespoke services to sustain profits. Brands like Rolex and Hermès are also expanding, with multi-million franc projects underway. However, some experts warn that past optimism may now clash with current economic headwinds.

Future growth hinges on maintaining exclusivity while managing high capital costs. Analysts question whether increased capacity will match slowing demand, especially outside the ultra-luxury segment where margins remain strong.