Watch consumers seek sustainability and transparency
The Deloitte Swiss Watch Industry Study 2020 revealed that more than 50 percent of consumers surveyed said that sustainability was especially important to them. A vast number.
For Gen Z buyers in particular – those born between 1997 and 2012 – inclusivity, sustainability, and traceability are essential.
And considering members of that generation, together with millennials, are expected to account for 70 percent of the global personal luxury goods market by 2025, according to consultants Bain & Company – it is clear the very meaning of ‘luxury’ is being reshaped.
But along with the issue of sustainability comes a parallel concern – transparency and traceability. In other words where exactly the products used in luxury timepieces come from and proof to confirm origins.
Precious metal and precious stone supply chain due diligence is becoming a matter of urgency for watch brands, whose reputations could be put on the line by mining in high-risk areas.
The Fondation de la Haute Horlogerie (FHH) – which works to promote excellence and sustainability in watchmaking – addressed this subject at a seminar last year titled The Watch Industry and Due Diligence’, held in collaboration with the Responsible Jewellery Council (RJC) and the Organisation for Economic Co-operation and Development (OECD).
The FHH aims to “inform, train and accompany the watch and jewellery industry in its social and environmental transition” – but this is no small task, as confirmed by the Deloitte Swiss Watch Industry Study 2020. Almost 90% of the executives taking part in the study said they believed sustainability to be a critical issue for the Swiss watch industry, yet “only half actively communicate their initiatives and less than one-third publish a sustainability report.”
But it doesn’t have to be this way.
To create full transparency, supply chain traceability is key. This is the process of tracking the source and journey of products and their inputs, from the very start of the supply chain through to its end-use. By mapping the supply chain and sharing this data, a transparent sourcing and development process is guaranteed.
Applying traceability to the watch supply chain means that consumers can make informed decisions on their purchases based the item’s environmental and social impact.
And make no mistake, they are making decisions on exactly these issues.