Mario Peserico wears many hats. In addition to his role as Managing Director of Eberhard & Co., he is CEO of Eberhard Italy, president of the CPHE (Permanent Committee of European Watchmaking), president of Indicam (Italy’s anti-counterfeiting organisation), and vice-president of both the Milan Chamber of Commerce and the Swiss Chamber of Commerce in Italy. He also previously served as president of Assorologi, the Italian association of watch manufacturers and importers. These diverse positions grant Peserico one of the most insightful perspectives on the watch market, its performance in 2024 and its prospects for 2025. His view of the industry is balanced, nuanced and… cautiously optimistic.
Premature price hikes
Mario Peserico notes that while 2024 was not a good year overall, the decline actually began in late 2023 when it became clear that the watch market bubble was set to burst. The trend in 2024 merely confirmed what had already begun months earlier.
He identifies some clear causes: “Price increases last year were often too steep and too frequent, typically occurring twice over the year. We first observed this in 2021 and 2022. These hikes came too early and were too high, especially given the rate of inflation and elevated energy prices.”
Mario Peserico also highlights an overreliance on “the perceived elasticity of the Asian market. It was misguided to assume that Asia would purchase any watch at any price.” Given that Asia has been a key driver of global watch growth, its slowdown has inevitably impacted the broader market.
The adaptability of independent brands
However, Mario Peserico doesn’t condemn regular price increases out of hand. They are sometimes necessary, “if only to keep pace with the price of gold. If the price per kilo of gold rises, the cost of gold cases must follow suit.” And yet, the Eberhard & Co. Managing Director also points out that independent houses and big groups face very different constraints. “Listed groups must maintain their margins to satisfy shareholders. Independent brands have more flexibility,” he explains, with Eberhard & Co.’s 100% family ownership in mind. “In essence, you can either increase prices and decrease volume, or vice versa – but you can’t do both simultaneously. The market isn’t infinitely elastic.”
“The landscape for fakes has shifted”
Counterfeiting remains a significant concern. While it might seem logical to assume that a rise in the cost of genuine watches would lead to a corresponding surge in the counterfeit market, Mario Peserico disagrees. “When the price of a Rolex, the most counterfeited brand, increases from €7,000 to €7,500, it’s completely irrelevant to someone who already intended to buy a fake.”
He is, however, more worried about new distribution channels for counterfeits: “The original counterfeit economy revolved around platforms like Alibaba, Amazon or eBay. We were able to combat those quite effectively. But today’s counterfeits are largely sold over social media, which operates differently. We need to overhaul and reinvent our anti-counterfeiting tools. The current ones are no longer fit for purpose.”
Eberhard & Co. optimistic for 2025
Despite these challenges, Mario Peserico remains relatively confident about Eberhard & Co.’s prospects for 2025. “We’ve lost some ground in terms of value, but our average purchase price has increased by 11%. This is positive for us, as we’re gradually moving out of the most competitive €1,500-3,000 segment towards the €2,500-4,000 range. Moreover, markets like the United States and the Middle East are showing renewed interest.” Let’s see what comes out of the upcoming trade show in Geneva, which he considers an unmissable event for the industry.
