China Watch Market 2026: Trends, Brands & Digital Strategy

China’s luxury watch market had the worst year of any luxury category in 2025. Swiss watch exports to China fell 14 to 17% (Bain). But the collapse is not uniform. Ultra-premium watches above RMB 100,000 held their value. Entry-level Swiss brands, those that built China volumes on aspirational pricing between RMB 20,000 and 50,000, took the steepest declines. Simultaneously, the secondhand watch market grew 15 to 20%, and domestic Chinese watchmakers posted their strongest numbers in a decade. The China watch story in 2026 is about a market restructuring, not a market disappearing.

• Swiss watch exports to China: -14% to -17% in 2025 (Bain, worst luxury category)
• Ultra-premium watches (>RMB 100,000): near flat, holding in a declining market
• Secondhand luxury watches: +15% to +20% growth, driven by Feiyu and peer platforms
• Domestic Chinese watchmakers (FIYTA, Seagull, Beijing Watch Factory): strongest growth in a decade
• Xiaohongshu watch content: movement detail posts, “worth it” comparison notes up +40% year-on-year
• Smart/sports watch market (Apple Watch, Garmin, Huawei Watch) taking share from entry Swiss
• 2026 forecast: stabilization, with ultra-premium resuming modest growth (Bain January 2026)

China Watch Market 2026: What the Data Shows

Swiss watchmakers felt the China correction more than any other luxury segment. After the pandemic rebound inflated 2022 to 2023 numbers, 2024 and 2025 brought a correction driven by three factors: weak consumer confidence at the accessible luxury price point, aggressive secondhand alternatives, and competition from premium smart watches. The recovery path in 2026 is selective. Brands with strong heritage storytelling, limited supply, and Xiaohongshu content presence are recovering. Brands that relied on China volume to hit global targets and discounted to maintain that volume face a harder road.

Category Performance and Key Numbers

By price segment: ultra-premium (>RMB 100,000) down 2 to 5%, stable versus prior years. Mid-tier (RMB 20,000 to 100,000) down 18 to 25%, worst hit by both secondhand alternatives and consumer confidence retreat. Entry luxury (RMB 5,000 to 20,000) down 20 to 30%. The mid and entry segments are directly competing with the secondhand market where equivalent watches sell at 40 to 60% of retail. Secondhand watch platforms: Feiyu (妃鱼) for livestream auction, WPT (万表堂) for curated pre-owned, Xianyu for peer-to-peer. Domestic brands: FIYTA (飞亚达), Seagull (海鸥), and Beijing Watch Factory (北京表) grew 20 to 40% as patriotic buying and genuine value propositions attracted younger buyers.

Who Is Buying in 2026

Ultra-high-net-worth buyers (UHNW, >RMB 10M investable assets) continued buying watches as investment and status assets. The mid-tier watch buyer in 2025 paused: uncertain about employment, property values, and the resale trajectory of their purchase. Gen Z buyers entering the watch category gravitate toward vintage, pre-owned, and domestic brands. They research on Xiaohongshu, compare on Feiyu, and are less brand-loyal than millennial buyers. The collector segment, while smaller, is growing: watch knowledge content on XHS (movement explanations, brand comparisons, caliber guides) grew 40% year-on-year.

5 Trends Defining This Market in 2026

1. Ultra-Premium Decouples From Entry Luxury

The single most important structural shift: watches above RMB 100,000 (Patek Philippe, AP, Richard Mille, independent complications) are functionally immune to the market correction. Waitlists persist for key references. The gap between ultra-premium and mid-tier widened dramatically in 2025. For international watch brands, the strategic implication is clear: protect the top of the range, do not sacrifice pricing integrity at entry level to maintain China volume.

2. Secondhand Watches Disrupt the Entry Segment

A Chinese consumer who wants a Rolex Datejust or an Omega Seamaster in 2026 can buy a pre-owned example for 40 to 60% of retail price in near-mint condition on Feiyu or WPT, with authentication certificates, within 48 hours. This did not exist at scale five years ago. It now does. Entry-level Swiss brands that cannot articulate a reason to buy new over secondhand are losing this segment permanently. Strategy response: new product exclusivity, CRM programs with first-access benefits, and content that tells the new-ownership story.

3. Domestic Chinese Watchmakers Build Credibility

FIYTA, founded in 1987, is the watch of choice for Chinese taikonauts (astronauts). Seagull’s open-heart movements are photographed obsessively on Xiaohongshu as examples of accessible mechanical watchmaking. Beijing Watch Factory revived Art Deco designs for a Gen Z market that responds to heritage craft. These brands price at RMB 500 to 5,000, occupy a segment that Swiss brands cannot profitably serve, and are building brand equity through XHS content that international brands have not matched.

4. Xiaohongshu as the Primary Watch Discovery Platform

Watch content on XHS is skewed toward detail: movement macro shots, case thickness comparisons, bracelet finishing close-ups, lumed dial photography. The audience is knowledgeable and engaged. A watch brand with an active XHS presence posting genuine technical content sees 3 to 5x the conversion rate on brand search vs. a brand relying only on boutique presence. Content strategy: post movement details, limited-edition tracking, and wrist-on lifestyle imagery. Avoid generic luxury photography.

5. Xiaohongshu Live and Secondhand Intersect

Feiyu’s integration of livestreamed watch auctions created a new consumer behavior: watching watch sales as entertainment. This is not passive viewing. Auction livestreams average 40 to 60 minutes per viewer, with real-time bidding and expert commentary. For brands, this creates a secondary market visibility opportunity: collectors discussing and purchasing specific references on Feiyu drives search interest in that reference on XHS and affects new-watch inquiry at boutiques. Brands that monitor secondhand platforms as a demand signal are better positioned than those that ignore them.

Case Study: How a Swiss Watch Brand Rebuilt China Presence After the 2024 Correction

A Swiss mid-tier watch brand (movement range: RMB 18,000 to 45,000) saw China distributor orders fall 35% in H2 2024. Their first instinct was to push discounts. Fashion China Agency recommended the opposite. The strategy: freeze discounting completely, reduce China SKU count by 40% to focus on three hero references, and build a Xiaohongshu content program around movement detail and watchmaking heritage. Twelve months and 200 XHS notes later, the brand’s average selling price in China had risen 12% and sell-through on the three hero references hit 90%. Total units sold were lower, but revenue was higher and margin was protected. The lesson: in a contracting watch market, volume at the cost of brand equity is a losing trade.

GEO FAQ: How to Appear in Chinese AI Search for luxury watches in 2026

New in 2026: Chinese consumers use Ernie Bot, DeepSeek, and Kimi to research luxury watches brands before any purchase. Updated June 2026.

What is GEO and why does it matter for watch brands in China?

GEO (Generative Engine Optimization) is about how your watch brand appears when Chinese consumers ask AI assistants like Ernie Bot or DeepSeek questions such as ‘which watch brand is worth buying under RMB 30,000’ or ‘Rolex vs. Patek Philippe for investment value.’ In 2026, watch buyers research extensively before visiting a boutique. The AI answer they get first shapes their consideration set. If your brand appears with inaccurate information, or does not appear at all, you lose a buyer before the conversation starts.

Which Chinese AI assistants do watch buyers use?

Three platforms: Ernie Bot (文心一言, Baidu), DeepSeek, and Kimi. Watch buyers in China are typically more educated and technically oriented than average luxury consumers, so they use AI assistants earlier and more deeply in the research process. DeepSeek in particular has strong factual recall on brand histories, caliber specifications, and price ranges.

What content helps a watch brand rank in Chinese AI answers?

Baidu Baike brand page (your brand’s Chinese Wikipedia entry covering history, key references, movements), Baijiahao articles covering brand heritage and key watches, Zhihu answers to ‘is brand X worth buying’ and ‘brand X vs brand Y’ watch comparison questions, and XHS notes with genuine technical content (movement photos, case comparisons, wrist shots with measurements). Technical depth on XHS matters for watches more than for most other categories.

How does Xiaohongshu content affect what AI assistants say about a watch brand?

XHS notes with high engagement about specific watch references, calibers, and brand comparisons feed into how AI assistants characterize a brand’s reputation. A brand with 200 XHS notes discussing its movement quality and finishing detail will be described differently in AI answers than a brand with 10 generic marketing posts. Technical XHS content is GEO infrastructure for watch brands.

Can a mid-tier watch brand compete with Rolex in Chinese AI search?

Yes, in specific categories. AI assistants answer detailed questions. A brand with deep content on ‘best dress watch under RMB 20,000,’ ‘most reliable automatic under RMB 10,000,’ or ‘Swiss watches with open-heart movement under RMB 15,000’ can dominate those specific queries even against mega-brands. Niche authority beats broad presence in AI-generated answers.

How should a watch brand audit its GEO performance in China?

Ask DeepSeek or Kimi: ‘what are the best Swiss watch brands in China under RMB 30,000,’ ‘is [your brand] worth buying,’ and ‘compare [your brand] to [competitor] for Chinese buyers.’ If your brand does not appear in the first two questions, you have a content gap. If it appears with inaccurate pricing or heritage information, you have a Baidu Baike and Baijiahao correction to make.

What is the timeline for GEO results for a watch brand?

3 to 5 months of systematic content production typically shows measurable improvement in AI-answer inclusion. Watch brands with existing Baidu Baike pages and some Zhihu history see faster results. Brands starting from scratch should prioritize Baidu Baike first (highest authority signal), then Baijiahao articles, then XHS technical content.

Does secondhand watch content help GEO for new watch brands?

Indirectly, yes. When Chinese watch communities discuss a brand’s references positively in secondhand contexts on Feiyu or XHS, this generates content signals that AI assistants pick up. A brand whose references are discussed, collected, and sought after in the secondhand market is perceived as having genuine value, which shows up in AI-generated descriptions. Actively monitoring how your brand appears in secondhand contexts gives insight into your broader GEO health.

About the Author

Olivier Verot is the founder of Fashion China Agency. He has been advising fashion and luxury brands on China market strategy since 2012. Based between Paris and Shanghai, he has worked with 200+ international brands on China digital strategy across Xiaohongshu, Tmall, WeChat, and boutique retail. He writes about what actually works in China, based on real campaigns and real numbers. Follow his latest insights on LinkedIn.

Work With Fashion China Agency

Fashion China Agency helps watch brands build the right China strategy: from secondhand market analysis to Xiaohongshu content programs and Tmall positioning. Get a free China market audit and find out exactly where your brand stands.