Japanese watchmakers are experiencing notable growth in global exports amid a challenging environment for the broader watch industry. According to the Japan Clock & Watch Association (JCWA), the value of Japanese watch exports increased by 10 percent to ¥207.9 billion ($1.32 billion) in 2025. In contrast, Swiss watch exports declined by 1.7 percent, reaching SFr 25.6 billion ($31.2 billion) during the same period.

While the Swiss watch industry remains significantly larger in scale, the export figures highlight a shift in the market dynamics. Japanese manufacturers, traditionally known for producing reliable and affordable timepieces, are expanding into higher-priced mechanical watches and broadening their presence internationally. Smaller Japanese brands have also drawn overseas buyers attracted by their craftsmanship, distinctive designs, and relatively accessible price points.

Japan’s three largest watch companies—Seiko, Citizen, and Casio—have all reported strong sales growth in their latest quarterly results. For the three months ending June 30, Seiko Group’s watch sales rose 34 percent to ¥63 billion, with operating profit climbing 77 percent to ¥13.3 billion. Citizen Group saw a 32 percent increase in watch sales to ¥54.8 billion and a 62 percent rise in operating profit to ¥7.1 billion. Casio’s watch sales grew 29 percent to ¥51 billion.

Domestic demand for Japanese watches is also on the rise. Japan became the second-largest market for Swiss watch exports in 2025, while shipments of domestically produced mechanical watches increased 29 percent. Conversely, shipments of digital quartz watches declined by 31 percent, according to JCWA data.

Seiko’s growth strategy focuses heavily on international brand expansion and a move into the premium watch segment. Akio Naito, president of Seiko Watch Corporation, attributes the recent performance to a decade-long push to develop global brands, rather than solely favorable market conditions. Grand Seiko, Seiko’s upscale brand, embodies this approach. Though initially sold only in Japan since its inception in 1960, Grand Seiko began international exports in 2010 and became a standalone brand in 2017, a move that accelerated its global reach. In the U.S. market, Grand Seiko’s sales reportedly increased tenfold within five years of brand independence, with international sales now rivaling or exceeding domestic sales.

Seiko plans to replicate this success with Credor, another high-end brand that recently began exporting after more than five decades of domestic-only sales. The U.S. remains a key growth market for Seiko’s brands, supported by partnerships such as the extension of its ambassador relationship with Shohei Ohtani, a prominent Japanese baseball player active in the U.S. market. Other regions showing strong momentum include India, Australia, Taiwan, and South Korea.

Industry observers note a shift in consumer perception alongside this growth. Historically recognized for their practical and functional qualities, Japanese watches—especially at the Grand Seiko level—are increasingly appreciated for their craftsmanship and aesthetics.

This shift is also evident among smaller Japanese watchmakers gaining international attention. Minase, a boutique brand known for its zaratsu mirror-polishing technique and Swiss-made movements, has found new traction in Europe and the Middle East through targeted branding emphasizing its Japanese heritage. Similarly, Kurono Tokyo, led by watchmaker Hajime Asaoka, offers limited-release, artisanal timepieces appealing to collectors seeking unique designs at accessible prices.

Pricing remains a competitive advantage for Japanese watchmakers. Brands like Orient, owned by Seiko Epson, have focused on affordable mechanical watches, a strategy that has driven rapid sales growth in markets such as the United Kingdom. Orient’s head of Europe, Wiebke Bird, notes that consumer interest among younger buyers has grown alongside a broader reevaluation of Japanese watchmaking beyond its historical association with quartz technology.

Japanese brands helped pioneer quartz watches with Seiko’s 1969 Astron model, a development that led to the so-called quartz crisis of the 1970s, dramatically transforming the watch industry. Bird suggests that contemporary consumers recognize Japanese watchmakers’ renewed emphasis on mechanical watch craftsmanship, design, and engineering—a combination that offers a distinctive alternative to Swiss watches.

Overall, the rise in Japanese watch exports and international brand recognition reflects an evolving market where innovation, heritage, and price competitiveness are reshaping Japan’s role in the global watch industry.