Business of Fashion and McKinsey have collaborated on five annual State of Fashion reports analyzing the global fashion industry and the trends shaping it. This report is part of a special-edition series and takes a deep dive into fine jewellery and watches over a five-year time horizon. Through extensive executive interviews, analysis of public and private companies, and proprietary insights, the report identifies six seismic shifts that will shape value pools in the fine jewellery and premium to ultra-luxury watches industries through 2025. With combined annual sales of more than $330 billion, fine jewellery and premium to ultra-luxury watches are an important part of the global luxury economy. As uncertainty caused by the COVID-19 pandemic rippled across the globe and short-circuited demand, the fine jewellery and watches industries suffered revenue declines of 10 to 15 percent and 25 to 30 percent, respectively, putting further strain on slow-to-adapt players and crystalizing emerging trends in the market. According to McKinsey & Company the Jewellery and Watches industries could grow globally at 3-4 % per year for fine Jewellery and 1-3% per year for watches between now and 2025.