In January, Swiss watch exports recorded a modest increase of 3.1 percent, reaching 1.9 billion Swiss francs ($2.2 billion) in value, according to the Federation of the Swiss Watch Industry. This marks a significant slowdown compared to the 11.8 percent growth observed in the first half of the previous year. The rise in monthly exports was accompanied by a 2.9 percent increase in the number of timepieces exported, totaling 1.2 million units. Demand at the lower end of the market was boosted by shipments of the Swatch brand’s Blancpain and Omega collaborations.
Citigroup analyst Thomas Chauvet characterized the figures as indicative of “a weak start to the year.” Economic and geopolitical concerns, coupled with a post-pandemic decline in demand, have led buyers of high-end Swiss watches to curtail spending. Additionally, the robust value of the Swiss franc is putting pressure on producers who have raised prices to safeguard margins, leading some consumers to resist higher costs.
Watches priced above 3,000 francs experienced a 4.5 percent decline in exports in January, despite a 4.3 percent increase in value. Conversely, watches with a wholesale price below 200 francs saw a notable 5.5 percent surge, driven by the Swatch Group AG’s namesake brand.
In terms of export destinations, the US, the largest market for Swiss timepieces, saw a modest 2.2 percent increase in value. Mainland China experienced a 5 percent growth in exports, while shipments to Hong Kong declined by 4.7 percent.
Although watch exports reached a record 26.7 billion Swiss francs in 2023, the growth rate dwindled to 3.6 percent in the second half of the year as consumer spending contracted. The luxury watch industry, ranking as the third-largest export sector in Switzerland, employs around 60,000 people. Leading high-end watchmakers, including Rolex, Patek Philippe, and Vacheron Constantin, are gearing up to unveil new models at the upcoming Watches and Wonders fair in Geneva in April.
