Swiss watch exports recorded another increase in September, although the rate of growth was slower compared to August. The United States and China, the two largest markets for Swiss watches, played a role in hindering the growth. Data released by the watchmaking federation on Thursday revealed that Swiss watch exports reached 2.3 billion Swiss francs (2.4 billion euros) in September, indicating a 3.8% year-on-year increase. While this growth is slightly lower than the 4% rebound observed in August, it still shows positive momentum in the industry.
The watchmaking federation acknowledged that the unfavorable comparison basis was due to two years of record growth. However, it emphasized that this development signifies the expected normalization of growth. After a significant decline in 2020 due to the impact of the pandemic, Swiss watchmaking made an impressive comeback in 2021 and 2022, continuously surpassing previous records.
Exports had reached a historic high of 22.3 billion francs in 2021, primarily driven by the recovery in the United States. This record was then surpassed in 2022, with exports reaching a new peak of 24.8 billion francs as the recovery spread to Europe and tourists began purchasing luxury goods. Despite certain hesitations, exports have continued to climb throughout 2023, showing an 8.6% increase in the first nine months of the year.
However, in September, watch exports showed mixed trends across different countries. Exports to the United States fell by 6.4%, while exports to China declined by 5.5% for the third consecutive month. The decline in China is particularly significant as Swiss watchmakers had anticipated stronger growth after the end of the zero-Covid policy. On the positive side, Swiss watch exports to other Asian countries displayed a more optimistic pattern. Exports to Hong Kong increased by 24%, to Japan by 8.7%, and to Taiwan by 36.4%. However, there were declines in exports to Singapore by 2.7% and to South Korea by 15.4%.
In Europe, there was a more encouraging trend for Swiss watch exports. Exports to the UK rose by 3%, to France by 15.9%, and to Italy by 24.5%. However, there was a contraction in exports to Germany, which fell by 4.2%.
Overall, the September figures indicate that while Swiss watch exports are still growing, the rate of growth has slowed down. The performance of the United States and China, two crucial markets for the Swiss watch industry, played a role in this slowdown. However, positive signs can be seen from other Asian and European markets, suggesting that the industry may still experience steady growth in the coming months.
Useful links:
1. Switzerland Watches Export Value by Market
2. Bloomberg – Swiss Watch Exports Grow at Slower Pace in September
