Swiss watch exports in 2021 soared to unprecedented heights, surpassing the previous record set in 2014. According to the industry federation, exports reached a staggering 22.3 billion Swiss francs ($24.1 billion, 21.5 billion euros), marking a 2.7 percent increase compared to pre-pandemic levels in 2019 and a 0.2 percent increase compared to 2014. These figures indicate a remarkable recovery for the Swiss watch industry, which was severely impacted by the COVID-19 pandemic in 2020.
The resurgence in Swiss watch exports was primarily attributed to the strong recovery in the luxury sector. As the stock market thrived and the assets of affluent individuals increased, there was a corresponding surge in demand for luxury watches. Jean-Daniel Pasche, president of the watchmaking federation, highlighted the close correlation between the luxury sector and watchmaking, underscoring the industry’s reliance on luxury consumers.
During the height of the COVID-19 pandemic, store closures and the halt in tourism greatly affected the Swiss watch industry. As a result, exports plummeted by 21.8 percent in 2020, with the exception of exports to China, which remained resilient. However, in 2021, watch exports experienced a rebound, beginning with an upsurge in exports to the United States and subsequently to Gulf countries. Swiss watch exports to the United States registered a remarkable increase of 54.9 percent compared to 2020. Exports to China also saw significant growth, rising by 23.9 percent, while Singapore and the United Arab Emirates witnessed growth rates of 36.5 percent and 31.2 percent, respectively. This rise in exports to the Gulf region can be attributed in part to the region’s close ties to the oil and gas industry, as increased oil and gas prices instilled confidence in customers, particularly in the Middle East.
Despite the positive trajectory, watch exports to historically important markets like Hong Kong, Japan, Britain, and France remained below pre-pandemic levels. These markets faced ongoing challenges due to the decline in tourist numbers, hampering the recovery of their respective watch industries. Luxury watches priced above 3,000 Swiss francs fared better in terms of export growth, while watches under 500 Swiss francs continued to struggle.
Industry experts believe that the demand for exceptional and unique luxury watches will persist in 2022. The anticipated resumption of tourist flows, barring any geopolitical disruptions, is also expected to drive further growth. Analyst Jon Cox forecasts a nine percent increase in Swiss watch exports for 2022, highlighting the industry’s positive outlook.
In conclusion, Swiss watch exports reached record-breaking levels in 2021, showcasing a remarkable recovery from the setbacks of the COVID-19 pandemic. The luxury sector played a pivotal role in driving this growth, with increased exports to the United States and Gulf countries. However, important export markets faced challenges due to low tourist numbers. Despite these hurdles, the demand for exceptional luxury watches is expected to continue in 2022, further boosting Swiss watch exports.
Helpful links:
1. Reuters – Swiss watch sales return to pre-pandemic levels
2. Swissinfo – Swiss watch exports surpass 2014 record despite pandemic
