Swiss watch exports experienced a remarkable rebound in June, thanks largely to strong demand from China and the US, although Europe and Japan still lag behind. The Swiss watchmaking federation reported that exports reached nearly 2 billion Swiss Francs ($2.1 billion) in June, representing a 12.5% increase compared to the same period in 2019. This recovery is even more significant considering the immense challenges faced by the industry during the pandemic.
During the initial wave of the pandemic, Swiss watch exports suffered a severe decline. In April 2020, there was an astonishing 81.3% plunge, followed by a 67.9% drop in May. The industry continued to face difficulties in June with a 35.1% decrease, as store closures and the absence of tourism greatly impacted the luxury sector. However, the recent surge in watch exports indicates a positive turnaround.
According to the Swiss watchmaking federation, it is more relevant to compare current export rates with those of 2019, rather than the previous year, due to the magnitude of the pandemic-induced shock in 2020, providing a better understanding of the industry’s evolution.
In the first half of 2021, exports nearly reached their 2019 levels, totaling 10.6 billion Swiss Francs. Only a marginal 0.5% increase in exports is needed for the industry to regain its pre-pandemic levels. The growth in June was mainly driven by the Chinese market, showing a staggering 93.7% increase, while the US witnessed a notable 35.4% rise. Export numbers to Hong Kong also rebounded, rising by 5.2% after months of decline due to pro-democracy protests.
However, watch exports to Japan experienced an 11% decline, and Europe’s recovery was modest with a 3.1% increase. Among Europe’s largest markets, only Italy displayed growth, with a significant 33.6% increase, attributed to the absence of tourists. Swiss watch exports to the UK dropped by 5.4%, to France by 15.3%, and to Germany by 11.1%.
Overall, the recovery of Swiss watch exports in June is an encouraging sign for the industry, signaling a significant step towards returning to pre-pandemic levels. With continued growth in key markets like China and the US, there is optimism for a full recovery in the near future.
Useful links:
1. Swiss watch exports archive
2. Monthly Swiss watch exports statistics
