Swiss Watch Exports Rise Even as Buyers Remain Cautious

Swiss watch exports continued to grow in August amid increased demand in the US and Japan, but overall, buyers are being more careful about spending due to global economic challenges. 

Shipments of timepieces advanced 7% to CHF 1.95 billion ($2.31 billion) for the month, the Federation of the Swiss Watch Industry reported Thursday. The rise was much higher than July’s 1.6% increase, which was the first in several months. However, the federation does not believe the growth indicates a continuing recovery in demand. 

“The slight rebound in Swiss watch exports seen in July was confirmed in August,” the federation noted. “Despite the increase,…the trend is still negative, as is the outlook for the rest of the year. Firms in the sector are lamenting the lack of visibility in the medium term, which is prompting them to be more cautious going forward or even, in some cases, cutting back. 

Supply to the US climbed 8% to CHF 320 million ($378.2 million). China regained the second spot after a two-month flip with Japan, despite a 6% drop in exports to CHF 179.1 million ($211.7 million). In Japan, shipments jumped 14% to CHF 143.2 million ($169 million). Exports were up 3.5% to CHF 141.8 million ($167.7 million) in the UK, which surpassed Hong Kong for the first time. In the municipality, orders fell 11% to CHF 132.4 million ($156.5 million). 

Although shipments in China and Hong Kong were stronger in August than in past months, the federation does not see the markets rebounding in the short term. 

“Watch exports to China and Hong Kong continued to fall, but less significantly than in previous months,” the federation added. “Nonetheless, the forecasts for both these markets remain very negative for the next few months.” 

Timepieces over CHF 3,000 ($3,548) were the only category that saw an uptick, rising 15%. Items that cost between CHF 500 ($591) and CHF 3,000 slid 16%, while those with a value between CHF 200 ($237) and CHF 500 slipped 13%. Watches priced under CHF 200 fell 8%. 

In the first eight months of the year, exports declined 1.4% to CHF 17.12 billion ($20.24 billion). 

Image: A display of Swiss watches. (Shutterstock)