The closure of shops caused by the spread of the coronavirus worldwide will cost Swiss watch firms dear, but exports are expected to rebound next year.
“The Swiss watch industry will experience the largest decline in the past 50 years,” says a study published by private bank Vontobel on Wednesday. The projections are based on the assumption that stores will be open again in May or June.
The anticipated 25% drop in exports in 2020 is even “slightly larger than that recorded in 2009 (-22%) during the financial crisis”, said analyst René Weber.
Watch exports are expected to fall by more than 30% in March, following a 9.2% decline in February during which China, the origin of the pandemic, saw a decline of 50% compared with the previous year. For the second quarter of 2020, a 40% drop in the sector’s exports is expected.
Production is also an issue. Watch manufacturers such as Rolex, Audemars Piguet, Patek Philippe, Hublot and Tag Heuer have temporarily closed their production sites. Others like Swatch have resorted to reduced working hours.
Rebound expected
With a possible resumption of activities in May or June, the second half of the year should show an improvement, according to the report.
Currently, stores have started to reopen in China even though the number of customers remains modest. Businesses began closing at the end of January, while in Europe and the US it was in mid-March.
According to the report, the watch industry should bounce back to post an increase of around 15% in 2021, as in 2010 (+22%).
The industry was enjoying good business until the coronavirus restrictions hit it. In 2019, the Swiss watch industry recorded an increase of 2.4% or CHF21.7 billion ($22.5 billion) in its exports.
More
More
Foreign demand remains high for luxury Swiss-made watches
This content was published on
Swiss watch manufacturers exported timepieces worth over CHF21 billion ($21.7 billion) last year – the industry’s third-best result ever.
Beer sales in Switzerland watered down by bad weather
This content was published on
The past brewing year fell through in Switzerland, partly due to the bad weather. Beer sales shrank again. For the first time, per capita consumption fell below the 50 liter mark.
Compensation for Syrian after pregnant wife denied help on Swiss train
This content was published on
Switzerland’s Federal Court has partially upheld the appeal of a Syrian family being deported from Switzerland to Italy in 2014. The man now also receives compensation.
Swiss-EU negotiations: Cassis to meet Sefcovic in Bern
This content was published on
Swiss Foreign Minister Ignazio Cassis will meet the Vice-President of the EU Commission, Maros Sefcovic, in Bern on Wednesday.
Heavy snowfall in Switzerland causes traffic chaos and accidents
This content was published on
The heavy snowfall late on Thursday and during the night into Friday led to traffic chaos and many accidents in many regions of Switzerland.
Chimpanzee behaviours passed down through generations
This content was published on
Some of the complex behaviours of chimpanzees have been passed down and refined over generations. These include the combination of several tools for foraging.
More than 600,000 rounds of Swiss sniper ammunition reach Ukraine
This content was published on
Sniper ammunition from Swiss P Defence reached Ukraine via a Polish company in July 2023, reported SRF Investigativ on Thursday, citing official information.
Switzerland launches national digital inclusion alliance
This content was published on
The Swiss government launched the Swiss Digital Inclusion Alliance on Thursday with the goal of giving as many people as possible access to digital services.
If you want to start a conversation about a topic raised in this article or want to report factual errors, email us at english@swissinfo.ch.
Read more
More
Luxury watches at your fingertips
This content was published on
In an industry where luxury boutiques equate with high-end customer service, the internet was almost a dirty word among Swiss watchmakers.
The $31 million watch and other Swiss price world records
This content was published on
Whatever your view on CHF640 bars of chocolate, Switzerland holds several world records when it comes to expensive goods.
Hunting for the cheapest mechanical watch in Baselworld
This content was published on
The world’s biggest watch fair is where new luxury watches are launched. swissinfo.ch went looking for low-budget alternatives.
You can find an overview of ongoing debates with our journalists here . Please join us!
If you want to start a conversation about a topic raised in this article or want to report factual errors, email us at english@swissinfo.ch.