Swiss watch exports gain as US, Japan offset China drop
Watches made by Swiss luxury brand Raymond Weil.
Keystone / Gaetan Bally
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Listening: Swiss watch exports gain as US, Japan offset China drop
Swiss watch exports eked out a slight gain in July as strong shipments to the US and Japan outweighed further declines in demand for premium and luxury timepieces in China and Hong Kong.
Shipments rose 1.6% by value to CHF2.2 billion ($2.6 billion) in July from a year earlier as the number of watches exported during the month remained constant at about 1.4 million units, the Federation of the Swiss Watch Industry said Tuesday.
The increases were driven by an 11% jump in exports to the US, the biggest market, and a 26% surge to Japan, which overtook China as the second-biggest market for Swiss timepieces.
The gains were countered by continued export declines to China and Hong, which fell 33% and 19% respectively, as a downturn in real estate values continues to roil consumer sentiment.
The latest numbers show the surprising resilience of the US market, which overtook China as the top destination for Swiss watches in 2021, as well as Japan’s ongoing strength as a watch-shopping hub in Asia due to its weak currency.
The figures also underscore the depth and persistence of a China-led slowdown that’s tearing through the industry and hurting the top Swiss watch brands.
In July, Richemont reported a 27% decline in Greater China sales in the three months through June, dragging down overall sales of its watch brands, which include Vacheron Constantin, Jaeger-LeCoultre and IWC, by 13%.
Swatch Group AG, which owns Omega, Blancpain and Breguet, also said that month that China sales plunged 30% in the first half of the year.
Demand for pricey timepieces has waned after a spike when Covid lockdowns ended. Premium watch buyers have reined in spending amid higher interest rates, shaky economic growth and geopolitical conflicts.
Watchmakers are also suffering from continued strength of the Swiss franc that’s spurred price increases in some markets and deterred customers. Following another record in 2023, Swiss watch exports are down 2.4% in the first seven months of the year to CHF15.2 billion.
Watches exported at wholesale prices above CHF3,000 rose by 5.4% by value in July while watches below CHF200, which include Swatch Group’s popular Omega MoonSwatch collaboration, surged almost 14%, underscoring the challenges for mid-priced Swiss watches.
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