Swiss Watch Exports Drop in November as Demand Slump Widens

(Bloomberg) — Swiss watch exports fell for a third straight month in November as shipments to China plunged, putting the industry on track for its first negative performance since the pandemic-disrupted year of 2020.

Exports of Swiss timepieces and watch movements declined 3.8% overall to about 2.4 billion Swiss francs ($2.6 billion) in value, led by a 27% drop to mainland China, the Federation of the Swiss Watch Industry said Thursday.

The figures highlight the more difficult conditions for Swiss-based watchmakers controlled by Richemont, Swatch Group AG and LVMH, as well as independents including Audemars Piguet, Patek Philippe and Rolex SA. Consumers around the globe are cutting back on pricey timepieces after a post-pandemic boom.

Shipments from Switzerland’s third-biggest exporting industry slid 2.7% in the first 11 months of the year. Watchmakers, as well as parts and components makers, have tapped government employment programs to put workers on furlough while preserving full-time jobs. 

Exports to the US, the largest market, showed a 4.7% monthly gain from a year earlier — the only major location to show growth. Exports to Hong Kong dropped 19%, while shipments to the UK fell more than 8%. Even Japan, which has shown strength because of the weak yen, saw exports decline in November.

The weakness encompassed all price categories. Watches with wholesale prices below 200 francs dropped nearly 5% by value, while those priced between 500 francs and 3,000 francs fell 15%. Even timepieces above 3,000 francs at wholesale, which had shown resilience, fell last month, about 1% by value and 3% by volume. 

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