Swiss Watch Exports Fall Again Amid Plummeting Demand in China

This content was published on November 19, 2024 - 08:55

2 minutes

(Bloomberg) — Swiss watch exports fell for a second straight month in October as a sharp drop in shipments to China offset growth in the US.

Exports of Swiss timepieces and watch movements declined 2.8% overall to about 2.3 billion Swiss francs ($2.6 billion) in value, with China’s imports down 39%, the Federation of the Swiss Watch Industry said in a statement Tuesday.

The figures underscore the tough environment for watchmakers from Rolex to Audemars Piguet and Swatch, as consumers in mainland China and Hong Kong cut back on pricey timepieces after a post-pandemic boom.

The China and Hong Kong downturn is being countered by solid growth in exports to the US and Japan, the two biggest importers of Swiss watches.

Shipments to the US rose 11% and Japan climbed by 20% as the country’s retailers continued to benefit from a weak yen.

Overall exports have fallen by 2.6% in the first ten months of the year compared with the same period a year ago.

Expensive watches with wholesale prices above 3,000 francs were the only category to show strength, rising 1.7% by value even as the number of units fell 4%.

Pricey watches have shown some resilience while exports of more affordable models decline. Shipments of watches wholesale-priced between 500 francs and 3,000 francs skidded 21% by value in October, the Federation said.

Swiss watch exports are on track to post an overall decline in 2024 for the first time since the pandemic disrupted yearly sales in 2020. The industry saw a boom for the next three years, with exports surging to successive records.

Switzerland’s watchmakers have responded by scaling back production, with some firms tapping a government program to put workers on furlough and avoid permanent job cuts.