Swiss Watch Exports Struggle as Luxury Slowdown Persists

Swiss watch exports rose modestly in January as progress slowed and weak demand for luxurious and mid-priced watches dragged on the sector.

Month-to-month exports elevated 3.1 % to 1.9 billion Swiss francs ($2.2 billion) by worth, the Federation of the Swiss Watch Business stated Tuesday. Development was as excessive as 11.8 % within the first half of final 12 months. The variety of timepieces exported rose 2.9 % to 1.2 million as shipments of the Swatch model’s Blancpain and Omega collaborations drove demand on the low finish.

Citigroup analyst Thomas Chauvet stated the numbers confirmed “a weak begin to the 12 months.”

Consumers of expensive Swiss watches are reining in spending amid financial and geopolitical issues after a pandemic period increase in demand. The robust worth of the Swiss franc can be placing stress on producers which have raised costs to guard margins.

Some customers at the moment are balking at increased costs.

The variety of exported watches priced above 3,000 francs fell 4.5 % in January, at the same time as their worth rose 4.3 %, the Federation stated in an announcement. On the identical time, the variety of watches exported with a wholesale value of lower than 200 francs surged 5.5 % pushed by the Swatch Group AG’s namesake model.

Exports to the US, the most important marketplace for Swiss timepieces, rose by a modest 2.2 % by worth. Mainland China exports gained 5 % whereas shipments to Hong Kong fell 4.7 %.

Exports of watches hit a document 26.7 billion Swiss francs by worth in 2023, however the charge of gross sales progress slumped to only 3.6 % within the second half of the 12 months as customers pulled again.

The luxurious watch business is the third largest export sector in Switzerland and employs about 60,000 individuals. Excessive-end watchmakers from Rolex to Patek Philippe to Vacheron Constantin are set to unveil new fashions on the annual Watches and Wonders honest in Geneva in April.

By Andy Hoffman

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Swiss Watch Exports Slowing After a Record Run

Swiss watch exports hit document ranges final 12 months as watchmakers raised costs and shipments of cheaper quartz watches jumped, although the tempo of progress tapered off within the second half.