Swiss Watch Exports Continued to Decline in June

The United States showed a sharp decline in exports, with a 17.6% drop in the value of Swiss watches. This slowdown, which was less severe than in May (-25%), reflects the difficulties of the US market following the exceptional peak in Swiss watch exports in April, which rose by 149.2% to 852 million Swiss francs in anticipation of the 30% US customs duties, if confirmed. In June, exports to the US amounted to CHF 310 million. Some brands have increased their prices, driving certain buyers away from the new market towards the secondary market, which is less expensive.

Overall, over six months, the trend remains close to equilibrium (-0.1%) at nearly 13 billion Swiss francs, ‘a level that could, however, fall more sharply if this trend continues,’ according to the watchmaking federation's press release.

Watches made of precious metals and steel, which alone account for nearly 75% of the value exported, recorded a 4.4% drop. In terms of volume, watches classified as ‘other materials’ (sapphire, ceramic, etc.) saw the sharpest decline, down 29%. Precious metal watches fell by 9.8% in volume. Exports of steel watches rose slightly by 2.4% to 703,000 pieces. A total of 1.16 million wristwatches were exported.

It is interesting to note that watches priced between 500 and 3,000 Swiss francs performed best, with an increase in exports in terms of both volume (+12.4%) and value (+16%).

The respite from these declines came from the Chinese market, which recorded a 6.1% increase in exports in terms of value. ‘However, this market represented only a fraction of its pre-property crisis level, with exports down by almost 30% on two years earlier,’ the press release states.

Elsewhere in Asia, Japan posted a decline of 11% and Hong Kong 10.6%.