Swiss watch exports to China plunge 50 percent in September

Zurich - Swiss watch exports suffered their steepest fall this year in September, pulled down by a 50-percent plunge in sales to China, the industry's federation said Thursday.

It marks the latest sign of weakening demand in the world's second-largest economy, which has hit Europe's luxury sector.

Sales to Hong Kong also fell 34.6 percent during the month from a year earlier, according to the Federation of the Swiss Watch Industry.

Swiss watch exports are a closely watched indicator for the overall health of the luxury goods sector.

Across all markets, exports fell 12.4 percent in September to 2.1 billion Swiss francs (2.5 billion dollars or 1.9 billion pounds).

Sales also fell by 13.9 percent to Singapore and by 19.8 to South Korea. Sales to other European countries dropped 3.4 percent, while the only major markets to grow were the United States, up 2.4 percent, and Japan, up two percent.

After hitting a record high in 2023, Swiss watch exports are down 2.7 percent in the first half of this year on falling Chinese demand as the country faces a real estate crisis and rising youth unemployment.

China is a key market for Swiss watches, representing 10.3 percent of all exports in 2013.

But that figure underestimates China's importance given purchases by Chinese tourists during trips to Europe, especially before Covid pandemic lockdowns.(AFP)