Switzerland: watch exports fall by 1 percent in March

Swiss watch exports contracted by one percent in March to 2.1 billion Swiss francs, driven down by the US market, according to figures published on Tuesday by the Federation of the Swiss Watch Industry (FH).

American market in decline

In March, exports to the US, the largest market for Swiss watchmakers, fell by 1.6 percent compared to the same period last year, the FH stated in a press release.

Conversely, shipments of timepieces to China continued to strengthen, recording an increase of 4.2 percent, while exports to Hong Kong also rose by 0.5 percent.

Shadow of conflict in the Middle East

For now, “the conflict in the Middle East has not yet affected watch exports to the United Arab Emirates,” the region's main market, the FH detailed. It specified that exports to the country grew by 0.7 percent in March. In contrast, figures plummeted for Saudi Arabia, down 16.8 percent, and Qatar, down 24.8 percent.

The Middle East accounts for 10 percent of Swiss watch exports, FH president Yves Bugmann stated last week at the Geneva watch show. According to Bugmann, regional tensions pose “an additional challenge for the watchmaking industry,” compounding uncertainties over US customs duties and Chinese consumer spending. “Everything depends on the direction this conflict takes,” he stressed.

Marked disparities in Europe

Watch exports do not reflect final sales to consumers, but rather the stock levels held by retailers for their boutiques. The industry's biggest names, including Rolex, Patek Philippe, Audemars Piguet and Vacheron Constantin, just concluded a week-long exhibition at the Watches & Wonders trade show on Monday.

In Europe, trends are mixed. Exports to the UK increased by 3.2 percent in March, while they declined by 8.5 percent to Germany and 16.8 percent to Italy.

Exports to France showed a spectacular jump of 72.4 percent. The FH, however, qualified this result, stating that it “does not reflect actual market growth, but rather re-exports to other markets”.

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