Swiss Watch Exports Clock Highest Annual Result

RAPAPORT… Shipments of Swiss watches reached their highest ever full-year total amid continued growth in the US and China.

Global shipments increased 2.7% in 2021 versus two years earlier to CHF 22.3 billion ($24.24 billion) and were up 0.2% over the previous record, which was set in 2014, the Federation of the Swiss Watch Industry said Thursday. Annual exports jumped 31% from 2020.

“The return to pre-crisis levels during September, and positive performance in the fourth quarter, produced the best-ever annual results for the sector,” the federation noted.

In December, global shipments climbed 9% compared to the same month in 2019, reaching CHF 1.91 billion ($2.08 billion), and increased 11% year on year.

Supply to the US surged 44% from December 2019 to CHF 276.6 million ($300.6 million), with the country maintaining its place as the leading market for Swiss watches in every month of 2021, the federation explained. China saw a 9% increase to CHF 230.5 million ($250.5 million). Exports to the UK jumped 14%, while those to the UAE rose 8%, and orders to Singapore were up 7%.

That growth outweighed a 16% downturn in Hong Kong, which “fell significantly for the third year running,” the federation noted. Japan, Germany, France, Italy and South Korea also recorded dips. The decreases indicate “a level of ongoing instability in the market across Asia, Europe and America, with growth driven by just a small number of countries,” the federation added.

Exports of timepieces valued at more than CHF 3,000 ($3,261) rose 15% in relation to December 2019, while those in the CHF 500 ($543) to CHF 3,000 range grew 6%. Orders of watches that cost CHF 200 ($217) to CHF 500, and those priced under CHF 200, dropped 26%.

Image: A Swiss watch display. (Shutterstock)