Brexit Stockpiling Boosts Swiss Watch Growth

RAPAPORT… Swiss watch exports rose in February, as stockpiling in the
UK prior to Brexit accounted for 80% of the industry’s worldwide growth.



Shipments rose 3.4% to CHF 1.8 billion ($1.8 billion) for
the month overall, following a two-month downturn. Supply to the UK surged 58%
to CHF 126.5 million ($126.5 million), while those to China bounced back,
rising 15% to CHF 151.1 million ($151.1 million). Exports to Hong Kong fell
3.8% to CHF 245.6 million ($245.6 million), and orders to the US dropped 7% to
CHF 174.4 million ($174.4 million).


“Export growth in the watch industry gained momentum in
February, despite a base effect that remained very unfavorable,” the Federation
of the Swiss Watch Industry reported Tuesday. The UK boasted “extraordinary
growth,” it noted.


Top-priced watches continued to show strong growth, the
federation said, noting it was a trend that has continued nearly uninterrupted
for the past two years. Shipments of watches priced above CHF 3,000 ($3,000)
rose 8% by value, while exports of those worth CHF 500 ($500) to CHF 3,000 fell
5%. Supply of products priced between CHF 200 ($200) to CHF 500 remained flat,
while watches valued under CHF 200 plummeted 15%.


Bi-metal and precious metal watches, especially those made
of platinum, helped boost results, the federation noted. Exports of watches
made from gold and steel jumped 12% to CHF 311.2 million ($311.2 million).
Supply of timepieces made of precious metal grew 4.3% to CHF 564.7 million
($564.7 million), while shipments of steel watches inched up 0.5% to CHF 656.6
million ($656.6 million).


Image: Swiss watches in a London store window. (Shutterstock)