China Drives Swiss Watch Rebound

RAPAPORT… Swiss watch exports rose in July driven by a rebound in growth in China and the Asia-Pacific market.



“Swiss watch exports returned rapidly to growth following
the downturn in June,” the Federation of the Swiss Watch Industry reported
Tuesday. “Hong Kong remained in the red, but performed significantly better
than it had in June.”


Shipments rose 4.3% year on year to CHF 1.9 billion ($1.93
billion), in contrast to a drop of 11% in June. Supply to China climbed 16% to
CHF 151.6 million ($154.7 million). That increase outweighed a 1.3% decline to
CHF 256.5 million ($261.8 million) in exports to Hong Kong — the Swiss watch
industry’s largest market — where demonstrations have caused a slowdown in the
tourist market. Supply to the US grew 6% to CHF 191.8 million ($195.7 million),
while exports to Japan and Singapore rose 23%  and 18% respectively.


Watches priced above CHF 3,000 (3,062) were the only price
category that saw growth, with orders rising 9% by value. Shipments of
timepieces between CHF 500 ($510) and CHF 3,000 slipped 1.3%, while those
valued from CHF 200 ($204) to CHF 500 fell 0.4%. Supply of products priced
under CHF 200 plummeted 20%.


Exports of watches made of precious metals jumped 12% to CHF
635.8 million ($649 million). However, overall volumes slid for the 12th
consecutive month, the sharpest fall since July 2016, the federation
noted. Shipments of timepieces made of
steel inched up 0.6% to CHF 714.7 million ($729.5 million), while those made of
gold and steel grew 1.1% to CHF 298.2 million ($304.4 million). Supply of
watches made from other metals edged up 0.6% to CHF 90.4 million ($92.3
million).


Image: A display of Swiss watches. (Shutterstock)