Continued Weakness in Asia Hits Swiss Watch Exports

Swiss watch shipments declined in June as demand softened in China and Hong Kong, two of the segment’s largest export markets.  

Supply of timepieces slid 7% to CHF 2.27 billion ($2.56 billion) for the month, the Federation of the Swiss Watch Industry reported last week. The drop follows a 2.2% decrease in May, which was also the result of weakened consumer sentiment in Asia.  

In total, five of the months from January to June have seen declines, with only April recording a rise. 

“June was not a positive month for Swiss watch exports, impacted by…a more significant decline in Asian markets,” the federation noted. “Hong Kong and China continued to underperform, clearly lowering the average.” 

Shipments to the US grew 7% to CHF 376.2 million ($423.1 million). In China, supply plunged 37% to CHF 162.8 million ($183.1 million), and in Hong Kong, it fell 23% to CHF 165.9 million ($186.6 million). However, Japan, which saw a rise of 13% to CHF 174.8 million ($196.6 million) overtook both China and Hong Kong for the first time to nab second place.  

Timepieces over CHF 3,000 ($3,373) were down 0.5%, while those priced between CHF 3,000 to CHF 500 ($562) dropped 31%. Watches valued between CHF 200 ($225) and CHF 500 fell 23%, and units under CHF 200 slipped 6%. 

In the first half of the year, exports declined 3.3% to CHF 12.89 billion ($14.49 billion). 

A Swiss-watch display. (Shutterstock)