Hong Kong Revival Keeps Swiss Watch Exports Afloat

Swiss watch exports continued to advance in October, albeit at a slower rate than in previous months, as Hong Kong’s tourism recovery outweighed more moderate growth in the US and Europe.

Shipments of timepieces rose 5.4% year on year to CHF 2.39 billion ($2.7 billion) for the month, the Federation of the Swiss Watch Industry reported Tuesday. The increase followed two months of strong improvement.

“The growth in Swiss watch exports…remained close to that seen in August and September,” the federation noted. The gain shows a “stabilization in the rate of growth to a significant, but less steady pace than in the first half of the year.”

Supply to Hong Kong climbed 17% to CHF 192.1 million ($217.3 million), as luxury in the municipality benefited from the continued resurgence of visitors following the reopening of borders. Exports to China rose 24% to CHF 273.5 million ($309.4 million) due to a favorable comparison with the same period a year ago, when much of the country was closed due to Covid-19. Orders to the US were up 5% to CHF 378.4 million ($428.2 million), while they grew 1.9% in Europe.

Watches that cost under CHF 200 ($226) saw the highest increase, up 17%, while items between CHF 200 and CHF 500 ($566) gained 11%. Timepieces ranging from CHF 500 to CHF 3,000 ($3,394) dipped 1%, and those over CHF 3,000 rose 6%.

During the first 10 months of the year, Swiss watch exports advanced 8% to CHF 22.09 billion ($24.99 billion).