Swiss Watch Exports Fall for First Time in over Two Years

Swiss watch exports declined for the first time in more than two years in February amid weak demand from Hong Kong and China.

Shipments of timepieces slipped 3.8% to CHF 2.15 billion ($2.43 billion) for the month, the Federation of the Swiss Watch Industry reported Tuesday. The decrease followed a slowdown in January, with orders up only 3.1% overall and down 4.7% in Hong Kong. In December, exports rose 5.5% in total, and 15% in the municipality.

The drop is primarily due to a strong base comparison with February 2023, following the reopening of the border between China and Hong Kong. At that time, the municipality experienced a resurgence in visitors from the mainland, who came to purchase luxury goods.

“Swiss watch exports saw their first significant decline in February, after more than two years of steady growth,” the federation noted. “[Some of] the main markets remained on a positive course in February. However, their growth was not enough to offset the sharp declines seen in mainland China and Hong Kong.”

Supply to the US rose 5.5% to CHF 364.8 million ($410.8 million). In China, the federation’s second-largest market, shipments were down 25% to CHF 189.5 million ($213.4 million), and in Hong Kong they dropped 19% to CHF 172.8 million ($194.6 million). In Japan, exports saw a 6% uptick, and gained 3.3% in Singapore and 9% in the United Arab Emirates (UAE). However, most markets in Europe recorded an average decrease of 3.5%.

Timepieces at each price point noted declines. Watches that cost less than CHF 200 ($225) slipped 0.4%, while those priced between CHF 200 and CHF 500 ($563) slid 4%. Watches valued at CHF 500 to CHF 3,000 ($3,377) plunged 14% and those worth over CHF 3,000 were down 1.8%, the federation noted.

In the first two months of the year, exports fell 0.7% to CHF 4.07 billion ($4.58 billion).

Main image: IWC Schaffhausen watches at a store window in Geneva, Switzerland. (Shutterstock)