Swiss Watch Exports Rebound Despite China, Hong Kong Weakness

Swiss watch exports gained traction in July as increased demand in the US and Japan outweighed a continued slowdown in Hong Kong and China. 

Shipments of timepieces rose 1.6% to CHF 2.24 billion ($2.61 billion) for the month, the Federation of the Swiss Watch Industry reported Tuesday. The lift followed a 7% decline in June and a decrease of 2.2% in May as appetite in Asia remained weak. 

“Swiss watch exports returned to slight growth in July,” the federation noted. “Several leading markets recorded steady growth, including the US, Japan, France, South Korea, Taiwan and Saudi Arabia. China and Hong Kong saw very sharp declines for the sixth month running.” 

Supply to the US climbed 11% to CHF 382.2 million ($444.8 million). Japan took the number-two spot for the second month in a row, with exports rising 26% to CHF 187.1 million ($217.7 million). In China, which was traditionally the second-largest market for Swiss watches, shipments fell 33% to CHF 175.8 million ($204.6 million), and in Hong Kong they slid 19% to CHF 147.3 million ($171.4 million). France saw a rise of 14%, as did South Korea, while shipments were up 25% in both Taiwan and Saudi Arabia. 

Timepieces under CHF 200 ($233) performed the best, jumping 14%. Items valued above CHF 3,000 ($3,491) also saw “significant growth,” improving 5%. Those increases helped offset major declines in watches priced between CHF 200 and CHF 500 ($582), down 23%, and those that cost CHF 500 to CHF 3,000, which fell 13%. 

In the first seven months of the year, exports declined 2.4% to CHF 15.16 billion ($17.64 billion).

Image: A Swiss-watch display. (Shutterstock)