Tuesday, June 28, 2016

Business Time: Swiss Watch Exports Continued To Fall In May

The Federation of the Swiss Watch Industry (FH) published the latest watch export figures, confirming the downward trend that has marked the industry in 2016. Exports of Swiss watches fell 9.7 percent to 1.55 billion Swiss francs compared with 2015, according to data released by the Federal Customs Administration last week, with negative results across every one of its top five markets.

Exports to Hong Kong were negative for the sixth consecutive month (shooting down by 16.8 percent in May, to CHF 189.6), while the U.S. dropped by 2.1 percent to CHF 172.1 million. The last pocket of growth for the industry at the start of the year, Europe is also showing signs of a hangover with bad results in Italy (-20.9%), France (-18.4%) and Germany (-15%), while the UK posted less dramatic but still negative numbers (-2.5%) ahead of an uncertain future out of the European Union. The UAE is the only market in the top 10 (at tenth) to post any kind of growth, with an increase of 5.8 percent to CHF 78 million.

This month’s results were especially poor for watches in precious metals, which fell by 23.1 percent to CHF 491.3 million. They represent about a third of the total in value of exports. In contrast, exports of stainless steel watches fell by "only" 4.3% to CHF 572.3 million.

Exports fell in all price segments, though watches with an export price between CHF 200 and 500 francs – those competing directly with the rise of smartwatches in other words – were hit the hardest, slumping by 16.8 percent in value terms and 17.8 percent in unit terms.

The luxury segment (CHF 3,000+) also fell quite significantly with a 14.6 percent drop in value term, similar to April's numbers, despite following a strong first quarter of the year.

For industry statistics, visit the Federation of the Swiss Watch Industry FH.

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