SWITZERLAND. Swiss watch exports fell by -16.1% year-on-year in March to CHF2.02 billion (US$2.2 billion). The weak performance was driven by Mainland China and Hong Kong, both key travel retail markets, where exports plummeted -41.5% and -44.2%, respectively. First-quarter exports fell -6.3% year-on-year.
The Federation of the Swiss Watch Industry (FH) statistics show that Mainland China exports fell below the level in March 2020, when the sector practically came to a halt due to the pandemic.
Declines were seen in all price segments. Export sales of watches priced at over CHF3,000/US$3,280 (export price) fell by -9.9%. The decline was twice as marked (-18.8%) for products priced at less than CHF500/US$546 and twice as high again for the CHF500-3,000 category (-38.2%).The March decline marks the second consecutive monthly fall.
In February, Swiss watch exports saw their first significant monthly decline (-3.8%) after more than two years of steady growth. They suffered from an unfavourable base effect and a more pronounced fall in Greater China, FH noted.
The China decline, especially if sustained, has serious repercussions for the Swiss watch industry and the travel retail channel. Citing a recent Morgan Stanley/Luxe Consult global watches report, Jing Daily, with whom The Moodie Davitt Report has a content-sharing partnership, said Mainland China accounted for nearly 30% of Swiss watch sales in 2023. ✈️
