SWITZERLAND. According to Federation of the Swiss Watch Industry (FH) figures, the luxury watch market remained subdued in January.
The value of Swiss watch exports fell to CHF656 million (US$522 million) in January, down -5.8% from January 2003, the Federation said.
Switzerland is home to Swatch, the world’s biggest watch group, luxury goods group Richemont, as well as the private Rolex watch making group.
Exports to Japan fell -29.9% to CHF51.1 million in January, while exports to the US also declined, by -4.6%, to CHF107.3 million. There was also a fall in other major markets such as Hong Kong (-10.8%), Italy (-7.6%) and France (-14.6%) although exports to the UK rose (+28.0%). China assumed tenth place in the ranking of the largest markets for Swiss watches with growth of +36.4% over a two-year period.
Sales of gold models were down -4.4% by value, compared to platinum -18.3%, silver -66.5% and bi-metal -19.9%.
The Federation said the year-on-year decline was in-line with that seen in previous months as consumers cut back on luxury goods spending amid an uncertain economic environment. In 2003 overall, the market decline was -4.4% or CHF462.9 million less than in 2002.
“The situation has therefore not worsened since the end of last year for Swiss watchmakers,” the FH said.
While the Swiss watch industry is present all over the world (it exports nearly 95% of its production) and is a good indicator of global trends, it does not carry equal weight everywhere. Asia and Oceania take 36.0 % of Swiss watch exports in value, Europe 36.4 %, North America 16.2 %, the Middle East 6.4 %, South America 4.1 % and Africa 0.9%. The top fifteen countries represent over 82% of these exports.
