In September, Swiss watch exports continued their positive trajectory, although the rate of expansion decelerated, primarily due to challenges in the United States and China, two of the industry’s most critical markets.
Swiss watch exports in September reached 2.3 billion Swiss francs (approximately 2.4 billion euros), reflecting a year-on-year increase of 3.8%. This growth rate was slightly below the 4% rebound observed in August, according to data released by the watchmaking federation.
The watchmaking federation noted that the basis for comparison was less favorable due to two years of record growth. Nonetheless, the federation asserted that this development aligns with the expected normalization of growth in the industry.
Following a significant setback in 2020 due to the pandemic, Swiss watchmaking staged a remarkable recovery in 2021 and 2022, consistently breaking records. Exports reached an all-time high of 22.3 billion Swiss francs in 2021, primarily driven by the recovery in the United States. In 2022, the industry set a new record of 24.8 billion francs as the recovery extended to Europe with returning tourists purchasing luxury goods.
Despite a more moderate growth trend, Swiss watch exports have continued to climb in 2023, registering an 8.6% increase during the first nine months of the year.
In September, the performance of Swiss watch exports varied across different countries. Notably, they declined by 6.4% in the United States and by 5.5% in China, where they have been on a downward trend for three consecutive months. This is occurring as growth in China is not as robust as Swiss watchmakers had anticipated, especially since the end of the country’s zero-Covid policy.
In other Asian countries, Swiss watch exports displayed mixed results, with notable increases of 24% in Hong Kong, 8.7% in Japan, and a significant 36.4% rise in Taiwan. However, they decreased by 2.7% in Singapore and by 15.4% in South Korea.
In Europe, Swiss watch exports increased by 3% in the UK, 15.9% in France, and 24.5% in Italy, but declined by 4.2% in Germany.