Swiss watch exports rose slightly last month thanks to Japan and the USA
The Americans’ love of watches is once again benefiting the entire Swiss watch industry.
Exports of Swiss watches rose a modest 1.6 percent in July compared with the same period last year, Bloomberg reported on Tuesday, according to the latest data from the Federation of the Swiss Watch Industry, which also showed that the number of watches exported remained stable at around 1.4 million watches.
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The United States is currently the largest market for Swiss watches, with imports increasing by 11 percent. Japan, on the other hand, saw its Swiss watch market grow by an impressive 26 percent, overtaking China as the second-largest market for such watches. In China and Hong Kong, both once strongholds of the industry, exports fell by 33 percent and 19 percent respectively.
The US overtook China to become the largest market for the first time in 2021, Bloomberg noted, and has maintained that status over the years. Interest in Japan has surged thanks in part to the current weakness of the yen, while China has been negatively affected by falling real estate values.
Overall, Swiss watch exports fell 2.4 percent in the first seven months of the year. This compares to a record year in 2023 for the industry, when Swiss watch exports reached an all-time high of $31 billion. Currently, the total is worth about $17.8 billion. And last month, watches exported at wholesale prices of less than $234 saw a 14 percent increase, while watches costing more than $3,500 rose a less impressive 5.4 percent.
The cuts in China are hitting Swiss watchmakers particularly hard: Richemont – which owns Vacheron Constantin and Jaeger-LeCoultre, among others – saw watch sales fall 13 percent in July. And the Swatch Group – which owns Omega, Breguet and others – saw China sales fall 30 percent in the first half of the year. Overall, though, Swatch Group watches appear to be doing well: Last month, Omega exports rose 7 percent, while overall watch exports rose 27 percent, a company spokesperson told Bloomberg.
Even if the industry cannot match its record figures from last year, the recent gains are a good sign for the Swiss watch industry – especially after a difficult March when exports recorded the biggest monthly decline in four years. The current upward trend should make Swiss watchmakers quite happy.
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