Economic Tell: Swiss Watch Exports + 6.3% in Y 2018

Economic Tell: Swiss Watch Exports + 6.3% in Y 2018

FLASH: Asia accounted for over 50% of that turnover

According to The Federation of the Swiss Watch Industry FH, Swiss watch exports in Y 2018 grew 6.3% Y-Y to CHF 21.2-B.

Although the value of exports was up, the total number of watches exported declined by 2.3% to 23.7-M items there were 570,000 fewer timepieces exported in Y 2018 as compared to Y 2017.

The decrease in the number of watches exported was mainly in the sub-CHF500 category of quartz timepieces, winders are in demand.

On the other hand, not only did the number of mechanical watches exported rise by 3.9%, but also the average value of those mechanical increased by 6.6%.

Of the total Swiss watch exports Asia accounted for 53% of the overall turnover, a 12.2% increase from the prior year. During the same frame, the Europe market shrunk 2.9%, but accounted for a 31% share of all Swiss watch exports.

Among the Asian markets, Hong Kong was up 19.1% while China came in at 2nd position with an 11.7% growth and Japan 3rd with a healthy 9.1% increase.

The 6.3% increase in overall Swiss watch exports last year is in sharp contrast to Y 2016 when exports fell 9.9% compared to the prior year.

The Swiss watch industry needs to be cautious though. While the exports in the 1-H of Y 2018 rose by 10.6%, they rose just 2.3% in 2-H of the year.

The mood at the recently concluded Salon International de la Haute Horlogerie (SIHH) dominated by Richemont brands like Cartier, A. Lange & Söhne and Vacheron Constantin, among others, was upbeat.

Richemont ended Q-3 of its FY 2018-19 ending on 31 December with a turnover of EUR3.92-B, +25% Y-Y.

By Varun Godinho

Paul Ebeling, Editor

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Paul Ebeling

Paul A. Ebeling, polymath, excels in diverse fields of knowledge. Pattern Recognition Analyst in Equities, Commodities and Foreign Exchange and author of “The Red Roadmaster’s Technical Report” on the US Major Market Indices™, a highly regarded, weekly financial market letter, he is also a philosopher, issuing insights on a wide range of subjects to a following of over 250,000 cohorts. An international audience of opinion makers, business leaders, and global organizations recognizes Ebeling as an expert.

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