Swiss watch exports fall as Chinese demand slows

Exports of Swiss watches and clockworks overall fell 12.4 percent to a value of around 1.9 billion Swiss francs ($2.2 billion), with imports from China falling 50 percent, the association said Swiss watch industry announced in a statement on Thursday.

The figures highlight the challenging environment for Swiss watchmakers as consumers around the world have curbed purchases of expensive watches following a post-pandemic boom.

The decline was due to weak sales to Asia, with mainland China and Hong Kong accounting for two-thirds of the monthly decline in exports, the association said. Overall, exports fell by 2.7% in the first nine months of 2024 compared to the same period last year.

Even expensive watches with wholesale prices above 3,000 francs saw significant declines over the month, with exports falling by 7.3% in value terms. Expensive watches showed some resilience at the start of the year, while exports of more affordable models fell.

Major brands Rolex and Patek Philippe continue to see rising sales, said Jean-Philippe Bertschy, head of Swiss equity research at Vontobel. “If we exclude these brands, the decline in Swiss watch exports would be much more pronounced.”

Vacation

The association and a group representing watch workers warned last month of a significant drop in demand that is hurting Swiss watch brands and putting jobs at risk. They called on the Swiss National Bank to take measures to weaken the strong franc.

Some major brands are already using the government-sponsored “short-time work program” to furlough employees when orders fall. Sowind Group’s Girard-Perregaux and Ulysse Nardin brands have furloughed about 15% of workers, the company’s chief executive told Bloomberg News.

Suppliers of components such as watch cases, dials and bracelets are particularly struggling as companies take longer summer holidays and send their employees on short vacations.