Swiss watch exports showcased resilience, marking a 3.8 per cent surge to 2.3 billion Swiss francs ($2.6 billion) in September, even in the face of substantial declines in key markets like the US and China. The Federation of the Swiss Watch Industry’s report revealed a compelling trend where escalating prices significantly contributed to the overall export value, compensating for a 2.9 per cent dip in the number of watches sold internationally.
Amidst the challenges, certain regions emerged as beacons of hope for the Swiss watch industry. Notably, Hong Kong witnessed a noteworthy 24 per cent growth, while Japan and the United Arab Emirates experienced export value increases of 9 per cent and 2.3 per cent, respectively.
Although the luxury sector faced a slight slowdown, there was a promising 8.2 per cent increase in the value of high-end timepieces exported, despite a 3 per cent decrease in the quantity of watches priced above 3,000 Swiss francs. Notably, the segment of entry-level-priced watches soared by 4.3 per cent, stimulated by the success of the MoonSwatch and the SwatchxBlancpain collaboration.
This upward trajectory comes in the wake of a record-breaking year for Swiss watch exports in 2022, exceeding 24 billion francs. However, the luxury goods market has encountered headwinds due to the impact of rising inflation and interest rates, especially affecting the demand from aspirational buyers in the lower-priced segment.
As the global economy treads uncertain waters, the Swiss watch industry continues to navigate through market challenges, relying on strategic pricing and leveraging key emerging markets to sustain growth and momentum in the face of evolving consumer dynamics.
