Swiss Watch Exports Rise as US and Japan Offset Steep China Drop
Swiss watch exports in July 2024 showed a positive trend with a 10% year-on-year increase, reaching 1.9 billion Swiss francs ($2.1 billion). This growth was made possible by increased shipments to the United States and Japan, which helped to offset the significant decline in export volumes to China, where demand for Swiss watches plummeted by over 40% compared to last year.
According to the Swiss Federal Customs Office, exports to the US increased by 5% to 470 million francs, while exports to Japan rose by 12% to 285 million francs. This is indicative of the sustained interest in Swiss watches in these markets despite broader economic challenges.
China, traditionally one of the largest consumers of Swiss watches, has faced slowing economic growth and the negative effects of lockdowns, significantly reducing demand for products. This sharp drop in China posed a significant challenge for the Swiss watch industry, which has relied on growth in China as a key factor of its success for many years.
Swiss manufacturers, such as Rolex and Patek Philippe, are still adapting to the changing consumer habits, as younger buyers prefer smartwatches and other digital devices. This may also be one reason for the declining interest in traditional mechanical watches.
Overall, while there is pain in the shrinking Chinese market, the Swiss industry continues to show strength thanks to robust support from the US and Japan.
