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As the Middle Kingdom recovers, the United States tumbles…<\/p>\n
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While Swiss watch exports to Hong Kong and China, their fourth and fifth largest destinations respectively, finally regained momentum in September after months of decline, they plunged dramatically across the Atlantic.<\/p>\n
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As a result, international sales of Swiss timepieces contracted by 3.1% to 2 billion Swiss francs<\/b> last month. Over the first nine months of the financial year<\/b>, they fell by 1.2%<\/b> to 19 billion francs.<\/p>\n
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According to the Federation of the Swiss Watch Industry (FH)<\/b>, while most markets recorded a sharp increase last month, \u201cthe massive correction in the United States (-55.6% to 157.7 million Swiss francs) canceled out all the effects.\u201d<\/p>\n
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\u201cWithout this expected but extraordinary development, Swiss watch exports would have grown by 7.8%.\u201d<\/p>\n
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The shock caused by the Trump administration’s introduction of very high customs duties of 39% on Swiss products on August 7 explains the slump in Swiss watch sales in this market.<\/p>\n
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In the months leading up to this new tax, and since its announcement last April, the US market had anticipated it<\/b> and accelerated its purchases of Swiss watches to build up stocks. Exports of Swiss watches<\/b> thus exploded in April (+149.2%) and July (+45%),<\/b> interspersed with two months of decline in May and June.<\/p>\n
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Since August, the boom has subsided in the United States, with a 24.9% drop in Swiss watch purchases to 245.1 million Swiss francs. This has not prevented this market from remaining \u2013 by far \u2013 the leading destination for Swiss watchmakers…<\/p>\n
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But this time, the 50% drop in US exports in September caused this market to fall two places behind the United Kingdom and Japan<\/b>.<\/p>\n
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In detail, the United Kingdom,<\/b> which was only in fourth place last August, rose to the top<\/b> of the ranking thanks to a 15.2% increase<\/b> to 173.3 million Swiss francs.<\/p>\n
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For its part, Japan<\/b> managed to move up from fifth to second place<\/b> among Swiss watchmakers’ destinations despite a continuing downward trend (-7.9%<\/b> to 158 million Swiss francs), which was nevertheless more moderate than in the previous four months.<\/p>\n
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On the Asian continent, the good news came from Hong Kong (+20.6% to 155.6 million Swiss francs) and China (+17.8% to 151.7 million Swiss francs), both of which showed a \u201cdynamic recovery\u201d after a slow decline.<\/p>\n
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Finally, the sixth largest destination for Swiss watches, Singapore, also regained momentum (+8.3% to 133.4 million Swiss francs) after two months of ups and downs (+14.8% in July and -14.2% in August).<\/p>\n
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Other Asian countries, which do not appear in the top six destinations for Swiss watches, posted very strong growth, with South Korea up 21.5% and India up 28.3%.<\/p>\n
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The FH also notes significant gains in Mexico (+44.1%) and Australia (+14.2%).<\/p>\n
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On the other hand, in Europe, France (-3.5%), Italy (-3.9%), and even more so Germany (-14.6%) showed less appetite for Swiss timepieces.<\/p>\n
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In terms of products, only timepieces<\/b> with an export price of between 500 and 3,000 Swiss francs saw an increase (+4.2%<\/b>) in September. Those sold for more than 3,000 francs fell by 3.4%, while those sold for less than 500 francs plummeted by 15.6%.<\/p>\n
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In terms of materials, only one segment, that of timepieces made of precious metals (+1.5% to 769.9 million Swiss francs), grew<\/b>, while bimetallic products fell by 10.4% to 323.7 million Swiss francs and steel products by 3.8% to 618.4 million Swiss francs. Those made of \u201cother metals\u201d and \u201cother materials\u201d fell by 5.5% to 110.4 million and 5.2% to 82.3 million, respectively.<\/p>\n
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In terms of volume, Switzerland exported 94,000 fewer pieces in September, a drop of 7.6%, \u201cmainly attributable to steel watches (-6.1%) and the Other Materials category (-16.2%)\u201d.<\/p>\n
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