Swiss watch exports fell 5% year on year in December amid a downturn in the luxury segment in China and Hong Kong and weak demand in all major markets.
Shipments of luxury timepieces dropped to CHF 2.03 billion ($2.24 billion), the Federation of the Swiss Watch Industry said Thursday. Orders from all but four of the top 15 markets saw demand slip, while the four major markets showed significant declines.
“All four of the top export destinations declined in December,” the federation said. “The US recorded a slight downturn for the first time in six months. Hong Kong moved up into second place, with a less marked decline than in the previous months, while China continued to perform very poorly. Japen saw a very significant reduction, impacted by a marked base effect. Among the top 15 markets, only the United Arab Emirates, United Kingdom, Spain and Australia achieved positive results.”
Exports to the US slipped 1% to CHF 345.7 million ($380.8 million) for the month, as shipments to Hong Kong fell 6% to CHF 159.1 million ($175.3 million). Supply to China dropped 19% to CHF 151.2 million ($166.6 million) and sales to Japan declined 13% to CHF 137.8 million ($151.8 million).
Timepieces in all price ranges saw a weak performance. Those valued above CHF 3,000 ($3,305) were down 5%, while those priced between CHF 500 ($551) and CHF 3,000 decreased 1.8%. Meanwhile, watches that cost between CHF 200 ($220) and CHF 500 plummeted 13% and ones below CHF 200 dropped 5%.
Meanwhile, total shipments for the full year declined 2.8% CHF 25.99 billion ($28.65 billion) in 2024. The decrease came as global socioeconomic factors have been affecting demand for luxury.
Supply to the US, the federation’s top market, increased 5% versus the previous year to CHF 4.37 billion ($4.82 billion). Exports to China slid 26% to CHF 2.05 billion ($2.26 billion), while those to Japan advanced 8% to CHF 1.97 billion ($2.17 billion). Orders to Hong Kong plunged 19% to CHF 1.91 billion ($2.11 billion).
Image: A Swiss-watch display. (Shutterstock)
