Swiss Watch Exports in November 2024: The Downward Trend Continues

The Swiss watch industry faced another challenging month in November 2024, as export figures reflected persistent pressures in key markets and across multiple product categories. According to the Federation of the Swiss Watch Industry (FH), total exports for the month amounted to CHF 2.4 billion, marking a 3.8% decline compared to November 2023. Over the first 11 months of the year, cumulative exports reached CHF 23.9 billion, down by 2.7% year-on-year.

This decline underscores the challenges faced by the industry, including macroeconomic uncertainty, shifting consumer behaviour, and the impact of geopolitical tensions on key export markets.

Material and Category Trends

Export performance in November was heavily influenced by trends in materials and case types:

• Steel Watches: A key driver of the overall decline, with export values falling by 5.8%. Steel remains the most widely used material in Swiss watchmaking, making this drop particularly significant.

• Precious Metal Watches: Export values in this category fell by 2.2%, indicating a slight slowdown in demand for luxury gold and platinum models.

• Bicolour Watches: Despite broader challenges, bicolour models (combining metals) remained relatively stable, recording only a 0.6% decrease.

In terms of volume, approximately 150,000 fewer watches were exported in November, representing a 9.4% drop compared to the same period in 2023. The steepest declines were seen in watches categorised under Other Materials (-20.4%) and Other Metals (-27.3%). This reflects weakening demand for non-traditional case materials, which had previously shown promise in capturing new market segments.

Segment Analysis by Price

All price segments experienced contraction in November, with mid-range models facing the steepest declines:

• Watches Priced Below CHF 500: A 6.1% decrease, reflecting subdued demand in entry-level markets, particularly in Asia.

• Watches Priced Between CHF 500 and CHF 3,000: This segment saw a sharp 14.9% drop in export values, driven by weakening interest in mid-tier models, which are often considered discretionary purchases.

• Watches Priced Above CHF 3,000: High-end timepieces showed remarkable resilience, declining by just 0.9%. This stability suggests that the luxury segment remains relatively immune to economic pressures.

The decline in mid-range watches could indicate growing competition from smartwatches and emerging luxury brands offering similar price points.

Export Market Performance

Out of the top 10 export destinations, only the United States recorded positive growth in November, with exports rising by 4.7%. Other key markets showed mixed results:

• Japan: Recorded a modest decline of 2.5%, reflecting a relatively stable market environment.

• China: A sharp 27.0% drop, marking continued challenges in a market traditionally pivotal for Swiss watch exports.

• Hong Kong: Declined by 18.8%, maintaining its negative trajectory amid changing consumer habits and economic uncertainties.

• United Kingdom: Exports fell by 8.3%, indicating a subdued post-Brexit economic environment.

• Singapore and UAE: Both markets experienced moderate declines of 6.1% and 4.9%, respectively.

Smaller Markets Show Promise

Despite declines in major markets, smaller export destinations provided bright spots in November:

• South Korea: Recorded a 21.7% increase, highlighting strong demand for luxury Swiss watches among affluent consumers.

• Spain: Exports surged by 33.5%, driven by robust tourism and growing interest in high-end watches.

• India: Achieved a staggering 59.7% growth, reflecting its emergence as a key growth market for Swiss watch brands.

The strong performance in these markets demonstrates the potential for diversification beyond traditional luxury hubs.

Industry Challenges and Opportunities

The export data for November highlights several key challenges for the Swiss watch industry:

1. Geopolitical and Economic Uncertainty: Economic pressures in China and Europe continue to weigh on consumer confidence and discretionary spending.

2. Changing Consumer Preferences: The rise of smartwatches and shifting preferences in younger demographics are reshaping demand patterns.

3. Sustainability: As environmental concerns grow, brands are under pressure to innovate in materials and production methods.

At the same time, opportunities exist for brands willing to adapt:

• Luxury Resilience: The sustained demand for high-end models offers a stable foundation for growth.

• Digital Transformation: Investing in e-commerce and digital marketing could help brands reach untapped audiences.

• Expanding in Emerging Markets: Markets like India, South Korea, and Spain offer promising growth trajectories.

Looking Ahead

As 2025 comes to a close, the Swiss watch industry faces a complex landscape that demands innovation and strategic agility. While the luxury segment continues to provide a stronghold, addressing challenges in mid-range and entry-level categories will be crucial for long-term sustainability.