Swiss Watch Exports in August 2024: Modest Growth with Mixed Signals

The Federation of the Swiss Watch Industry has released its export report for August 2024, showing a modest growth of 6.9% compared to the same month in 2023. This follows a slight uptick seen in July. However, despite this recent positive momentum, the overall results for the first eight months of the year, totaling CHF 17.1 billion, remain underwhelming, with forecasts for the year-end still negative.

August’s growth was largely driven by a strong performance in the luxury segment, particularly in watches made from precious metals, which saw a 21.2% increase in value. Bicolor watches, combining materials like gold and steel, also contributed significantly with a 12.7% rise. However, the category of steel-cased watches did not fare as well, posting a decline of 7%. In terms of volume, all major watch categories experienced a drop of approximately 10%, resulting in an overall decline of 9.5%, or 125,000 fewer units shipped.

In different price segments, only watches priced above CHF 3,000 showed positive growth, registering a 14.9% increase in value. The lower-priced segments struggled, with declines both in value (-14.4%) and in volume (-11.3%).

Most export markets saw gains in August. The strongest growth was recorded in the United States (+7.6%), Japan (+14.4%), Singapore (+9.3%), the United Arab Emirates (+26.9%), Italy (+17.6%), and South Korea (+14.2%). Meanwhile, demand remained steady but unspectacular in the UK (+3.5%), Germany (+2.9%), and France (+0.7%).

However, challenges persist in key Asian markets. Both China (-5.9%) and Hong Kong (-11.1%) continue to show declining demand for Swiss watches, although the contraction has been less severe compared to previous months. The outlook for these markets remains bleak as economic pressures weigh on consumer spending.