Swiss watch exports continue to decline through 2015
Exports of Swiss watches dropped by 12.3 per cent in October, compared with the same month last year, continuing a downturn trend for the once-booming industry.
The latest report by the Federation of the Swiss Watch Industry FH, the official trade body for the industry, stated that the “poor result stems primarily from an acute concentration [on] the main markets of Asia and the United States.”
Hong Kong, traditionally one of the best markets for Swiss watches, recorded a drop of 38.5 per cent, its worst performance this year, while the USA dropped 12.2 per cent. Japan, China, Italy and Germany followed consecutively.
The value of Swiss watches exported throughout the month of October reached just over CHF2 billion (Swiss francs), a value that previously was “easily exceeded”, according to the federation.
However, the decline was mainly noticeable in the segment of watches priced above CHF3,000, which recorded a downturn in excess of 13 per cent.
Since the beginning of the year, the Swiss watch industry has been hit by several factors that contributed to a steep decline in its performance and health. Starting off with the spike in value of the Swiss franc, many brands faced challenges in stabilising their prices across different global markets, especially in Europe, all through to the aftermath of the recent attacks on Paris.
(CHF1 = $0.98 = AED3.61, at the time of publishing)
First published on Aficionado, sister publication of Luxurymena.