Swiss watch exports encountered a notable decline in February, marking the first downturn in more than two years, a report from the Federation of the Swiss Watch Industry revealed on Tuesday.
According to the report, shipments of timepieces saw a 3.8% drop to CHF 2.15 billion ($2.43 billion) for the month. This decline follows a sluggish performance in January, where orders experienced only a modest 3.1% increase overall and a significant 4.7% decrease in Hong Kong. Comparatively, December witnessed a 5.5% rise in exports globally and a substantial 15% surge in the municipality.
The downturn is primarily attributed to a challenging comparison with February 2023, when the reopening of the border between China and Hong Kong spurred a resurgence in mainland visitors purchasing luxury goods.
“The February decline marks a significant departure from the steady growth observed over the past two years,” remarked the federation. “While certain key markets continued on a positive trajectory in February, their growth was insufficient to counteract the sharp declines observed in mainland China and Hong Kong.”
While shipments to the US increased by 5.5% to CHF 364.8 million ($410.8 million), exports to China, the federation’s second-largest market, plummeted by 25% to CHF 189.5 million ($213.4 million), and those to Hong Kong decreased by 19% to CHF 172.8 million ($194.6 million). In contrast, exports to Japan experienced a 6% uptick, and gains of 3.3% and 9% were noted in Singapore and the United Arab Emirates (UAE), respectively. However, most European markets witnessed an average decrease of 3.5%.
The decline in exports was evident across all price points. Watches priced below CHF 200 ($225) experienced a modest 0.4% decrease, while those valued between CHF 200 and CHF 500 ($563) slid by 4%. Timepieces in the CHF 500 to CHF 3,000 ($3,377) range witnessed a notable 14% plunge, and those exceeding CHF 3,000 recorded a decline of 1.8%, as highlighted by the federation.
In the initial two months of the year, overall exports registered a 0.7% decrease to CHF 4.07 billion ($4.58 billion).
