Swiss watch exports experienced a year-on-year increase of 6.9% in August, reaching CHF 17.1 billion ($20.2 billion), according to the Federation of the Swiss Watch Industry Exports (FHS). This rise surpasses the modest 1.6% growth recorded in July. However, the overall trend for 2024 remains unfavorable, with exports down 1.4% year-to-date.
FHS noted that many companies in the sector are expressing concerns about the lack of medium-term visibility, prompting a more cautious approach moving forward. Some firms are even considering staff reductions as a response to the uncertain market conditions.
Exports to key markets such as China and Hong Kong continued to decline, albeit at a slower pace, with drops of 5.9% and 11.1%, respectively. “Despite this slight improvement, forecasts for these markets remain very negative for the coming months,” FHS stated in its monthly update.
As the downturn continues to affect their operations, Swiss watchmakers and suppliers of tools, machinery, and components have begun implementing short-time working arrangements and seeking governmental assistance. Notably, Girard-Perregaux and Ulysse Nardin, which were divested by the Kering Group earlier this year, announced they would reduce working hours for 15% of their workforce.
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