Swiss Watch Exports Stoop on Decrease Shipments to China, Hong Kong

Month-to-month Swiss watch exports fell for simply the second time in three years, led by decrease shipments to China and Hong Kong, as demand for luxurious timepieces cools.

Exports dropped 3.8 p.c by worth in February to 2.15 billion Swiss francs ($2.4 billion) from a yr earlier, the Federation of the Swiss Watch Business stated Tuesday.

The variety of watches shipped from Switzerland additionally fell, slumping 5.2 p.c to 1.2 million models.

Demand for Swiss watches and luxurious timepieces surged in the course of the pandemic as shoppers caught at dwelling and flush with money from authorities stimulus measures rushed to purchase high manufacturers, together with Rolex and Patek Philippe.

Hamstrung by provide chain points after halting manufacturing throughout lockdowns, many Swiss watchmakers couldn’t sustain and most manufacturers drove up costs.

Now a reckoning is underway as wars rage in Ukraine and the Center East and financial pressures persist. Shipments of watches priced at over 3,000 francs, which account for about 80 p.c of export values, fell by 1.8 p.c in February.

Exports to mainland China plunged by 25 p.c from a yr earlier, and Hong Kong shipments fell 19 p.c. The US remained the highest vacation spot for Swiss watches, with exports rising 5.5 p.c. Exports to the UK dropped 2.1 p.c, the Federation stated.

By Andy Hoffman

Study extra:

Swiss Watch Exports Slowing After a Report Run

Swiss watch exports hit document ranges final yr as watchmakers raised costs and shipments of cheaper quartz watches jumped, although the tempo of progress tapered off within the second half.