Swiss watch exports in the first half of 2022: strong global demand

Swiss watch exports in the first half of 2022: strong global demand

Swiss watches enjoyed strong global demand in the first half of this year. Watch exports increased in most markets with the notable exception of China and Hong Kong.

Swiss watch exports between January and June 2022 amounted to 11.9 billion francs, representing a growth of 11.9% compared to the first semester 2021. While 70% of this increase stems from mechanical watches made of precious metals or steel, the other categories also contributed to the overall upward trend.

The corresponding number of parts also rose to 7.2 million units (+3.2%). This means that an additional 225,000 watches crossed Swiss borders between January and June. Notwithstanding this welcome growth, the industry is at an all-time low in terms of volume, attaining less than half of the figures recorded ten years ago.

Mechanical timepieces have enjoyed a significant upturn, despite a drop in volume (-3.3%). Quartz watches recorded an even more notable upward trend, which led to an overall rise in volume thanks to an increase of 8.2%.

Watches priced at over 3,000 Swiss francs (export price) accounted for most of the growth in terms of value (+15.5%). The 500-3,000 Swiss francs category (+6.0%) also contributed to this growth, while the 200-500 Swiss francs category (-19.1%) suffered a sharp drop.

Among the main markets, the United States (+31.4%), the United Kingdom (+31.8%), France (+36.5%) and Spain (+41.8%) recorded very steady growth. The decline in China and Honk Kong was mainly due the fact that many retail stores were closed and products could not be delivered from the central warehouses for the lockdown in the months of April and May.

Forecasts for the Swiss watch industry in 2022 remain optimistic, despite a less favourable outlook overall and a higher degree of uncertainty. Watches will continue to benefit from a sustained demand and the appeal of the luxury market. However, the sector’s turnover might be impacted by several obstacles such as difficulties in the supply of raw materials and investments, the rising cost of energy and transportation, the lack of manpower and the strength of the Swiss franc.

(Source: Federation of the Swiss watch industry FH)