Solid growth for Swiss watch export in 2022

Swiss watchmaking had an excellent year in 2022.  After recovering to pre-Covid levels in 2021, the industry experienced solid growth that r...

Swiss watchmaking had an excellent year in 2022.  After recovering to pre-Covid levels in 2021, the industry experienced solid growth that resulted in record-breaking performance, despite significant declines in two of its three main markets.

In 2022, Swiss watch exports reached 24.8 billion Swiss francs, an increase of 11.4% over their 2021 performance. The strong demand for luxury products and the rise in global wealth contributed to the overall success of the watch industry.

Entry-level Swiss-made watches were a resounding success and ended the year with positive results. While the unfavorable economic conditions had a limited impact on the business market, the health situation, particularly in China, had a more direct effect. The geopolitical situation in Russia also had limited consequences, affecting the annual result by only around 1%.

From a production standpoint, watchmaking companies had to deal with raw material shortages, increased costs, and longer lead times. A labor shortage was also an obstacle in some cases. Nevertheless, the industry continued to invest, innovate, and create new jobs.

Despite ongoing uncertainties, the prospects for Swiss watchmaking remain favourable. Solid foundations and continuing steady demand should drive growth in 2023. A high baseline and the level of risk will imply a lower, but still significant, growth rate than in 2022.

Wristwatches represented over 95% of export value and generated 23.7 billion Swiss francs, 11.6% more than in 2021. The number of items rose to 15.8 million, 50,000 (+0.3%) more than the previous year. Volume growth was split between the remarkable increase in the Other materials category (+32.3%) and the steady decline in steel watches (-7.8%) and those made from other metals (-18.4%).

Quartz watches supported the growth in volume, with an increase of 385,000 units (+4.1% compared with 2021). Conversely, mechanical watches fell by 335,000 items (-5.3%), but grew in value by 11.5%.

The main price segments all increased, except for the 200-500 Swiss francs (export price) range. While the latter fell by 24.0%, its value represents less than 3% of export turnover and only accounted for one percentage point in the overall result. Nonetheless, this long-term trend is a worry for the volumes concerned, which also fell by 22.2%, or 625,000 items. At the same time, watches priced at less than 200 Swiss francs achieved 5.9% growth 

The United States (+26.3%) saw very strong growth for the second consecutive year, taking it to a particularly high level.

Asia was split between the decline in China (-13.6%) and Hong Kong (-10.5%) on the one hand, and the steady growth in other markets, such as Japan (+19.5%), Singapore (+26.4%), the United Arab Emirates (+12.7%) and Taiwan (+15.0%) on the other. South Korea (+1.9%) recorded more moderate growth due to the absence of Chinese tourists. The fall in China was largely due to measures to combat the pandemic, particularly the lockdown in Shanghai in the second quarter. The situation in Hong Kong, which has declined by more than half in eight years (-53.7%), reflects a long-term market adjustment, combined with the consequences of the pandemic.

All the major European markets grew, thanks to strong local demand and the return of tourists from the United States and the Middle East, and elsewhere.

(Source: Federation of the Swiss watch industry FH)