Swiss Watch Exports Continue to Boom in March
PARIS — It’s still boom time for Swiss watch exports, which rose 13.8 percent in March and 11.8 percent for the whole quarter, the Federation of the Swiss Watch Industry said Tuesday.
With a total value of 2.4 billion Swiss francs, or $2.7 billion at current exchange rates, sales were up in all materials, regions and price points, in export value as well as volumes.
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A total of 1.5 million timepieces were exported in March, a nearly 24 percent rise versus last year that amounted to an additional 300,000 units, a marked increase on February’s 6.2 percent progression. Watches priced under 200 Swiss francs contributed strongly, with a surge of 34.2 percent in units and 38.6 year-on-year in value, respectively.
Even the troubled 200-500 Swiss francs segment, which remained at historically low levels according to the group, saw a 2 percent volume rise and a 2.4 percent value bump.
Across the board, the picture in March was rosy, with high single- and double-digit growth globally save for a handful of countries including South Korea, Taiwan, Saudi Arabia and Qatar.
While the U.S. continued its 27-month growth streak and remained the top market for Swiss watches, its 7.8 percent increase in March suggested a softening, down from last month’s 15.5 percent and below the 20 percent to 40 percent leaps seen in 2022. Europe performed well, logging an overall 12 percent rise with Germany and France leading.
Hong Kong jumped to second place in March, bolstered by its 61.9 percent growth. China’s 14 percent growth has not yet made up for its pandemic-related slowdown.
For Bernstein analyst Luca Solca, “Hong Kong remains a crucial component of Chinese luxury spending,” with the territory accounting for more than 10 percent of global watch sales in the past. “Visitors from [mainland China] will continue to find Hong Kong compelling because of the lower prices in Hong Kong relatively to [mainland prices],” he continued.
Among the top six markets highlighted by the Swiss watch body, Singapore also grew a “steady” 19 percent and Japan saw a 1.5 percent rise.
While more modest in size, other countries in the region are also showing effervescence, with Thailand bounding 39 percent in March, for an overall 58.5 percent leap in the first quarter of 2023. Malaysia also made its entry in the top 30 markets, overtaking Portugal and Israel.
According to RBC analyst Piral Dadhania, the month’s result “confirms ongoing momentum in the Swiss watch industry, albeit with changing growth contributions towards key Asian market, with ongoing U.S. normalization.”
The export figures, based on foreign trade statistics prepared by the Swiss Federal Customs Administration, are based on export prices and the declarations made by exporting firms. They come as luxury groups are publishing first-quarter sales.
LVMH Moët Hennessy Louis Vuitton reported an 11 percent growth in its watches and jewelry division, including “excellent progress” for its watchmaking maisons, which include Tag Heuer, Hublot and Zenith.
At Hermès, the first quarter showed an “outstanding” performance in the watch sector on the strength of its H08 line, Arceau and Le temps voyageur models that boosted sales 25 percent to 166 million euros.
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