And shifting international demand
Swiss watch exports declined by 2.8% in 2024 in comparison with the earlier yr, reaching 26.0 billion Swiss francs (CHF), as weak demand in Asia, notably in China and Hong Kong, impacted the worldwide market. The decline marks a notable shift for an trade that had beforehand demonstrated regular restoration for the reason that pandemic years.
The decline was broadly constant throughout all 4 quarters of 2024, in response to information launched by the Federation of the Swiss Watch Business (FH). The autumn displays weakening demand for mid-range and lower-priced watches, in addition to broader macroeconomic uncertainty in key markets, together with components of Asia and Europe.
Whereas the US remained a vibrant spot, rising 5.0% year-on-year and reinforcing its place as the biggest marketplace for Swiss watches, exports to China plummeted by 25.8%, one of many steepest annual drops for the reason that Covid-19 outbreak. Hong Kong adopted intently with an 18.7% contraction. The 2 markets mixed accounted for a considerable share of the worldwide downturn.
Asia, which represents practically half of all Swiss watch exports by worth, skilled a regional decline of seven.6% in 2024. This stoop weighed closely on international efficiency, offsetting development in North America (+5.4%) and a comparatively secure European market (-0.1%).
Quantity and worth decline
The variety of watches exported from Switzerland in 2024 decreased considerably, down 9.4% in comparison with 2023, totalling 15.3 million models. This marks one of many lowest volumes recorded in latest historical past. The typical export value rose to $ 1,837, highlighting a continued emphasis on high-end timepieces over mass-market fashions.
Watches priced under CHF 3,000 noticed a pointy decline in turnover, dropping 15.6% in worth. In distinction, timepieces within the luxurious phase—exported at costs above CHF 3,000—rose by a modest 1.0%, though this enhance was inadequate to offset the broader losses.
Mechanical watches continued to dominate the market, with a slight 2.0% enhance in worth, whereas digital watches declined by 3.5%. Nevertheless, mechanical models additionally declined in quantity, reinforcing the development in the direction of exclusivity and better margins within the face of falling international gross sales.
Metal watches underneath stress
Watches manufactured from metal, one of many trade’s largest classes, posted a 9.8% drop in worth and a 7.0% fall in unit exports. Treasured metallic watches skilled a slight enhance in worth (+2.2%) regardless of a 5.1% decline in quantity, primarily attributable to greater common costs per watch.
Different supplies and metals carried out poorly, with exports of watches constituted of ‘Different metals’ down 16.2%, and people from ‘Different supplies’ declining by 12.2% in quantity.
Japan rises, the UK and Europe are combined
Japan emerged as one of many stronger markets in 2024, rising 7.8% on the again of elevated vacationer purchases. The nation changed Hong Kong because the third-largest vacation spot for Swiss watches. South Korea additionally carried out effectively, up 8.7%, aided by a beneficial base impact following a weaker 2023.
The UK, Switzerland’s fifth-largest market, noticed a slight contraction of 1.6%. France (+2.5%) bucked the development, whereas Germany (-3.8%) and Italy (-1.6%) posted modest declines. The contrasting outcomes throughout Europe recommend ongoing financial pressures and shopper uncertainty, though the area largely maintained its place by way of complete export worth.
Center East and Africa
Though not detailed within the core dataset, the Center East and Africa stay vital rising markets for Swiss watchmakers, notably luxurious manufacturers. These areas have proven resilience in earlier years, pushed by high-net-worth people and robust demand for status items. As demand softens in Asia and plateaus in Europe, Swiss producers are prone to shift extra consideration to the Gulf Cooperation Council (GCC) states, together with the UAE and Saudi Arabia.
Dubai, already a regional hub for luxurious retail and watch gala’s, might play a rising position in stabilising export flows, particularly within the high-end watch phase.
China and worth focus
Globally, Switzerland continued to dominate the watch export market, with a complete of $29.5 billion in 2024, representing over half of all international exports by worth. Nevertheless, its efficiency contrasts starkly with that of China, which exported watches price $ 5.0 billion, a 5.4% enhance in native forex phrases.
Chinese language exports, which surged by greater than 11% in quantity to almost 600 million models, underscore a widening hole between mass-market and luxurious segments. The typical export value of a Chinese language watch stays round $4, in contrast with Switzerland’s $1,837.
Notably, Chinese language watch exports to Russia jumped by 564.8% in 2024, reflecting shifting commerce routes and geopolitical realignments. The Center East can also see elevated inflows of Chinese language watches, particularly within the decrease and mid-market ranges, additional diversifying shopper alternative within the area.
Broader consumption shifts
On the import aspect, the US continued to guide as the biggest watch-importing nation, with imports growing by 9.1% to $ 7.6 billion. France additionally posted average development (+2.0%), whereas Japan recorded a pointy rise of 16.5% to succeed in $3.6 billion in imports, mirroring its growing demand for Swiss-made watches.
Hong Kong’s imports dropped by 9.3%, whereas China’s fell much more dramatically, down 22.7%. This fall displays sluggish home consumption, regulatory pressures, and a pivot towards native or non-Swiss manufacturers.
Switzerland itself lowered its imports by 7.2%, aligning with the broader slowdown in manufacturing and exports.
Outlook for 2025
The outlook for the Swiss watch trade in 2025 stays unsure. With demand cooling in Asia and key European markets, watchmakers might must adapt to a altering international panorama. The sustained power of the US market presents some optimism, whereas new development alternatives might lie in Africa and the Center East.
The statistics launched by the FH mirror export information slightly than precise shopper gross sales. In consequence, discrepancies might exist between export volumes and end-user buy figures.
Picture: The variety of watches exported from Switzerland in 2024 decreased considerably, down 9.4% in comparison with 2023, totalling 15.3 million models. Credit score: Grandslam
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