Swiss Watch Exports Suffer Steepest Decline Since 2020

GENEVA, Switzerland - April 26, 2024  The Swiss watch industry, a symbol of luxury and precision, is facing a significant challenge. According to data released last week by the Federation of the Swiss Watch Industry (FH), exports in March 2024 witnessed a dramatic 16% year-on-year decline, marking the steepest drop since the economic downturn of 2020.

This decline was not limited to specific markets or price points. All major markets, including the United States, Japan, China, Hong Kong, Singapore, and the United Kingdom, saw a collective decrease in exports by 22%. Notably, the Chinese market, a crucial driver of growth in recent years, experienced a particularly severe downturn. Mainland China and Hong Kong saw exports plummet by a staggering 41.5% and 44.2% respectively.

While most markets witnessed a decline, a few bright spots emerged. Taiwan, Saudi Arabia, Mexico, India, and Israel bucked the trend and registered positive growth. Additionally, in terms of materials used, exports of watches made from "other metals" saw an unexpected 8.5% increase in value.

The reasons behind this sudden downturn remain under investigation. Experts speculate that a combination of factors, including global economic uncertainties, ongoing geopolitical tensions, and the lingering effects of the COVID-19 pandemic, might be at play.

Despite this setback, the Swiss watch industry retains its position as a global leader in luxury timepieces. Analysts expect a gradual recovery in the coming months as economic conditions stabilize.