The United States is set to be the largest export market for Swiss watches again this year. Barring improbable twists in the finale, the USA will still have first place, already obtained in 2021. Last year, Swiss timepiece exports to the United States amounted to 3.07 billion francs (about 3.13 billion euros). Second place went to China, with 2.96 billion and third to Hong Kong with 2.13 billion. For the first ten months of this year, the US leads with 3.17 billion, followed by China with 2.17 billion and Hong Kong with 1.57 billion.
That of the USA is a return to primacy, after a long phase characterized by second places. At the beginning of the 2000s, the first place was American. Then there were the firsts of Hong Kong and finally, in 2020, that of China. But in this trio of leading markets last year it was the USA that emerged the most. And in 2022 they have so far re-proposed themselves as number one. Of course, between 2019 and 2020 Hong Kong was affected by local political tensions and the pandemic; China also suffered more than others from the pandemic and the lockdowns between last year and this year. But the US has put its weight into this reconquest, because the numbers indicate that in 2021 all three of these markets have progressed, but the United States much more than the other two, with an annual increase of over 1 billion francs.
According to many industry experts, this US return is due to three main elements. First of all, so to speak traditional watches continue to have a large audience in the United States as well. If on the one hand it is true that the USA is a capital of smartwatches, with Apple playing a leading role, on the other it is also true that the clientele who look to “fine mechanics” products remains significant, however today often innovative technologies and materials, in which Swiss watches have the leadership. It could perhaps be summarized by saying that smartwatches make up the market more in terms of volume, with a strong presence in price ranges up to $500, and that so-called traditional watches make up the market more in terms of value, in higher price ranges.
Another relevant element is the push of the Swiss brands in terms of distribution, with an expansion of their presence in the USA. It is a push that has manifested itself both through individual brands, including for example Rolex, one of the best known even overseas, and through sales chains in the sector. Among the major examples, for the latter, that of the Swiss chain Bucherer and that of the British chain Watches of Switzerland, both expanding in the United States, also through acquisitions.
Then there is the currency issue. The Swiss franc has gained ground on many currencies but not on the US dollar, at least as regards the almost two years from the beginning of 2021 to today: in January last year 1 dollar was worth 0.89 francs, in mid-November this year was worth 0.94 francs. Compared to November 2021, the US currency remained positive by about 2% against the franc. The good level of the greenback against the strong Swiss currency has in all probability contributed to strengthening Swiss exports to the USA. The exchange rate is not the main element, especially considering high-end watches, which are traditionally less sensitive to the currency effect. However, the exchange rate too may have helped the US market in the last two years.