Listen to the audio version of the article
Swiss watch exports ended the slight decline in July and began to grow again in August. Exports of Swiss timepieces amounted to 1.81 billion francs (1.90 billion euros at the current exchange rate) in August this year, 4% more than in the same month of 2022. As regards the whole of the first eight months of 2023, the export of Swiss watches was 17.35 billion francs (18.21 billion euros), an increase of 9.2% compared to the same period last year .
The Swiss watch hub represents over half of the sector’s global turnover and exports over 90% of its production. The export data provided by the Federation of the Swiss Watch Industry (Fh) is therefore an important indicator. In August, eight of the top ten markets recorded a positive sign, with the United States and Hong Kong still acting as the main drivers; a negative sign in the month for China and Italy, which however are also well positioned if you look at the total for the first eight months.
These are the August data for the top ten markets: United States 297 million francs (+13%), China 190 million (-27%), Hong Kong 146 million (+29%), United Kingdom 136 million (+21 %), Japan 125 million (+8%), Singapore 111 million (+3%), Germany 96 million (+5%), France 79 million (+14%), United Arab Emirates 67 million (+8%), Italy 57 million (-6%). As far as China is concerned, the August data, according to the FH, was affected by both the slowdown in its economic growth and the statistical effect due to the strong rebound recorded a year earlier, linked to the post-lockdown in Shanghai.
In August, exports of the two extremes, the high range and the basic range, increased. The watches of the first, with a price above 3 thousand francs, had a +5.1% in value; timepieces in the second category, priced under 200 francs, recorded an increase of 11.6%. Watches in the medium-high range, with a price between 500 and 3 thousand francs, had a -3.6%; mid-range timepieces, priced between 200 and 500 francs, recorded a -0.5%.
The export picture for the first eight months of 2023 is different from that of the month of August alone, all ten main markets are in fact in positive territory in the period. These are the figures: United States 2.6 billion francs (+9%), China 1.8 billion (+9%), Hong Kong 1.5 billion (+26%), Japan 1.16 billion (+6% ), United Kingdom 1.12 billion (+9%), Singapore 1 billion (+6%), Germany 898 million (+10%), France 823 million (+8%), United Arab Emirates 789 million (+12%) , Italy 694 million (+10%). South Korea, which is in eleventh place, did well in August and thus reduced its negative balance for the eight months (-9%, compared to -11% in the first seven months). The international economic slowdown and the strength of the franc, which makes Swiss products more expensive in real terms, have not yet stopped the march of Swiss exports. The performance of the first eight months of this year is a clearly positive result, considering the context. As always, the Federation of the Swiss Watch Industry remains cautious about the prospects. For the Fh, it is possible that in this second half of the year the growth in exports will prove less strong overall than that of the first half. This should not prevent, the albeit cautious Federation admits, from the final budget for 2023 recording a significant increase compared to 2022.