Swiss Watch Exports Fell Again in October, Dragged by China

By Maitane Sardon

Exports of Swiss watches continued to decline in October, with a significant drop in shipments to mainland China offsetting growth in the U.S., according to data released Tuesday by the Federation of the Swiss Watch Industry, or FH.

Total exports of Swiss wristwatches and other products came to 2.3 billion francs ($2.60 billion), 2.2% lower than in October 2023. Overall exports declined by 2.6% in the first 10 months, compared with the same period a year ago, FH said.

The performance in the U.S., the largest export market for Swiss watches, continued its upward trend with an 11.3% increase, consolidating the year's growth to date. Japan's performance was also positive, with shipments climbing by 20% as the country's retailers continued to benefit from a weak yen.

Conversely, China and Hong Kong posted a decline of 38.8% and 14.8%, respectively. The weak performance in those two key markets represented a major obstacle at the global level, the Federation said.

The figures underscore the difficult environment for the industry, as shoppers from mainland China rein in on luxury spending amid a sluggish property market and an uncertain macroeconomic outlook. Swiss watch exports are on track to post an overall decline for 2024 despite beginning the year positively.

By price, expensive watches with prices above 3,000 francs were the only category to show resilience, rising 1.7% by value despite a fall in the number of units.

Watches with an export price of less than 500 francs saw their export value diminish by 9.4% compared with October 2023, while the 500-3,000 francs segment saw the sharpest decline at 21%, the Federation added.

Write to Maitane Sardon at maitane.sardon@wsj.com

(END) Dow Jones Newswires

November 19, 2024 05:27 ET (10:27 GMT)

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