Swiss Watch markets continue the downward trend

Written by James Matthews

In spite of a strong BaselWorld show the decline in Swiss watch exports accelerated in March. The value of products leaving Switzerland fell by 26.6% compared to March 2008, despite a favourable base effect. The very clear first-quarter trend has led the sector to a decline of 23.5% over this period, with the annualised variation becoming negative (-1.6%) for the first time in five years.

Exports of wristwatches (-27.2%) fell more sharply than other products. Bimetallic timepieces were hit particularly hard in March, while gold and steel remained within the average. In volume terms, the decline was less marked. The record shows 220,000 fewer units than in March 2008. This downturn is attributable to steel watches. The category of other materials however recorded an increase.

The decline focused mainly on the highest price segments in March. Wristwatches costing between500 and 3,000 francs remained in a very negative trend, joined by timepieces costing more than3,000 francs, which to date had shown more resilience. Watches costing less than 200 francs registered a below average decline, while products between 200 and 500 francs recorded an increase of several points in value terms and 9.6% by volume.

The situation proved difficult on almost all markets in March. Hong Kong registered a steep decline. The United States was the hardest hit, seeing its value fall by half for the second month running. Europe recorded an above average performance. Italy lost ground, while France on the other hand registered growth. The downturn in Japan continued to flatten. Germany held up welland recorded only a measured decline. China (-32.6%) was dragged into the red, as was Singapore (-33.6%) and the United Arab Emirates (-58.1%).

This post was written by James Matthews. If you have any questions or comments you may contact him at james@jewelerslounge.com