Swiss watch exports jump to highest since 2014 as industry booms

Exports rose 8.3 per cent in July to 2.2 billion Swiss francs (S$3.2 billion) compared with the same month in 2021. PHOTO: VACHERON CONSTANTIN

GENEVA (BLOOMBERG) - Swiss watch exports rose again in July, increasing to near record levels and notching their highest value in eight years as demand for pricey Rolex, Omega and Vacheron Constantin timepieces booms.

Exports rose 8.3 per cent in July to 2.2 billion Swiss francs (S$3.2 billion) compared with the same month in 2021, the Federation of the Swiss Watch Industry said on Thursday (Aug 18).

This is the highest value for exports of Swiss watches since a record performance in October 2014.

Demand for luxury watches has been soaring after many cash-flush consumers discovered Swiss brands from Rolex to Audemars Piguet and Patek Philippe while stuck at home during the pandemic.

Exports to the United States increased 13.5 per cent from the year before. It remained the biggest market for Swiss watch exports after overtaking China last year.

The China market is recovering as Covid-19 lockdowns eased, with exports rebounding to gain 18.4 per cent during the period to hold its position as the second-biggest market for Swiss watch exports.

The trend of high-end pieces driving the industry persisted, with watches priced more than 500 francs accounting for more than a third of volumes and 95 per cent of value.

Exports of watches priced between 200 francs and 500 francs plunged by 29.2 per cent in value, continuing a downturn that began in early 2020.

Likely due in part to the success of Swatch Group's Omega MoonSwatch collaboration, exports of watches priced at under 200 francs rose 5.3 per cent by value, the sixth positive month of the year.

With the exception of Hong Kong, South Korea and Japan, Swiss watch exports in July to most major markets in Asia and Europe increased by double-digit percentages.

Join ST's Telegram channel and get the latest breaking news delivered to you.