Double-digit Increases

Each month in 2011 had double-digit growth compared to the year before, expect for June with an increase of 9.2. percent. The steepest increases (above 30 percent) were reported in April and May. However, the final three months were the biggest in history, the association said.  

On the one hand, the watch sales were “penalized” by the strength of the Swiss franc, which placed a strain on margins and selling prices. On the other hand, the sector benefitted from steady demand and a greater presence worldwide, particularly on high-potential markets less affected by exchange rate fluctuations.  

2012 also Growth Year

Nearly all the main markets of the Swiss watch industry showed double-digit increases in 2011, absorbing more than 20 percent of Swiss watch exports by value. Hong Kong, the industry’s largest market grew by more than 28 percent. Japan offered concrete signs of recovery with a growth of 12.6 percent, but from a low base. The United States, the second largest market, increased by 18.4 percent. This “confirmed its gradual recovery", the association said.  

In a partially unfavourable context, prospects remain very good for the Swiss watch industry. The appeal of its high-quality products, growth potential on important markets and investments made by watchmaking firms to ensure their development offer grounds for confidence in the future. In line with this dynamic, the year 2012 is expected to show significant growth and therefore exceed the already very high level of 2011.  

Timepieces in Demand

The number of watches exported also showed a remarkable upturn. In twelve months, 29.8 million watches left Switzerland (+13.8 percent). This is the highest level since 1999 and well above the average figure of 25 million units over the past ten years. In value terms, gold watches recorded the highest increase (+26.5 percent), linked to an upturn in volumes of 24.2 percent.  

All price segments made excellent progress in 2011, denoting interest among consumers for the entire range of Swiss watches. Timepieces costing less than 200 francs (export price) greatly influenced volumes with an increase of 2.2 million units (+11.7 percent). Between 200 and 500 francs, growth was close to 20 percent, both in value and volume terms.  

The 500-3,000 francs range saw its value increase at a slightly lower rate (+14.9 percent) but nevertheless played a significant role in the general upturn. Watches costing more than 3,000 francs recorded the highest rate of growth in value terms (+21.8 percent) generating two-thirds of the overall increase.  

The top 15 markets for the Swiss watch industry (total value in million francs and percentage variation by comparison with 2010):

1.    Hong Kong    4,085.9  /  +28.3 percent