Tokyo (SCCIJ) – The value of Swiss watch exports has increased significantly in the past year compared to 2017 in spite of a downturn in the Christmas month of December. Calculated in Swiss francs, Swiss watchmakers also exported more to Japan in 2018. The country continued to be their fourth largest export market worldwide after Hong Kong, the U.S. and China and followed by the United Kingdom and Germany. The figures released by the Federation of Swiss Watch Industry FH refer to exports value data and not to sales to end-consumers.
Significant increase
In 2018, Swiss watch exports grew to CHF 21.2 billion, an increase of 6.3% on 2017. Exports to Japan went up by 9.1% to CHF 1.432 billion. Compared to 2016, this was an increase of 6.3% and equaled a total export share of 6.3%. China with 11.7% and Hong Kong with 19.1% impressed with an even higher growth rate, although economic growth of the region slowed.
These results can also be viewed in terms of watch products. In 2018, the number of exported Swiss wrist watches decreased by 2.3% to 19.9 million, but their value increased by 6.1%. At the same time, the number of exported movements grew by 3.7% to 207.5 million and by 8.8% in terms of value. Overall, 2018 was the second year in a row with an increased overall export value.
Developments in December
In December, Swiss watch exports saw their second monthly fall in the year, following the decline in September. The change in December was a negative 2.8%, bringing the total to CHF 1.6 billion.
In terms of the principal materials used, bimetal watches recorded an increase in December, while steel stagnated and precious metals saw a downturn. The total number of items exported fell by around 10% for the third consecutive month. The Other metals and Other materials categories were particularly badly affected.
Watches priced at less than CHF 500 (export price) continued to have a negative impact on overall levels, in line with the previous four months. The reductions were most significant, by both volume and value, for watches priced between CHF 200 and 500. Above CHF 500 francs, export turnover was stable.
Japan peak in the summer
Half of the 30 most important Swiss markets grew in December, but not enough to compensate for the decline in other outlets. Hong Kong (+0.5%) was among the positive performers. Although the pace slowed a little, growth remained high over the year. The United States (+7.9%) accelerated significantly, posting an excellent fourth quarter.
Japan (-1.7%) showed signs of a downturn to CHF 104.1 million, after peaking last summer. Its total share of Swiss watch exports came to 6.4% in December. The drop in sales in China (-10.1%) intensified the slowing of growth observed since the beginning of 2018. Overall, Europe (-5.8%) was significantly down, driven by the decline in France (-11.6%), Italy (-14.6%), Spain (-10.1%) and Austria (-29.0%) in particular.
Text: SCCIJ with material and data of the Federation of Swiss Watch Industry FH; Photo: Pixabay CC0