Swiss watch exports declined 22.3 percent in 2009, with the U.S. market a key contributor to the drop, but modest improvements at the end of the year helped soften the blow, according to the latest export figures. This was reported by www.nationaljewelernetwork.com.
The 2009 year as a whole recorded Swiss watch exports of 13.2 billion Swiss francs (about $12.4 billion under current exchange rates), a decline of 3.8 billion Swiss francs (nearly $3.6 billion) from the 2008 year, with the sector having been hit especially hard by a general fall in demand linked to the worldwide economic crisis, a report by the Federation of the Swiss Watch Industry FH said.
Exports in November and December reflected single-digit percentage declines as compared to the earlier months' double-digit drops, according to the Swiss watch organization's data. Declines of 20 percent to 33 percent held steady for much of 2009, until October, when the year-end recovery appeared to come into effect.
Among finished watch products exported by Switzerland, alarm clocks and clocks, in general, were among the few sectors to record growth, increasing 6.2 percent over 2008, the watch federation said.
The total value of wristwatch exports, which comprise the bulk of the market, fell by 22.3 percent to 12.3 billion Swiss francs (or $11.6 billion) for the year as compared to 2008. Meanwhile, the volume of exports dropped 17 percent to 21.7 million units, with Swiss watch manufacturers exporting 4.4 million fewer timepieces in 2009 as compared to 2008.
Components recorded declines too, including exports of movements, down 8.4 percent; bracelets, down 20.1 percent; cases, down 36 percent; and dials, down 25 percent.
Wristwatches made of all materials registered downturns as well, with steel watches especially responsible for a large part of the decline in volume, and both gold and steel watches contributing to the decline in the overall value of the goods exported, the watch federation said.
In terms of price points, watches priced between 200 and 500 Swiss francs upon export (about $188-$470) performed the best, though the category fell in value by 4.7 percent and in units by 3.9 percent. Wristwatches priced below 200 Swiss francs (about $188) saw their value and volume decline by 17 percent, while watches priced above 500 Swiss francs (about $470) recorded the steepest rates of decline, falling 23.7 percent by value and 25.7 percent by units as compared to 2008.
As for the top recipients of Swiss watch exports, Hong Kong continued to lead, receiving 2.2 billion Swiss francs worth (about $2 billion) of Swiss watches, albeit dropping 19.7 percent as compared to 2008. The United States was second for the year, at 1.47 billion Swiss francs (about $1.38 billion), a decline of 37.9 percent as compared to 2008. Rounding out the top five markets for Swiss watches were France, Italy and Germany, which posted export declines of 14.4 percent, 13.9 percent and 13 percent, respectively, as compared to the previous year.
The watch federation said in its report that market indicators suggest that 2010 should see a turnaround for Swiss watch exports. The prediction is that the turnaround will be modest, however, and will only be felt in the second half of the year.
