Swiss Watch Exports: Japan Surges, China Plunges
August 22, 24
(IDEX Online) - Exports of Swiss watches showed some signs of recovery in July, as Japan overtook China as the world's second biggest consumer after the US.
Total foreign sales were up 1.6 per cent year-on-year, according to new figures from the Federation of the Swiss Watch Industry Exports (FHS), compared to a 7.2 per cent fall in June.
But the most dramatic changes were a surge in Japanese sales - up by 25.6 per cent to $219m - combined with a 32.8 per cent plunge in Chinese sales - down 32.8 per cent to $205m.
A weak yen in Japan has driven tourism to record levels - 3.1m visitors in March 2024 alone - while China's recovery from Covid lockdowns has been far slower than expected.
In the US, Swiss watch sales increased by 11.3 per cent to $447m. Hong Kong was down 19.1 per cent to $172m.
Factories producing tools, machinery and components for the Swiss watchmaking industry have put staff on short-time working as global demand weakens.
Big manufacturers - such as Rolex, Patek Philippe, Audemars Piguet and Richard Mille - say they'll cut production capacity in the short term but will hold on to highly-trained staff.