Swiss watch exports experienced a 2.2% decline in May 2024, amounting to CHF 2.29 billion. This drop is largely attributed to weak demand from Asia, a trend that has been affecting the Swiss watch industry throughout the year. According to reports from the Federal Office for Customs and Border Security (FOCBS) and the Federation of the Swiss Watch Industry (FH), the overall performance of the Swiss watch sector has been mixed, with growth in some months and setbacks in others.
Impact of Weak Asian Demand
Asia, a key market for Swiss watches, has seen a reduction in orders, which has significantly impacted the industry’s export figures. This trend continued in May, following a similar pattern from earlier in the year. While exports to the United States, the largest market for Swiss watches, remained stable, the decline in demand from Asia led to an overall decrease in exports.
Mixed Performance in 2024
The Swiss watch industry has had a somewhat volatile start to the year. While exports rose by 3% in January and saw a 4.5% increase in April, there were also significant declines. Exports shrank by 16% in March and almost 4% in February. As of May, Swiss watch exports were down by 2.5% compared to the same period last year.
Challenges Facing the Swiss Watch Industry
The mixed performance of Swiss watch exports highlights ongoing challenges within the industry. The weak demand from Asia, especially from key markets such as China, is a primary concern. However, the U.S. market continues to provide some stability, and there are hopes that the industry can recover as demand stabilizes in other regions.
Outlook for the Swiss Watch Industry
Despite the decline in May, the Swiss watch industry remains a leader in luxury timepieces, with high demand for premium watches still prevalent in global markets. The outlook for the remainder of the year will depend on economic conditions in Asia and the continued performance in the U.S. and other markets.
Conclusion
Swiss watch exports have faced challenges in 2024, with weak demand from Asia contributing to a decline in May. The industry is working through mixed results, but the steady performance in the U.S. market offers a glimmer of hope. As the year progresses, the Swiss watch industry will likely continue adapting to shifting global demand trends.
