News Swiss watch exports had even more pleasant surprises in store in December. Already showing a very favourable trend in the preceding months, they increased significantly in the final month of the year to register a total value of 1,203.7 million francs, an increase of 23.1% compared to December 2004. This considerable monthly increase took the result for the year as a whole to 12.3 billion francs. The year 2005 thus clearly established a new record by exceeding the 12 billion franc mark for the first time and surpassing by 10.9% the already high level of 2004.
Outstripping forecasts made during the past year, Swiss watchmaking confirmed its excellent health by setting the bar very high. The rate of variation over twelve months fluctuated very little in 2005, holding steady at around +10%. The trend therefore has solid foundations, and this is true of all continents. Propelled forward by the luxury segment, Swiss watchmaking products were thus able to avoid the pitfalls of a less than favourable economic situation, particularly in Europe. Despite the fact that the base of comparison will be very high, the year 2006 augers extremely well. The final result could exceed that of 2005 by as much as 5% or 6%.
Products
In December, exports of finished watches saw their value increase by 24.5%, to 1.1 billion francs. Steel (+23.1%), bimetallic (+64.4%) and 18-carat gold (+13.5%) timepieces were responsible in large part for this increase. The number of exported pieces rose by 130,000 units (+7.4%), due exclusively to steel (+23.3%).
For the year as a whole, the record is more uniform for the different materials used in watch manufacture. The total value recorded a level of 11.4 billion francs, an increase of 12.0%. While 18-carat gold (+17.0%), steel (+10.3%) and bimetallic (+13.3%) pieces contributed the most in terms of value, platinum and aluminium for example registered an increase on a par with the average for other materials. Despite the positive result achieved by steel timepieces (+230,000 units), total volumes failed to buck the long-term trend and declined by 840,000 pieces (-3.3%) over twelve months.
Aside from watches, other watchmaking products exported by Switzerland also recorded positive results. Movements saw their value increase by 4.9%, to 142.8 million francs. Larger watch industry articles (clocks and clock components) fared slightly better than average with +11.0%, at 76.1 million. Exports of cases and replacement parts declined however by 13.2% and 3.7% respectively.
Markets
During the year 2005, the fifteen main markets showed the following trend (total value in million francs and % variation by comparison with 2004):
| 1. | USA | 2,147.7 | +14.5% | |
| 2. | Hong Kong | 1,768.3 | +7.7% | |
| 3. | Japan | 1,145.1 | +15.7% | |
| 4. | Italy | 842.1 | +8.4% | |
| 5. | France | 660.3 | +8.1% | |
| 6. | Germany | 632.2 | +11.9% | |
| 7. | United Kingdom | 578.8 | +4.8% | |
| 8. | Singapore | 480.0 | +9.3% | |
| 9. | Spain | 407.9 | +7.5% | |
| 10. | China | 351.3 | +25.7% | |
| 11. | United Arab Emirates | 346.7 | +14.8% | |
| 12. | Taiwan | 251.7 | +22.0% | |
| 13. | Russia | 194.2 | +11.1% | |
| 14. | Thailand | 189.6 | -2.5% | |
| 15. | Saudi Arabia | 177.8 | +7.0% |
The leading ten markets for the Swiss watch industry registered two-digit growth in December, indeed the figure was greater than 50% for Singapore and China. Over the year as a whole, the United States achieved a remarkable performance, despite a very unfavourable base effect. Hong Kong slowed its pace, while Japan continued its forward momentum.
Europe (4.1 billion, +8.1%) ended the year with a very satisfactory record. Its main markets, namely Italy, France, Germany, the United Kingdom and Spain, performed well for Swiss watch manufacturers.
China moved confidently into tenth place by achieving one of the highest rates of growth. Russia, also a promising market, recorded a slower rate of growth. Although smaller, Australia, Mexico, Austria, Turkey and South Korea are situated above the average.
February 02, 2006