News Provisional year end figures indicate a particularly good result for Swiss watch exports in 2007. Their value in December increased by 13.8% compared to December 2006, attaining a level of 1.433 billion francs. These very good monthly figures confirm what had been expected for many months: a record year and growth unrivalled over the last 18 years. At 15.96 billion, watch exports almost exceeded the 16 billion franc mark in 2007, posting a rate of growth of 16.2%.
May was the only month in 2007 not to show a rate of variation in two digits, while January was the only month not to exceed the value of one billion francs in exports. The annual performance therefore is excellent. 2007 broke a series of records, both in terms of monthly values and rates of growth. No particular weaknesses are observable over the last financial year and results for watch exports have systematically exceeded forecasts.
Products
During 2007, the most important contributions in value terms were made by 18-carat gold (+24.9%) and steel (+14.7%), which comfortably retained the largest market share. Most other materials registered an increase, with the exception of the category of other materials which showed a slight decline (-1.7%). In terms of the number of watches exported, steel generated a significant increase (+9.9%). The category of other materials followed the opposite trend with a decline of -7.0%. In total, 25.9 million wristwatches left Switzerland in 2007, more than a million units more than in 2006 (+4.2%).
Timepieces costing more than 3,000 francs (export price) impressed throughout 2007. They registered very high rates of growth and served as a real engine of growth for the industry. Their value increased by 25.3% and the number of pieces by 16.7% compared to 2006. Wristwatches priced below 3,000 francs showed more moderate growth, recording increases of +7.4% by value and +3.7% by volume.
Exports of other products also registered growth. Watch straps and bracelets saw their value increase by 8.0%. Movements, mainly electronic, increased by 21.3%. Dials recorded an increase of 7.4%. Finally, alarms and clocks were on a par with the average at +15.8%.
Markets
During the year 2007, the fifteen main markets showed the following trend (total value in million francs and % variation by comparison with 2006):
| 1. | United States | 2,440.9 | +6.7% | |
| 2. | Hong Kong | 2,433.3 | +25.0% | |
| 3. | Japan | 1,207.4 | -4.7% | |
| 4. | Italy | 1,021.1 | +13.3% | |
| 5. | France | 982.9 | +20.9% | |
| 6. | Germany | 829.3 | +7.9% | |
| 7. | Singapore | 670.0 | +24.3% | |
| 8. | United Kingdom | 658.6 | +11.6% | |
| 9. | China | 577.6 | +43.0% | |
| 10. | United Arab Emirates | 527.6 | +36.6% | |
| 11. | Spain | 523.2 | +10.9% | |
| 12. | Russia | 322.1 | +57.4% | |
| 13. | Taiwan | 275.5 | +7.4% | |
| 14. | Thailand | 237.0 | +16.8% | |
| 15. | Mexico | 205.3 | +27.7% |
December saw a change in the ranking of the main markets, due to marked differences in performance. Hong Kong remained top of the table thanks to an above average upswing, ahead of the United States which registered more moderate progress. France climbed to third place, ahead of Japan, where the downward trend was accentuated. Italy proved less dynamic than France, as did Germany, which lost its place to Singapore. In ninth position, China showed a strong improvement compared to December 2006.
For 2007 as a whole, the ranking of the main markets holds no surprises. The United States ended the year in pole position with satisfactory growth despite a slight slowdown. Hong Kong confirmed its excellent health, while Japan finished the year in the red. Europe’s position was slightly above average with growth of 17.6%. Moving up one place compared to 2006, China came ninth thanks to a strong showing. Russia’s performance proved even more dynamic and saw the country become the twelfth largest market for Swiss watch exports.
January 29, 2008