Official website of the Swiss watch industry

Overall, 2013 was a good year for the Swiss watch industry. Exports attained a record level equivalent to 21.8 billion francs. This total exceeds by 400 million francs the value recorded in 2012 and corresponds to an increase of 1.9%.

Expected to be a year of consolidation at a high level, 2013 lived up to its promise. While the annualised variation has clearly slowed since the end of 2012, falling from +11.0% to +1.9%, it remained positive nonetheless throughout the year. True to forecasts, the second half-year (+3.0%) proved better than the first (+0.7%). The slowdown in growth was mainly observed in the first half of the year, which registered three months of negative figures. The July-December period showed regular gains, allowing the annualised variation to stabilise at its present level.

On the strength of this solid base, watch exports should continue to grow in 2014. Initial estimates indicate a higher rate of growth than in 2013 to which all regions will contribute, even if the rate of growth is likely to be more moderate in the Far East.

Products
Watches accounted for nearly 95% of the total value of exports in 2013. They recorded growth of 2.0%, to 20.6 billion francs. In volume terms, Switzerland exported 28.1 million timepieces. This represents a decline of just over one million units (-3.6%) compared to 2012. The main materials contributing to these trends were steel (+4.9% by value) and the category of other metals (+15.7%), while precious metals remained stable (-0.3%). In volume terms, the categories of other materials (-8.4%) and other metals (-11.7%) weakened the overall result. The increase in steel watches (+1.0%) by no means sufficed to offset this downturn.

Results were mixed according to price segments. Watches costing less than 200 francs (export price) saw their volumes fall 8.5%, to 18.2 million units. The 200-500 francs category stood out with very considerable increases throughout the year, both in volume terms (+14.2%) and by value (+12.7%). Above 500 francs, variations were less marked. The value of timepieces between 500 and 3,000 francs fell slightly (-1.4%) while volumes remained stable (+0.2%). Timepieces in excess of 3,000 francs made a significant contribution to the increase in total value, with growth of 2.8%.

Markets
During the year 2013, the fifteen main markets showed the following trend (total value in million francs and % variation by comparison with 2012):

The growth in watch exports was attributable mainly to Europe, particularly in the first half of the year. Asia recorded a negative start to the year, but became a driving force from the summer. The American continent registered moderate but very uniform growth.

Most of the Swiss watch industry’s 15 main export markets registered gains. An exception was Hong Kong, which recorded negative results for two-thirds of the year and ended the year with a decline of 5.6%. The United States saw their rate of growth slow, and subsequently stabilise in the second part of the year, in line with the global average. After a lacklustre 2012, China recorded the worst result across the board (-12.5%). It posted some significant downturns, particularly in the first half-year.

In Europe, several markets played an important role for Swiss watch exports. Germany continued to set the pace on the Old Continent, with a pronounced increase (+9.0%). Italy also contributed to the upturn, albeit more modestly (+4.6%). France, where the situation deteriorated sharply in the spring and summer, ended the year on a very low note (-9.6%). In ninth position, the United Kingdom registered one of the highest year-on-year increases (+18.2%) and experienced a slowdown only in the fourth quarter.

Among the other Asian markets, Japan and Thailand registered an above average performance, Singapore and Taiwan showed little if any variation, and the Middle East recorded a two-digit increase (+10.7%).


Slight resurgence of growth
The year 2013 ended with a slight resurgence of growth in watch exports. The month of December recorded a level of 1.8 billion francs, an increase of 3.8% compared to December 2012. The annual result showed a figure of 21.8 billion francs, exceeding by 1.9% the performance achieved in 2012.

Among the main watch materials, gold and steel saw their value increase across much of the sector. Bimetallic watches however registered a slight decline, albeit largely offset by other materials. The increase in the number of timepieces exported in December was attributable solely to the category of other materials.

Different price segments grew at a uniform rate during the last month of the year 2013. The four customary price ranges registered increases in value of between 3% and 5%. Below 3,000 francs (export price) the number of watches exported rose 3.5%. Above this level, volumes remained stable (-0.7%, i.e. a variation of less than 1,000 timepieces).

Swiss watch exports to Hong Kong, in decline for two thirds of the year, ended the year with a modest downturn and continued their gradual recovery. China, the third largest market, also lost ground for much of 2013 but recorded a sharp upturn in December, thanks in particular to a very favourable base effect. The United States meanwhile maintained its moderate growth rate. In Europe, the month of December was not representative of trends observed over the past year. France for example registered growth, while Germany and Italy failed to match their levels of December 2012. Among the key results, Japan bounced back strongly and Singapore remained on a par with the global average.

February 06, 2014