The Swiss watch industry saw a significant rebound in April 2024, with exports rising by 4.5% to reach 2.1 billion Swiss francs, according to the Federation of the Swiss Watch Industry. This comes after a notable decline in the previous month. Despite this growth, the year-to-date figures show a cumulative drop of 2.6%. The value of wristwatch exports increased by 4.3% to 2,045.5 million CHF, even as the number of units exported fell by 4.2% to 1.2 million. This trend indicates that higher-income consumers continue to invest in luxury watches, while other income tiers are more hesitant.
High-value watches priced over 3,000 francs saw a 7.8% increase in value, whereas those in the 500-3,000 francs range experienced a 10% decline. Watches priced below 500 francs remained relatively stable, with a slight decrease of 1.2%. The export performance varied across different markets, with the USA seeing an 11.6% increase to 338.7 million CHF, Japan growing by 13.6% to 172.1 million CHF, and Singapore up by 12.5% to 145.5 million CHF. Meanwhile, exports to China fell by 7.5% to 187.2 million CHF, and Hong Kong remained stable with a 0.2% increase to 169.7 million CHF.
The stabilization in exports is a positive sign for the industry, which has struggled to attract new buyers since demand peaked in March 2022. Factors such as reduced disposable income, steady price increases due to inflation, and the strong Swiss franc have impacted luxury timepiece purchases. However, the increased demand for high-value watches is encouraging for sellers. Concerns that Swiss watchmakers would increase supply amidst falling demand are diminishing, with a more conservative sales approach being deemed responsible as the industry emerges from volatility.
Secondary market values for luxury watches are also showing signs of recovery. The WatchCharts Overall Market Index, tracking prices of 60 luxury secondhand watches, rose by 0.1% in May after declines in the year's first four months. Watch enthusiasts are closely monitoring the industry's progress, with the next report scheduled for release on June 20th.
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