Swiss watch exports achieved an all-time high last year, soaring to 26.7 billion Swiss francs ($30.9 billion). However, the pace of growth slowed in the second half of the year, dropping from 11.8% in the first half to 3.6%. Economic and geopolitical concerns have led watch buyers to be more cautious in their spending.
Despite the economic challenges, the Swiss watch industry faced, the Federation of the Swiss Watch Industry reported a 7.6% increase in exports in 2023, with volumes rising by 7.2% to 16.9 million units. The US remained the top destination for Swiss watches, accounting for about 16% of total exports, while shipments to China rose by nearly 8% to approximately 10% of exports.
The Swiss franc’s high value is pressuring watchmakers, particularly in the entry-level and mid-range segments. The strong currency is expected to continue impacting the industry in 2024. Luxury watches priced above 3,000 francs contributed significantly to overall value growth, while lower-priced watches, such as Swatch Group AG’s Omega MoonSwatch, led volume increases, making up 83% of the growth.
The Swiss watch industry acknowledges that subcontractors and suppliers anticipate a less positive outlook in the coming year. While the economic situation has had a partial impact on the luxury goods market, it has influenced consumer confidence, prompting several brands to approach their forecasts cautiously.
