Schweizer Uhrenindustrie verzeichnet wachsende Exporte! Krise-welche Krise?

Swiss watch exports in the first half of 2005

(July 21, 2005)

Steady growth still in the frame

Despite a very unfavourable base effect, the value of Swiss watch exports continued to grow in June. Exceeding the one billion franc mark for the third consecutive month, it registered an increase of 0.6%, to 1,030.4 million. The slowdown in the rate of growth is due to a very high basis of comparison, since June 2004 recorded an increase of 26.6% compared to June 2003. For the first half-year as a whole, the value of Swiss watch exports amounted to 5.6 billion francs, or 11.0% more than in January-June 2004. The moving average over twelve months rose by 9.7%.

The Swiss watch industry therefore continues to build on the excellent progress made in 2004, registering high rates of growth and outstripping forecasts. It is recording steady growth despite a difficult economic environment in some markets, particularly in Europe. While prospects for the second half-year are good, a few monthly setbacks are to be expected in view of the high benchmarks set last year, particularly in August.

Products
After six months, exports of finished watches reached a value of 5.1 billion francs, an increase of 12.3% compared to the first half-year of 2004. Gold timepieces (+20.3%) contributed to nearly half this increase. Steel watches (+8.2%) and bimetallic watches (+20.9%) also helped to achieve this good result.

The number of pieces exported did not follow the same trend and fell by 820,000 units, to 11.2 million watches (-6.8%). The variation of the moving average over twelve months was affected by declines registered since February and weakened to -4.7% at the end of the first half-year, mainly on account of lower-priced watches. Steel watches recorded a slight decline (-1.3%) during the same period, however their variation over twelve months remains positive.

Among other watch and clock products exported by Switzerland during the first half of the year, not all followed the same trend. Exports of movements (+0.9%), dials (-1.1%) and bracelets (-1.7%) did not vary greatly in value terms compared to 2004. The figure for finished cases however fell by 17.8%. Large volume articles increased by 9.9%, on average in the sector, thanks in particular to the good performance by alarms and other clocks (+17.8%).

Markets
In the first half of 2005, the fifteen main markets showed the following trend (total value in million francs and % variation by comparison with the first half of 2004):

1. United States 956.2 +14.1%
2. Hong Kong 839.4 +8.9%
3. Japan 503.5 +18.7%
4. Italy 379.6 +11.9%
5. France 295.8 +4.0%
6. Germany 279.7 +13.4%
7. United Kingdom 271.3 +11.2%
8. Singapore 222.3 +5.7%
9. Spain 175.5 +5.1%
10. United Arab Emirates 174.5 +22.9%
11. China 173.9 +35.1%
12. Taiwan 107.8 +12.9%
13. Saudi Arabia 86.2 +8.0%
14. Thailand 84.5 -14.9%
15. Russia 74.5 -6.2%

Influenced by the base effect, the United States (162.6 million, -2.3%) and Hong Kong (154.0 million, -2.2%) lost some ground in June. However, their growth compared to June 2003 remains very high, with +35.4% and +68.5% respectively. The other main markets recorded increases.

These negative monthly variations had virtually no effect on results for the first half-year, during which the Swiss watch industry’s thirteen largest markets showed a positive trend. On the American continent, the United States continued to forge ahead and showed no apparent signs of weakness.

Asia is following the same trend. Its main markets of Hong Kong, Japan, Singapore, the United Arab Emirates, China, Taiwan and Saudi Arabia registered pleasing rates of growth, which saw that continent win market share at Europe’s expense.

On the Old Continent, the recovery is appreciable and seems promising. Despite some economic difficulties affecting numerous countries, Swiss watch and clock products remain popular and are enjoying renewed success. The twelve-monthly variation stood at +5.0% at the end of the first half-year.

© Federation of the Swiss Watch Industry FH 1997 - 2005