PARIS – Might the Swiss watch trade’s woes be over in 2025?
Export of timepieces returned to development in January, in response to figures revealed Thursday by the Federation of the Swiss Watch Trade. They rose 4.1 p.c year-on-year to 1.9 billion Swiss francs, or $2.1 billion at present change charges.
The U.S. continued to steer, with the highest marketplace for Swiss timepieces rising 16.2 p.c.
The polarization of the market continued to be seen in figures by value section, with the luxurious section exhibiting stronger restoration.
“Worth rises, the U.S. and lowest and costliest watches drive sturdy exports,” Jefferies analyst James Grzinic wrote in a buying and selling be aware. “That is pushed by main value rises in each the most affordable and the dearer timepieces, in addition to a robust stock rebuild within the US.”
Gross sales in mainland China “stay very weak,” he added.
The downward flip in demand for Swiss timepieces in Higher China continued because the mainland and Hong Kong confirmed declines of 29.1 p.c and 11.7 p.c respectively.
Japan was a vibrant spot in Asia, with gross sales up 26.2 p.c within the island nation, because the weak yen has hit a low towards the greenback, spurring on excessive income for the nation’s automotive exports and sending the inventory market hovering.
Demonstrating the bifurcation of the market, watches at each the excessive and low finish noticed development, whereas the center misplaced floor.
Watches underneath 200 Swiss francs at export value grew in worth by 0.7 p.c, though the trade physique famous that they “remained at a stage near their 2024 efficiency.”
The mid-range continued to say no in quantity and worth by excessive single-digits.
Excessive-end timepieces, priced over 3,000 Swiss francs at export value, grew 7 p.c in worth and by 0.6 p.c in quantity.
However this may increasingly not sign the top of luxurious woes as a blended image emerged from the breakdown by supplies.
Whereas precious-metal watches and gold-and-steel fashions grew 9.7 and eight.9 p.c in worth respectively, their volumes contracted by 3.6 and 1.5 p.c. In the meantime, metal watches proceed to lose floor in quantity, dipping 2.4 p.c, whereas the variety of items leaving the nation rose by 5 p.c.
Worth development on the excessive finish comes as valuable metals have skyrocketed.
Gold costs hit their all-time excessive on the finish of January at $2,798 per troy ounce, up 7 p.c and surpassing its earlier excessive in October 2024. Merchants have been stockpiling gold, with commodity merchants within the U.S. growing stock 75 p.c for the reason that U.S. election in November, inflicting shortages in different markets.
Different metals together with silver and platinum have additionally seen costs rise, round 2.5 p.c every.
Branded timepieces and exhausting luxurious continued to generate sturdy curiosity from shoppers, persevering with a sample of shoppers in search of marque names. Cartier and Van Cleef & Arpels had been two manufacturers that continued to do nicely with shoppers, Grzinic famous.