PARIS – The downturn for Swiss watchmakers intensified in December, based on figures revealed Thursday by the Federation of the Swiss Watch Trade, ending a troublesome yr for the section, largely as a result of fall in demand in China and Hong Kong.
Gross sales of Swiss timepieces in December fell 5.4 % year-on-year to 2 billion Swiss francs. Annual exports totaled 25.9 billion Swiss francs, a 2.8 % drop in contrast with 2023.
“It follows three years of regular development and suggests an financial slowdown in demand for luxurious private gadgets, notably amongst so-called aspirational clients,” the federation acknowledged.
“Watchmaking corporations have already shared their issues for 2025,” it mentioned. “Any restoration out there will rely largely on the outlook in China, the place uncertainty stays excessive. There may be at the moment nothing to counsel a turnaround in 2025, though the decline must be much less marked. Swiss watch exports are subsequently more likely to proceed on final yr’s downward pattern, whereas the gaps between completely different actors within the sector will stay very marked.”
Within the closing month of 2024, the 4 greatest markets for Swiss timepieces all noticed decrease demand.
Exports of Swiss timepieces to the U.S. fell 1 % to 345.7 million Swiss francs in December, dropping for the primary time in six months.
China “continued to carry out very poorly,” mentioned the group, with exports down 19 % to 151.2 million Swiss francs. It fell to 3rd place on the checklist of main markets for Swiss timepieces after Hong Kong, which noticed a lesser decline of 6.4 % in December.
Exports to Japan had been additionally down, by 12.7 %, hit by powerful comps. Exports to the United Arab Emirates had been roughly flat, whereas the U.Ok. was a shiny spot, with commerce up 5.8 %.
Within the closing month of 2024, exports of watches between 200 and 500 Swiss francs had been the toughest hit, with a drop of 13.2 %. These retailing for underneath 200 francs fell 5.9 % and people above 3,000 francs dipped 5.3 %. Timepieces priced between 500 and three,000 francs did higher, falling by 1.8 %.
Valuable metallic watches, the most important section, fell 3.4 % in to 796.3 million Swiss francs, and had been roughly flat in quantity. Metal watches, the second-largest, gained 1.2 % in quantity however dropped 5.9 % in worth to 635.4 million Swiss francs. Gold-and-steel watches with gross sales of 305.7 million fell 10.3 % in worth and 16 % in unit phrases.
Wanting on the full-year image, the variety of wristwatches exported was traditionally low, at 15.3 million, a drop of 9.4 % year-on-year. For the yr as an entire, exports to the U.S. elevated 5 %.
“America once more strengthened its place because the sector’s main market after 4 years of regular development,” the federation mentioned. “The outlook there stays favorable.”
Exports to Japan had been up 7.8 %, and South Korea, Spain and Mexico additionally did effectively on an annual foundation. Annual exports to China dropped 25.8 % and people to Hong Kong fell 18.7 % year-on-year.
For market gamers which have already reported their 2024 numbers, outcomes range. For the three months to December, Richemont mentioned its specialist watchmaking division gross sales grew throughout areas excluding Asia-Pacific, with double-digit will increase within the Americas, and Center East and Africa areas serving to stem gross sales declines to eight %, from 16 % within the six months to September.
Moët Hennessy Louis Vuitton LVMH mentioned gross sales for its watches and jewellery division grew 3 % within the final three months of the yr, however they had been down 3 % on a reported foundation for 2024 as an entire.