Swiss Watches Face Worrying Time

The number of Swiss watch executives with a pessimistic outlook for the nation’s timepiece industry has doubled since 2015 as exports in the first half slumped to the lowest level in five years.

 

The number of industry leaders who expect the industry to go pear-shaped stands at 82% in the Deloitte Swiss Watch Industry Study 2016.  Some 65% are downbeat about the country’s main export markets for the next 12 months .  Exports of Swiss watches fell in the 6 months to June to $9.8 billion, from $10.5 billion a year earlier.

 

Weaker foreign demand has become the biggest risk for Swiss watch industry executives, overtaking the strength of the franc relative to the U.S. dollar.  Exports to China & Hong Kong have dropped, with August representing the 18th consecutive month of decline.  Anticorruption legislation in China continues to hamper luxury sales, while fewer tourist arrivals in Hong Kong eat into the watch sellers’ revenues in the municipality.

 

BRON: RAPAPORT 28-9-2016