Switzerland: watch exports see slight decline in first half

Geneva - Swiss watch exports fell by 0.7 percent in the first half to 12.8 billion Swiss francs (15.76 billion dollars), amid a downturn in the US and Chinese markets, according to statistics published on Tuesday by the Swiss watch federation.

In June, Swiss watch exports grew by 11.2 percent to nearly 2.4 billion francs, driven by the US (+12.7 percent), Hong Kong (+6.9 percent) and the United Arab Emirates (+20.4 percent). However, they saw a sharp decline of 16.5 percent in China.

In the first half, the US and Chinese markets experienced a decline of 14.8 percent and 5 percent respectively. Growth was maintained at 1.6 percent in the United Arab Emirates, despite the crisis in the Middle East, according to figures from the Federation of the Swiss Watch Industry.

After reaching record highs in 2023, the Swiss watch industry has faced two more challenging years. This is due to a drop in demand from China since 2024, compounded by the introduction of customs duties in the US in 2025.

Watch exports are a key indicator closely monitored by financial analysts to gauge short-term trends in the luxury sector. The impact of US customs duties last year, however, complicates comparisons.

Washington's announcements in early April 2025 caused panic in the sector. Watchmakers rushed to build up stock in the US before the new customs duties came into effect.

Watch exports to the US therefore surged last year by nearly 145 percent in April and 45 percent in July, before plummeting from August onwards when the customs duties were applied. Since last April, some analysts have been recalculating the watch federation's statistics, excluding exports to the US, to better understand the emerging trends.

At the end of June, consulting firm Bain & Company stated that it expected the luxury goods market to stabilise in 2026, following last year's turbulence.

It does, however, expect a “three-speed” market evolution. The US is seeing a rise in luxury spending, while China is showing signs of a gradual recovery. Europe appears to be the weakest link due to uncertainties surrounding tourist spending, a significant source of revenue for luxury sales.