Swiss watch exports experience first downturn since 2009

Witnessing the first downturn in seven years, Swiss watch exports reached 21.5 billion Swiss francs (21.1 billion U.S. dollars) last year, down 3.3 percent compared to 2014, the Federation of the Swiss Watch Industry reported Tuesday.

The figures reflect the tough environment experienced by the market as exports dropped from 3.2 percent in 2015's first quarter to minus 7.3 percent by the fourth.

The overvaluation of the Swiss franc, readjustments in Hong Kong, economic slowdown in China together with tensions in the Middle East, a weak Russian rouble, and terrorism all contributed to these negative trends, the Swiss watch federation said.

Generating 20.2 billion Swiss francs last year, watches accounted for close to 95 percent of all exports with a total of 28.1 million timepieces exported, 460,000 fewer than in 2014.

Half of Swiss watch exports by value reached Asia (down 9.1 percent), while the value of exports to Europe which accounts for one third of sales increased by 6.1 percent compared to two years ago.

The value of Swiss watch exports to China's Hong Kong fell 22.9 percent last year, with exports to the Chinese mainland and the United States also showing a decrease (down 4.7 percent and 0.8 percent respectively).

The Federation of the Swiss Watch Industry indicated that watch exports for 2016 would at best reach last year's results though visibility is poor. Endit