Swiss watch industry exports in 2001: a new record

The results for 2001 are still better than the record figure reported in 2000, which was regarded as an exceptional year. Over the twelve month period, Swiss manufacturers exported horological products worth 10.654 billion francs. This 3.5 % increase on 2000 was slightly up on the forecasts made at the end of last summer. However, the Swiss watch industry is not immune to the general economic downturn. The downward trend gathered pace in the closing months of the year. The total value of watch exports in December was down 13.7 %.

The Swiss watch industry is being affected by the economic cycle rather belatedly at a time when the world's major economies seem to have bottomed out. The recovery expected in the second half of 2002 will therefore reach the Swiss watch industry somewhat later. The next six months are likely to remain difficult but watch exports should recover towards the end of the year. We therefore believe that, in the best scenario, results at the end of 2002 will be broadly comparable to those reported in 2001

Products
The number of finished watches exported from Switzerland in 2001 was down by around 3.5 million units, including a fall of some 450,000 in December. Despite this 11.6 % downturn year on year in volume terms, the value of timepiece exports was 3.7 % higher at 9.675 billion francs.

Growth is assured by precious metal watches which achieved substantial values and the strongest growth rates (gold : + 15.2 %; platinum: + 64.0 %). Steel watches account for more than four out of ten pieces and remained stable in sales terms, while the number of units was 7.5 % lower.

Cheaper watches are experiencing greater difficulties and sales are down: for example, - 23.3 % in value terms for aluminium watches. These still accounted for one in five watches at the end of 2000, but one year later the proportion had fallen to one in six.The average price of exported watches confirms this trend with a 17.4 % increase from 312 to 367 francs between 2000 and 2001. This evolution reflects a concentration on upmarket products on the one hand and an increase in the real price on the other.

Turning to the other products exported by Swiss manufacturers, the number of movements is down by nearly 14%, but their value has risen by 2.8 % to 129.6 million francs. Exports of wristlets have shown a strong performance with a value increase of 15.1 %, equivalent to sales of 188.0 million francs. Large volume items (alarm clocks, domestic and other clocks) also achieved satisfactory growth with + 67.6 % in the number of pieces and + 29.5 % in value.

Markets
In the year 2001, the trend on the 15 principal markets was a follows (total value in million francs and % change on 2000):

1. United States1,585.7- 14.1 % 2. Hong Kong1,508.1+ 6.0 %3. Japan1,052.3+ 13.3 %4. Italy840.0- 4.9 %5. Germany 783.2+ 9.4 %6. France720.3+ 10.3 %7. Great Britain509.8+ 18.7 %8. Singapore438.4+ 3.8 %9. Spain342.3+ 3.9 %10. Taiwan195.6+ 5.3 %11. United ArabEmirates189.2+ 4.8 %12. Thailand177.6- 7.8 %13. Saudi Arabia172.8+ 21.7 %14. Austria126.5+ 16.4 %15. Netherlands116.5+ 1.7 %





In the last two months of 2001, Hong Kong held first place in the ranking, but the United States nevertheless remains the leading market for the Swiss watchmaking industry. However, the American market is adversely affected by the economic situation and has been falling since the month of March. For the year 2001 as a whole, this fall in value represents - 14.1 %.

On the Asian continent, the growth proved highly satisfactory. Only Thailand is down 7.8 % on 2000, but the trend still shows an increase of + 24.5 % in relation to 1999.

In terms of watch exports, Europe has been less affected by the economic downturn. Significant growth was reported on the important German, French and British markets.

Source: Swiss Watch Federation, www.fhs.ch
February 2002