Swiss Watch Industry Facts & Figures. Update by René Weber, Managing Director Bank Vontobel AG

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A - 83.1 % change in April

Jun 10, 2020

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The impact of COVID-19 / Corona virus on the Swiss Watch exports is dramatic. Figures show a change of - 83.1 % in April! I have again been talking to René Weber, Managing Director of Vontobel Bank AG, in Zürich. René Weber is a renowned Luxury Analyst, with 25+ years of experience René gave me an update about the current export situation of the Swiss Watch Industry and an outlook what we might expect next ... I invite you to watch & listen to our interesting conversation.

 
The industry has been having problems long before the pandemic. The year 2020 only amplified and accelerated the inevitable.

The industry needed to change after a particularly dismal 2016 and 2017 caused by a downturn in key markets, oversupply of watches, a crackdown on "gifting" (bribery) in China, and subdued tourism in some European cities due to terrorism.

Fabienne Lupo, chairwoman and managing director of the Fondation de la Haute Horlogerie (which organises SIHH), says the industry went through "a crisis period". But after a painful restructuring and job losses, she says the "trends are looking quite good".

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Latest data from the Federation of the Swiss Watch Industry (FH) shows that in the 11 months to the end of November the value of exports was up 7.1% on the previous period at 19.54bn Swiss francs (£15.5bn; $19.9bn).

The biggest market, Hong Kong, was up 21% and the next two largest, the US and mainland China, rose 8% and 14% respectively. The increase in exports to the US comes after three years of consecutive declines.

What's more, global shipments in the key luxury watch market - considered to be anything with a factory gate price above 3,000 Swiss francs (CHF) - are up 11%, while those in the sub-500 francs bracket are down about 15%.

On Friday, Cartier-owner Richemont, the world's second largest luxury goods group, posted a 5% rise in quarterly sales, bolstered by double-digit growth in China.
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https://www.bbc.com/news/business-46822929
 
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