Middle East maintains its position at No. 3 in Swiss Watch Exports world market after Hong Kong & USA and again China is trailing at No. 4, the Middle East Markets net exports amounting to 2,063.40 million Swiss Francs.
When compared with the total imports in Swiss Watch market, the Middle East represents an increase of 54% over the Chinese imports of the Swiss Watches.
The Imports of Swiss Watches in the Middle East markets was again led by UAE, Saudi Arabia, Qatar, Kuwait, Bahrain, Lebanon, Jordan, Oman and Egypt as per the breakdown below.
• These figures do not include the purchases of the Middle East consumers from various European capital/cities such as Paris, Milan, Geneva & London.
• These figures do not include the hand carry watches that are brought to the Middle East markets by watch brand dealers.
The Exports of the Swiss Watches was higher in the MiddleEastern countries like KSA with 11.2%, Qatar with 5.4% and Kuwait with 1.1%increase over the 2014 exports for the same period. However UAE showed adecline of (6.7%) whereas Bahrain also had a significant decline of (10.9%)over the 2014 Swiss Watch exports figures.
A comparative study of top 5 Middle East countries exports for the year 2015 /2014 as below.
In Conclusion
The Middle East is well positioned amongst the emerging-market countries as the fastest growing market for importing high end Swiss Watches ahead of China since 2013.
In spite of the challenges facing this industry, the rising incomes & growing prosperity. The Middle East continues to offer substantial growth opportunities for the luxury watch industry. The following factors also influence the growth of imports of Swiss Watches in the Middle East;
1) The Swiss watches are the most highly favored Luxury items among the Middle East consumers & corporate buyers.
2) Despite the drop in the purchases of Swiss Watches by tourists such as the Russians and the Chinese, the imports of the Swiss Watches has increased.
3) The other important attractions for these Luxury Watches are the low custom tariff imposed in the region making these items affordable to the end consumer & overseas visitors.
4) A strong driver which is worth mentioning is the fact that the Luxury Watches have long been established as a favored gift for government officials in the Middle East. In some countries this corporate gift selection would tap 60-70 % of the total sales of a single brand.
5) Watches are becoming the popular wedding gift next to jewellery.
6) According to a recent study, there is a trend of shopping addiction whereby 74% percent will make a purchase even though they have not planned.
7) Another new feature in the Middle East which helps in promoting Swiss Watch Exports is the introduction of watch collectors meets and exhibitions like the Salon des Grandes Complications (SDGC), an annual B2C exhibition designed to provide the fine watch making sector and the independent watchmakers with a unique opportunity to meet the Middle East watch collectors, connoisseurs, and the high-net-worth Individuals in the UAE and the region at large, this enables to promote specifically the Swiss Watches in the region
On the other hand, Swiss watch companies are required to improve their level of services in the Middle East and invest in a more serious and long term approach to sustain and grow their exports to this oil rich region.
Note to readers:
Data provided by Federation of Swiss Watch Industry FH
Cautionary & Acknowledgment:
All the figures released by FH refer to exports data and not to sales to end-consumers. Differences between these two types of data may therefore exist. These data must be regarded as consolidated figures gathering export results from all Swiss watch companies. They obviously cannot reflect the individual results of one particular company or group of companies, knowing that business activity may greatly vary from one to the other.