AWJ - MARKET REPORT
Swiss Watch Exports in 2013 VS 2012
The growth rate of Swiss watch industry exports has slowed since the beginning of the 2013. With export value at 10.2 billion francs, up 0.8% on January-June 2012.
Growth in the Middle East was sustained with United Arab Emirates +19.4% and KSA +13.0 % increase respectively.
Watches priced at more than 3000 francs achieved growth amounting to a few points (+3.0% in value terms).
The average trend therefore remains positive, despite a particularly high comparison base. While January still showed a strong advance in line with 2012, a reduction of around 3% was reported in three months (February, May and June). The base effect and the number of working days often played a significant role in these trends.
So far, 2013 has been in phase with the forecasts. Growth is still the order of the day, but on a more measured basis than in previous years. In other words, the rate of advance is returning to normal, enabling the results to be consolidated at a high level. The forecasts still suggest an increase in value at the year-end.
Products
Growth of watch exports was higher than in the rest of the branch. Their value reached 9.7 billion francs (+1.5%). On the other hand, the trend in the number of pieces was less favourable. In the six months period, the branch exported 13 million timepieces, one million less than in the previous year (-7.4%).
This reduction in volumes was primarily attributable to the category of other materials which reported a fall of 22.7%. The category of other metals (-12.8%) likewise tipped the balance on to the negative side. At the other extreme, the number of steel watches rose (+1.7%). They still represent more than one in two of all timepiece exports. In value terms, the fall in gold and bimetal watches was more than offset by the progression of steel products. The value of the “other metals” category also rose.
The distribution of exports by price categories shows some disparities. Watches costing less than 200 francs (export price) saw a decline in the number of pieces sold by 12.9%, while the 200-500 francs segment maintained its distinctly rising trend. Timepieces priced between 500 and 3000 francs also performed slightly less well than in 2012 with a reduction in value of 3.3%. Watches priced at more than 3000 francs achieved growth amounting to a few points (+3.0% in value terms).
The total value of other products exported by Switzerland was 557.0 million francs, down by 9.6%. Movement exports fell (-17.7% in the number of pieces and -6.7% in value terms). Alarm clocks, table clocks and large clocks accounted for no more than a small share of the overall result: 19.8 million francs (+4.6%).
Markets - Geographical breakdown
In the first half of 2013, the fifteen main markets showed the following trend (total value in million francs and % variation by comparison with 2012):
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1.
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Hong Kong
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1,934.9
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-11.1%
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2.
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USA
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1,085.8
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+1.1%
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3.
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China
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677.7
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-18.7%
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4.
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Germany
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607.9
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+12.9%
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5.
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Italy
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576.6
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+7.6%
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6.
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France
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555.8
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-9.7%
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7.
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Singapore
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525.9
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-2.6%
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8.
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Japan
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523.2
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+3.7%
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9.
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United Arab Emirates *
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482.9
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+19.4%
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10.
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United Kingdom
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433.8
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+28.4%
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11.
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South Korea
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237.7
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+5.6%
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12.
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Taiwan
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218.1
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-4.1%
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13.
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Spain
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199.9
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+19.0%
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14.
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Saudi Arabia
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182.8
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+13.0%
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15.
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Thailand
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132.2
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-2.0%
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* UAE figures are inclusive of the re-export watches to other Arab Countries
Looking at the fifteen foremost markets for the Swiss watchmaking industry, advances outstripped falls in the first half of the year. Almost all the falls were reported by the Far Eastern markets. The leading direct destination, Hong Kong, reported a double digit decline as did China in third place. Between the two, growth in the United States slackened but remained positive.
Overall, Europe proved a very attractive market for the Swiss watch industry, except for France which recorded a substantial fall. Germany and Italy posted significant advances while the United Kingdom and Spain reported very strong growth. In Asia, Singapore lost a few points, as did Taiwan and Thailand. Growth in the Middle East was sustained.
Remarks:
* The above details extracted from the recent report of the Federation of the Swiss watch industry.
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