Data released a couple of weeks ago by the Federation of the Swiss Watch Industry (FH) shows that Swiss watch exports rose by 2.7% in value last year versus 2016. Exports totalled 19.92 billion Swiss francs, which is roughly equivalent to £15.2billion, and this data is based on the value of watches sold by Swiss watch manufacturers to wholesale and retail distributors.
According to the FH, these positive results are largely down to a strong showing in the second half of the year. Up until June 2017, the FH reports that exports were only up by 0.3%, but gained momentum in the second six months, with exports improving by 4.3% when compared to the same period in 2016. In a statement, the FH said that “Asia was the growth driver in 2017”, with the region accounting for around half of all the export sales last year.
The FH also believe that the strong finish in 2017 is likely to continue into this year, saying that “the industry’s dynamic is looking good for the future. Watch industry export growth is likely to be comparable to that seen in 2017.”
It is hard to believe that Britain only just made it onto the list of Switzerland’s Top 10 markets a decade ago, where it ranked at number 10. In fact, it also ranked a lowly number 8 in 2015. However, the UK was the fourth largest market for Swiss watches in the world last year, and experts are suggesting that there is one big reason for the marked improvement.
The UK has essentially turned into a top Swiss-watch buying destination since the June 2016 referendum that resulted in the country deciding to leave the European Union. Since then, the pound has weakened against other major currencies, and this has resulted in shrewd watch buyers, and bargain-hunting tourists, shopping in the UK.
Britain was the only market in the top 10 to post an increase in exports in 2016, and this jumped by a further 7% to £980 million last year. Since the vote to leave the European Union, Britain has leapfrogged over renowned watch hotspots like Japan, Germany and Italy in the top 10.
