Swiss watch exports plummet due to lower shipments to China and Hong Kong

Monthly Swiss watch exports fell for the second time in three years, driven by lower shipments to China and Hong Kong, as demand for luxury watches cools.

Exports fell 3.8% in value in February to 2.15 billion Swiss francs ($2.4 billion) from a year earlier, the Federation of the Swiss Watch Industry said on Tuesday.

The number of watches shipped from Switzerland also fell, falling 5.2% to 1.2 million units.

Demand for Swiss and luxury watches surged during the pandemic as consumers stayed home and, flush with cash thanks to government stimulus measures, rushed to buy top brands including Rolex and Patek Philippe.

Crippled by supply chain issues after halting production during lockdowns, many Swiss watchmakers were unable to keep up and most brands pushed up prices.

Now a reckoning is underway as wars rage in Ukraine and the Middle East and economic pressures persist. Shipments of watches worth more than 3,000 francs, which account for about 80% of export value, fell 1.8% in February.

Exports to mainland China fell 25% from a year earlier and shipments to Hong Kong fell 19%. The United States remained the main destination for Swiss watches, with exports increasing by 5.5%. Exports to the United Kingdom fell 2.1%, the Federation said.