Swiss watch exports to China fall 50% in September

Swiss watch exports suffered their steepest drop this year in September, dragged down by a 50% drop in sales to China, the industry federation said on Thursday.

It is the latest sign of weakening demand in the world's second-largest economy, which has hit Europe's luxury sector.

Sales to Hong Kong also fell 34.6% during the month from a year earlier, according to the Swiss Watch Industry Federation.

Swiss watch exports are a closely watched indicator of the overall health of the luxury goods sector.

Across all markets, exports fell 12.4% in September to 2.1 billion francs ($2.5 billion).

Sales also fell 13.9% to Singapore and 19.8% to South Korea.

Sales to other European countries fell by 3.4%, while the only major markets that grew were the United States, by 2.4%, and Japan, by 2.0%.

After reaching an all-time high in 2023, Swiss watch exports fell 2.7% in the first half of this year due to falling Chinese demand as the country faces a housing crisis and rising youth unemployment.

China is a key market for Swiss watches and will account for 10.3% of all exports in 2023.

But that figure understates China's importance given Chinese tourists' purchases during trips to Europe, especially before the Covid pandemic lockdowns.