The First Half of Swiss Watch Industry

Federation of the Swiss Watch Industry released the watch sales figures for the first half of 2022. Turkey has moved up one place in the world list.

Last March, Federation of the Swiss Watch Industry (FH) released the watch export figures for 2021 and announced that the Swiss watch industry ended 2021 with highest export numbers of all time. Sharing another report for the first half of 2022, FH announced the Swiss watch industry recorded growth on an export basis in the first half of this year compared to the first half of 2021. So, it seems that the Swiss watch industry’s sales continue to grow in the first six months of this year.

According to the report, this year’s sales figures indicate a growth of nearly 11.9 % compared to the same period of 2021. Swiss watch exports in the first six months were reported at 11.3 billion Swiss franc. Swiss watch exports amounted to 11.9 billion francs. While 70% of this increase stems from mechanical watches made of precious metals or steel, the other categories also contributed to the overall upward trend. Wristwatches account for more than 95 percent of watch exports in terms of value. Watches priced at over 3,000 francs accounted for more than 15 percent of growth, whilst watches priced at between 500 and 3,000 francs account for about 6 percent. On the one hand, the 200-500 francs category suffered a sharp drop.

Holding 49 percent of sales, Asia remains to be the first name in Swiss watch export. Despite the 26.3 percent drop in sales to China and 11.5 percent drop in sales to Hong Kong, the Asian market maintains its place in the Swiss watch industry. The report demonstrated that the Chinese market was significantly disrupted by the anti-Covid measures in April and May. On the one hand, America recorded the strongest growth (+31.0%) and also saw its share increase to 19%. Markets in Europe like UK, Germany and France also showed an even more marked upturn.

Source: Federation of the Swiss Watch Industry

According to Taylan Özgür Dil’s from Hürriyet, watch exports from Switzerland to Turkey increased by 38 percent to 117.5 million dollars. At the end od 2021, Turkey was ranked 22nd in the list of 30 countries with a watch purchase of 180 million dollars. And through at the first half of this year, it increases to 21st place.

The numbers of Swatch Group, Richemont and LVMH also increased last year. Swatch Group reported 7.4 percent growth this year compared to the first half of last year; Richemont reported a 10 percent increase and LVMH Watches and Jewelry group reported a 22 percent increase.

Federation of the Swiss Watch Industry says it expects the watch industry to remain attractive despite challenges such as difficulties in sourcing raw materials, rising energy and transportation costs and a shortage of manpower. 

The data reported by Federation of the Swiss Industry indicates that forecasts for the Swiss watch industry in 2022 remain optimistic, despite difficulties in the supply of raw materials and investments, the rising cost of energy and transportation, the lack of manpower and the strength of the Swiss franc.

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