After a decidedly negative 2009, Swiss watch exports returned to a trend of steady growth throughout the first half of 2010. In six months, the sector exported products valued at 7.3 billion francs. It therefore exceeded last year’s level by 19.7%, a difference of more than 1.2 billion francs. These results are comparable to those recorded in 2007.

Following 14 months of decline, January showed the first signs of a revival which turned into double-digit growth from February onwards. The first half-year contained two months with rates of increase in excess of 30% (March and June).

The recovery in watch exports is very evident. While it is the product of a particularly low base of comparison and fails to compensate for the decline in 2009 it does indicate however that the crisis is over, with forecasts for the year 2010 pointing to significant growth.

Products
Exports of wristwatches recorded above-average growth during the first half-year. Their value rose by 20.2% to 6.8 billion francs. In parallel, the number of timepieces exported also showed a clear upturn (+18.5%). In six months, Swiss watch manufacturers exported 11.4 million timepieces, or 1.7 million more than in 2009. There is still some way to go however to make good the shortfall of 4.4 million watches recorded for the whole of last year.

Bimetallic watches were the flagship product in terms of exports during the first half year. Their value rose by 80.6% while in volume terms the increase was 62.1%. The total value was also influenced by steel and 18-carat gold timepieces. The marked increase in volumes was attributable mainly to the category of other materials (+29.7%) and steel (+15.1%).

All price ranges recorded double-digit growth between January and June. Wristwatches valued at less than 200 francs (export price) showed a 17.0% increase in the number of units sold. Other segments generally registered increases of 20% or more, both in value and volume terms.

Other products exported by the Swiss watch industry followed the same positive trend as watches. Their value rose by 12.2% to 465.9 million francs. These products accounted for 6.4% of the value of exports in the first half-year.

Markets
In the first half of 2010, the fifteen main markets showed the following trend (total value in million francs and % variation by comparison with the first half of 2009):

Most main markets of the Swiss watch industry showed positive results in the first half of the year. Still the leading destination, Hong Kong continued to set the pace with an increase well above average. The United States started from a lower base and reacted later to the recovery. On that market however the turnaround was clearly visible with a dynamic double-digit performance. The European continent registered moderate growth overall. The very good result in June did however quicken the pace of the recovery on the Old Continent. France, Italy, the United Kingdom and Spain recorded the most modest rates of growth, while Germany clearly has ground to make up and ended the first half-year on a negative note. Asia excluding Japan continued to drive watch industry growth. China made good progress and currently represents the fourth largest market for Swiss watch exports. It is also the country that shows the highest rates of increase.