Swiss watchmaking crossed a new frontier in 1999. For the first time, total export value broke the 9-billion-franc mark, with 9.003 thousand million francs. A year-on-year increase of 6.9%, this figure was mainly due to the extraordinary growth recorded between September and December, when the watch industry benefited from sustained consumption in the United States, a revival in both Asia and the Middle East, a weak Swiss franc against the American dollar, and the millennium effect.

This record in turnover, however, was offset by two negative aspects: a drop in export volume and the fact that certain companies did not share in the growth.

Products

Swiss watchmakers exported 31.3 million finished watches in 1999, around 900,000 fewer or 2.9% less than 1998. The value of these products was 8.2 thousand million francs (+7.9%). White metal watches sold particularly well, in both the upmarket segment (platinum, silver, steel) and the lower-end segment (steel, aluminium). Consumer demand for steel remained constant, with the sale of more than 11 million steel watches (5.7% more than in 1998) for an increased value of 19.1% to 3.36 thousand million francs.

Yellow metal had a much bumpier ride. The drop in demand affected both bimetallic and plated models, the latter falling by 31.3% in volume and 34.4% in value. Thanks to the popularity of white gold and a meteoric last quarter, however, gold finished the year with a volume of 492,000 units (+9,000 or +1.9% compared to 1998), for a value of 2.11 thousand million francs (+2.9%).

Technologically, 1999 showed a slight change in the ratio between quartz and mechanical watches; the latter still accounted for around 8% of the total volume exported, but their value rose from 44.3% to 47.2%.

As far as other products are concerned, Switzerland exported 5.4 million movements last year, 9.8% down on 1998, for a reduced value of 100.1 million francs (-8.8%). This sector continues to suffer as a result of lively competition from Asian manufacturers. In the exterior parts sector, total export value declined by 1.4%. Clocks finally managed to reverse the downward trend of the past few years.

The markets

Having expanded by 14.2% in 1998, the American market grew once again in 1999 by a remarkable 13.7%, a rise of close to 30.0% over two years. In Asia, renewed business confidence was particularly apparent in Hong Kong, Japan and Singapore. Thailand and Taiwan levelled out. The improving consumer climate in the region led to a strong rise in exports to South Korea, the Philippines and Indonesia.

The economic improvement in Asia had positive repercussions on the global demand for oil. With revenue rising, consumers in the Middle East began to spend again. Their end-of-year purchases compensated for a very restrained first quarter.

In Europe, most markets also showed an upward trend, despite faltering a bit at the start of the year, with France leading the way (+5.0%). Only Germany and Austria recorded poorer figures than 1998.

Here is a summary of Switzerland's top fifteen watch export markets in 1999 (total value in millions of Swiss francs and the year-on-year variation in percentages):

With the world economic climate looking healthy, prospects for the next few months are good. Most Swiss watch companies expect business to remain at its present level.