Switzerland’s watch industry experienced an “unprecedented crisis” in the first half of this year due to the coronavirus pandemic and a temporary halt in production and sales, the Federation of the Swiss Watch Industry (FH) warned on Tuesday, adding that it expects a market contraction of around 30 percent for 2020.
The sector exported the equivalent of 6.9 billion Swiss francs (7.4 billion U.S. dollars) in the first half of 2020, far from the 10.7 billion posted for the same period last year, representing a year-on-year fall of 35.7 percent, industry data released by the Federation showed. The most severe consequences of the pandemic were felt in the second quarter, which saw watch exports plummet by 61.8 per cent.
China, an exception
The Federation said that the return to normal for Swiss watchmaking will be a medium- or even long-term process. “Watch exports are likely to reflect a market contraction of around 30 percent overall in 2020, with certain marked differences between key players,” the FH said.Switzerland exported 5.5 million timepieces during the first half of the year, compared with just over 10 million last year, a drop of 44.9 percent. All markets fell sharply between the first half.
China was the exception, with a decline of only 14.6 percent, the data showed.” Overall, demand from China is very strong indeed. Chinese consumers are not traveling, and spending their luxury dollars in China. This creates a mechanical boost in sales in China,” Luca Solca, managing director of luxury goods at Sanford C.