Swiss watch exports will not return to pre-Covid levels until 2023
Exports of Swiss watches are unlikely to return to pre-coronavirus pandemic levels over the next couple of years according to estimates by the Vontobel private bank.
The forecast is not all doom and gloom though. After taking a hit in 2020, Swiss watch exports should grow by around 18% in 2021, thanks to the dynamism of the market in mainland China.
Expected to reach CHF20 billion (almost $21.5 billion), exports this year should increase sharply in the second quarter, where a jump of more than 50% is anticipated, the report said.
In 2020, Swiss watch exports plummeted by 21.8% to CHF16.98 billion. The closure of factories and shops at the height of the health crisis and the lack of international tourists took a heavy toll on the sector.
Movers and shakers
Rolex, which has experienced a smaller decline in sales than many other watch brands, has become the leading Swiss watch brand with estimated sales of around CHF4.95 billion in 2020. It has a market share of 25%, thus dethroning the Swatch group, which hangs on to 22% of the market, according to calculations by the Zurich-based bank.
The Richemont group, another big player which owns high-end brands like Cartier and Jaeger-LeCoultre, accounts for 17% of market share, while French conglomerate LVMH, which owns Swiss watch brands like Hublot, Bulgari, Tag Heuer and Zenith, enjoys a 7% slice of the pie.
Mainland China became the most important export market for the Swiss watch industry for the first time, overtaking Hong Kong which had held the top spot since 2008.
The Vontobel analysts also point out that entry-level and mid-range timepieces will continue to suffer, particularly because of competition from smartwatches. In addition, the recent strengthening of the dollar and the euro against the Swiss franc will benefit Swiss watch manufacturers.
Protein in abdominal fat could help shape obesity treatment
This content was published on
The study analysed fat cells from different locations in the body, and found that those in the abdomen have unique properties.
North African asylum claims fall after rapid Swiss processing
This content was published on
The accelerated procedure, now out of its test phase, has resulted in a significant drop in applications from North African countries.
This content was published on
The artist's song "The Code" focuses on their journey as a nonbinary individual. It is one of the favourites to win this year's contest.
Swiss climate activists block vehicles near Gotthard tunnel
This content was published on
Around ten climate activists briefly blocked the A2 motorway near the northern entrance of the Gotthard tunnel on Thursday.
Watches belonging to Michael Schumacher up for auction
This content was published on
Schumacher's family is auctioning off eight rare watches from his collection in Geneva. The Christie's auction will take place on Monday.
Joya Marleen and Baschi named best solo acts at Swiss Music Awards
This content was published on
St. Gallen singer Joya Marleen and Baschi from Basel were named artists of the year at the Swiss Music Awards 2024 on Wednesday night.
Embattled Swiss watch industry targets mainland China
This content was published on
In an attempt to make up for a Covid-related loss of income, manufacturers are focusing more on mainland China as well as easing off the bling.
This content was published on
Switzerland’s watchmaking industry is likely to suffer the worst crisis of its history in 2020. But experts are confident it can recover.
You can find an overview of ongoing debates with our journalists here . Please join us!
If you want to start a conversation about a topic raised in this article or want to report factual errors, email us at english@swissinfo.ch.