The Swiss watch industry had been very successful in 2018; watch sales rose by 6.3 percent in value compared to 2017, the largest annual increase in six years. However, growth mostly happened in the year’s first half (10.6 percent), the second half was much slower (2.3 percent).
Especially the results from December are cause for concern: Exports declined by 5.8 percent in Europe and by 3.2 percent in the Far East. Even in the Chinese market, the best performing market in 2017, December sales declined by 10.1 percent. Only the US market didn’t follow the trend and saw a growth acceleration over the whole year.
According to the Federation of the Swiss Watch Industry, there are several reasons for the slowdown: “Macroeconomic, commercial and political uncertainties influenced developments in the sector, which also had to deal with competition from other luxury goods and connected objects.” In addition, the trade war between the China and the US negatively affected consumer demand. Another reason is, that the second half of 2017 was strong, which leads to tougher financial comparisons.
Outlook for 2019: Due to the slowdown in the second half and the uncertain geopolitical and economic climate, it is expected that exports will still grow, but at a more modest level.
