“Swiss watch sales are expected to fall by around 25 per cent in 2020.”
The Swiss watch industry has suffered greatly from the outbreak. Swiss watch companies are having their worst year in the modern history of watchmaking, according to bloomberg.
Swiss watch exports plunged 81.3 percent to an “extremely low level” of 328.8 million Swiss francs in April as shops and factories remained closed due to the outbreak, the Swiss watch federation said on May 26.
However, the Swiss watch industry federation also said the April export data reflected a special situation, rather than an abnormal supply and demand trend. In march, Swiss watch exports fell 21.9 percent from a year earlier to 1.4 billion francs, even as the Swiss watch federation warned of further deterioration in April.
The Chinese market is an exception. Exports of Swiss watches to China rose 10.5 per cent in March from a year earlier. Exports of Swiss watches to China fell only 16.1 per cent in April, compared with a decline of 70-85 per cent in most markets. In addition, Swiss watch exports to China accounted for a third of total exports in April.
Specifically, the export value of watches in all price segments has dropped by 70% to 85%, among which the high-priced watches performed relatively well, while the low-priced watches were challenged by the Apple Watch. Exports of watches made of different materials fell by 75-90 per cent, with steel and gold being the most significant.
In the short term, the Swiss watch industry still shows no signs of improving. In a note to clients, citigroup senior analyst Thomas Chauvet said the overall industry trend is likely to recover significantly in the second half of the year.
Swiss watch sales are expected to fall by about 25 percent in 2020, according to a new report released in May by Swiss investment bank Vontobel. Fewer than 16 million watches will be sold in 2020, compared with about 20.6 million sold in 2019, said Oliver Muller, a watch industry analyst in Geneva.
Photo credit: SHUTTERSTOCK
Johann Rupert, chairman and CEO of richemont, which owns watch and jewelry brands such as Cartier, comte, jega and van cleef & arpels, warned on May 15 that the severe economic impact caused by the outbreak could last for three years.
In fact, watch brands from LVMH group, kering group, richemont group and Swatch group need not worry too much. It is the hundreds of independent watchmakers and watch accessory suppliers in Switzerland that are in a more precarious position.
Swiss watchmakers are most worried by the uncertainty surrounding luxury goods in the wake of the outbreak. Maximilian Busser, founder and creative director of MB&F, a geneva-based watch brand, told the New York times that he does not think buying a watch is a priority for people emerging from the outbreak.
So far this year, many changes have taken place in the watch industry.
Photo: Baselworld
On April 14, rolex, patek philippe, chanel, chopard and di rudder five watch brands announced to quit Baselworld, the Baselworld Baselworld, and to cooperate with the Swiss advanced watchmaking foundation, will be in April 2021 to hold a new watch exhibition. The covid-19 outbreak was only the trigger for brands to leave Basel, but the main reason was the disagreement with the organizers. Some 1,500 exhibitors have left Basel in the past decade.
The off-line display of Watches & Wonders, a luxury watch show in Geneva, was cancelled, and Swiss watchmaking fund unveiled a digital platform on the afternoon of April 25 to move the display online.
In the special period, more and more watch brands have strengthened digital marketing. For example, BREITLING BREITLING launched the first online new product release, while IWC international watch released the “TIME WELL SHARED” project on March 30, allowing brand ambassadors and employees to share their experiences online.
