2008 A Record Year For Swiss Watchmaking, Followed By Decline

With all factors taken into account, the 2008 year was a good one for the Swiss watch industry.  Monthly growth was high, with the industry exporting an amount of product equivalent to a SFr. 17 billion--a record level that exceeds the 2007 results by a factor of 6.7 percent, representing a value increase of over SFr. 1 billion.  The years from 2004-2008 represent a period of extremely strong growth for Swiss watchmaking, in which the industry has been propelled to a very high level.  

Results late in 2008 reflect the change brought about by the global economic downturn.  Initially, there appeared to be little to no effect upon watch exports, the slight monthly decline from April 2008 onwards notwithstanding.  This changed sharply in September, producing a 7.8% decline in the fourth quarter.  The most precipitous fall (-15.4 percent) occurred in November, prior to a a recovery to -7.6% in December.  2009 begins in the red, continuing the trend seen late in the previous year.

Through 2008, not all segments of watches performed equally.  Generally, timepieces in the (export) price point of between 500 and 3,000 Swiss Francs registered lower than in 2007, while those costing more than 3,000 Swiss Francs showed continued robust demand.  However, by the fourth quarter, only those watches in the SFr. 3,000 and higher category managed to remain firmly in demand and register an increase in value.  The markets with the strongest performance were China and other Asian countries, the United Arab Emirates, and Saudi Arabia.

Source: Federation of the Swiss Watch Industry