The Fall Continues as Swiss Watch Exports Drop 22% in March 2020 (and the worst is yet to come)

Following the pattern started in February 2020 , with a decrease of 9.2% of exports, the FHS, the Swiss Watch Federation, just delivered its fare measurements for the long stretch of March 2020, showing significantly more than before the impact of COVID-19 on the business sectors – however remember that these numbers are identified with exports, not to deals to conclusive customers. For the time frame, the Federation reports that exports fell forcefully, diminishing by 21.9%. Unquestionably a horrible circumstance, it appears to be “less dramatic” than what we would have expected… But the most exceedingly awful is yet to come.

The estimation of exports for Swiss Watches is declining forcefully with a reduction revealed near less 22%, despite the fact that, as the FHS states, “the decay was regardless lower than the drop in deals in a portion of the fundamental markets“. Much more critical is the fall in volume, at – 41.3%, which is more agent of the genuine condition of the market. The lower-end sections, particularly the CHF 200-500 territory, are especially affected with – 55% in worth and in volumes. The better quality fragment watches with a fare cost above CHF 3,000, appear to be less affected with only – 10% in volume. Altogether, the quantity of watches traded fell by just about 700,000 in March, creating an uncommon month to month figure of 900,000 units.

More amazing is the breakdown per country, where significant variations are appeared by the FHS. For example, the exports to the US market are up by a noteworthy +21%, where watches estimated at over CHF 3,000 developed emphatically there, foreseeing future delivery challenges. Likewise up is China, at +10% subsequent to falling considerably in February, additionally foreseen before the finish of the emergency. The main decreases are seen in Hong Kong (- 41.3%) and in European business sectors, greatly affected by the Coronavirus. Italy is down 57%, France is down 48% and Germany and the UK are down 33%.

All in all, the circumstance is tense for the Swiss Watch Industry, yet the Swiss Watch Federation is likewise cautioning of the way that “a plausible deterioration” is foreseen in April 2020.

More subtleties at www.fhs.swiss .