The downturn in the Swiss watch industry persisted in February, as exports continued to weaken. According to data from the Federation of the Swiss Watch Industry, the month saw an 8.2% drop in value and a 7.7% decline in volume, totaling 1.98 billion Swiss francs in exports.
Global Market Uncertainty Impacts Swiss Watch Exports
The industry has been facing a slowdown in an uncertain economic climate, which has affected its six largest markets and all material categories. Although there was a slight rebound in January, the overall performance for the first two months of 2025 shows a 2.4% decline compared to the same period last year.
U.S. Market Still on Top but Facing Decline
The United States remains the leading market for Swiss watches, but February recorded a 6.7% year-on-year decline, reversing some of the growth seen over the past two years. Consumer confidence in the U.S. has weakened in recent months due to concerns over inflation and economic policy changes, according to the University of Michigan Surveys of Consumers.
Decline in Major Markets, Japan Falls to Sixth Place
The negative trend extended beyond the U.S., impacting key Asian markets. Japan slipped to sixth place following a 19% drop in Swiss watch imports. Meanwhile, Hong Kong and China continued their downward trajectory, declining 12.5% and 25%, respectively.
Impact on Watch Materials and Volume
February’s export decline was felt across different material categories and volumes. The industry exported 102,000 fewer watches than the previous month. The “Other Metals” category saw the most significant contraction, shrinking by nearly 25%, while “Other Materials” saw a slight 0.7% increase in volume.
Conclusion
The Swiss watch industry faces mounting challenges in 2025, with economic uncertainty and shifting consumer confidence weighing on exports. While the U.S. remains the top market, its decline, along with downturns in China, Hong Kong, and Japan, highlights a wider market cooling trend that Swiss watchmakers will need to navigate carefully.
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