Swiss Watch Industry Sees Steady Growth

RAPAPORT... Swiss watch exports rose in May, boosted by demand for  high-end wristwatches. Shipments rose 11% to CHF 2.04 billion ($2.09 billion), withwristwatch supply increasing 9% to CHF 1.88 billion ($1.93 billion). Exports of other products, which includesclocks, jumped 62%. Traditional timepieces are making a comeback following adownturn in the market during the 2018 holiday quarter, when sales weresurpassed by those of smart watches, according to a report by NPD Group. "Traditional watches once again captured nearly two-thirdsof industry dollars [in the first quarter]," NPD noted. "[They] are asserting their relevance in a changing market,"added Reginald Brack, watches and luxury analyst with NPD. "[Smartwatches]aren't replacing the value many consumers still place on traditionaltimepieces," he stressed  Nearly all markets saw an increase in May, with theexception of Hong Kong, the Federation of the Swiss Watch Industry reportedlast week. "[Hong Kong] recorded a decline for the second consecutive month...confirmingthe downward trend seen since the start of the year," the federation added. Shipments to China surged 81% to CHF 224.5 million ($230.2million) while those to Hong Kong fell 7% to CHF 272 million ($278.9 million),as Chinese consumers continued to buy domestically. Supply to the US grew 10%to CHF 207.7 million ($213 million), and orders to Japan climbed 40% to CHF152.3 million ($156.2 million). Top-priced watches saw strong growth, a trendthat has continued nearly uninterrupted for more than two years. Timepieces made from precious metal, and bi-metal watches helped boosts results,the federation noted.  "Consumers are focused on more manageable-sized, preciousmetal watches, and the human-powered mechanical options are outperforming theirbattery-powered brethren," Brack explained. "The consumer is becoming bettereducated about the work, craftsmanship and detail involved in creating andmanufacturing a living, breathing mechanical movement." Swiss watches in a store window in Italy. (Shutterstock)