Hong Kong Slowdown Hits Swiss Watches

RAPAPORT... Swiss watch exports fell 11% to CHF 1.74 billion ($1.77billion) in June, amid a continued downturn in Hong Kong tourism and protests in the municipality. "Hong Kong's performance slowed significantly. Recent events there undoubtedly played a part," theFederation of the Swiss Watch industry reported last week.  Demonstrators in Hong Kong - the Swiss watch industry'ssecond-largest market - have been protesting an extradition bill proposed by thegovernment in March. Exports to Hong Kong plunged 27% to CHF 198.4 million($202.1 million), in contrast to 39% growth in June 2018. That declineoutweighed a 7% increase in supply to the US to CHF 202.9 million ($206.7million), and a 3% rise to Japan to CHF 135.1 million ($137.6 million).Shipments to China grew 2% to CHF 126.2 million ($128.5 million). There was a decline in all major price categories, with orders ofwatches worth above CHF 3,000 ($3,056) falling 6% by value. Exports oftimepieces between CHF 500 ($509) to CHF 3,000 slipped 20%, while those valuedfrom CHF 200 ($204) to CHF 500 went down 15%. Supply of products priced underCHF 200 plummeted 20%. Similarly, exports slowed for each category based on the materials used to make the watch. Exports of steel watches dropped 15% to CHF 644.1 million ($656.1 million), andshipments of timepieces made from precious metal slid 6% to CHF 584.1 million($595 million). Supply of gold-and-steel watches fell 7% to CHF 282.2 million($287.4 million), while those made from other metals tumbled 17% to CHF 75.6million ($77 million). Image: Swiss watches in a store window. (Shutterstock)