Share

Swiss watch exports have worst year since 2008

Zurich - Swiss watch exports fell 9.9% in 2016, the biggest drop in seven years, as high-end timepieces went unsold on retailers’ shelves in Hong Kong, the industry’s largest market.

Exports declined to 19.4bn francs ($19.4bn) in December, the Federation of the Swiss Watch Industry said.

The annual decline is the worst performance since exports fell 22% in 2009 in the wake of the bankruptcy of Lehman Brothers and the subprime mortgage crisis.

The boom years, when exports doubled during the early 2000s, are long gone.

The industry is retrenching following the Chinese government’s four-year campaign against bribery, improper gift-giving and extravagance, and the Hong Kong market has been cut in half in the past four years.

Richemont spent more than €200m buying back unsold watches last year, and it’s cut about 200 jobs in watchmaking at Cartier, Vacheron Constantin and Piaget.

The watch federation said it expects exports to stabilise in 2017 as initial signs of a rebound emerge.

Richemont, which makes watches under a dozen brands, has reported a return to growth in sales of watches at its own stores in the final three months of 2016.

China rebounded in the second half, with exports rising 9.1%, according to the trade group.
 
The total number of watches exported in 2016 dropped to 25.4 million, also the lowest since 2009.

Read Fin24's top stories trending on Twitter:

We live in a world where facts and fiction get blurred
Who we choose to trust can have a profound impact on our lives. Join thousands of devoted South Africans who look to News24 to bring them news they can trust every day. As we celebrate 25 years, become a News24 subscriber as we strive to keep you informed, inspired and empowered.
Join News24 today
heading
description
username
Show Comments ()
Rand - Dollar
19.00
-0.5%
Rand - Pound
24.00
-0.5%
Rand - Euro
20.53
-0.3%
Rand - Aus dollar
12.36
-0.1%
Rand - Yen
0.13
-0.5%
Platinum
903.65
+0.8%
Palladium
1,016.75
+1.5%
Gold
2,210.49
+0.7%
Silver
24.61
-0.1%
Brent Crude
86.09
-0.2%
Top 40
68,260
+0.9%
All Share
74,450
+0.7%
Resource 10
57,117
+2.6%
Industrial 25
103,835
+0.6%
Financial 15
16,488
-0.2%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Editorial feedback and complaints

Contact the public editor with feedback for our journalists, complaints, queries or suggestions about articles on News24.

LEARN MORE
Government tenders

Find public sector tender opportunities in South Africa here.

Government tenders
This portal provides access to information on all tenders made by all public sector organisations in all spheres of government.
Browse tenders