New Media

Swiss watch exports up
11.6 pc in
Jan-June '06

Swiss watch exports touched SFr 1,177.0 million in June 2006, an increase of 12 percent over the corresponding month the previous year. Swiss watch exports in the first six months of 2006 grew at a steady rate to fetch a revenue of SFr 6.3 billion, up 11.6 percent (Sfr 650 million) over the same period the previous year.
The variation over the last twelve months has quickened its rate to +11.4 percent.
The first half of 2006 recorded significant monthly variations. The trend over twelve months remains at a high level, with two-digit increases over the last ten months or so. This strong growth was evident in most export markets, in the context of a favourable economic climate. Results were boosted in particular by luxury products, for which rates of growth attained very high levels.

Products
In June, exports of wristwatches recorded a slightly above-average increase, at 1088.0 million francs (+12.5 percent). The number of pieces followed this trend, with an increase of 170,000 units, or 8.8 percent more than in June 2005. All materials contributed to this result, particularly steel (+16.2 percent), which accounted for a significant share of the overall value. In volume terms, "other materials" (+130,000 units) also played their part, as did steel (+120,000 pieces).

Over six months, the number of pieces rose by 0.4 percent. However this small increase of 50,000 timepieces remains very low compared to the decline registered in 2005. It is due essentially to the category of "other materials", which added 270,000 units during the first half-year. 18-carat gold (+5.5 percent) and bimetallic timepieces (+2.1percent) also exceeded their 2005 level, however the main materials including steel (-1.7 percent) and other metals (-8.0 percent) recorded a decline. In value terms, most materials registered growth. This was above average for 18-carat gold watches (+15.6 percent) and platinum timepieces (+23.1 percent).

The most expensive wristwatches stood out clearly from other segments during the first half-year. Timepieces costing more than 3,000 francs (ex-works) saw their value increase by more than 30 percent, while the number of such pieces leapt up by more than 50 percent. Below 3,000 francs, results were down slightly compared to January-June 2005.
Among other products exported by Swiss watch manufacturers during the first half-year, rates of growth were generally below the industry average. At 71.6 million francs, exports of movements rose by 9.7 percent. Cases (24.1 million, +2.6 percent) and bracelets (81.1 million, +2.8 percent) lost ground slightly. Alarms and clocks turned in a very good performance with an increase of 13.6 percent (15.4 million).

Markets
In the first half of 2006, the 15 main markets showed the following trend (total value in million francs and percentage variation by comparison with the first half of 2005):

The main markets caused no great surprises in June. The US reinforced their position, while the slowdown in watch exports to Hong Kong bottomed out. Japan, situated at a higher level, was also stable. In Europe, growth gained pace again to attain 11.7 percent over 12 months, thanks in particular to a very sharp increase to France, after Germany in May.
Over six months, the situation is very satisfactory on virtually all markets. Among the main outlets, the highest rates of growth were achieved in France, Germany and Spain, where they exceeded +20 percent. The United States and Hong Kong however progressed at around half the average rate. In China, occupying eleventh position, growth has been stable for some months and ended the first half-year at +8.0 percent, a sharp upturn in June. Russia registered a decline of 9.2 percent in January-June. The highest increase in the first half-year was recorded by India, with +89.3 percent, but for a total value of only SFr27.6 million.