When Will the Bleeding Stop? Swiss Watch Industry Export Statistics - September 2020
Following August declines in swiss watch exports, September was another month of declines. September exports totaled CHF1.6 billion, a decline of -12% stretching the negative declines to 6 months. The 12 month moving average is right around the -20% mark, capturing the loses the watch industry has seen due to the global pandemic.
Each material of watch saw a continued decline, with very little sign of any recovery on its way. Looking at price segments however, there was just a small sign of possible recovery. The CHF 500-3,000 segment saw a slight increase of 3% in value. Whether this is a sign of a recovery on its way is a hard pill to swallow, especially with the other price segments seeing large declines in units and value.
Similar to last month, the main markets that were purchasing the largest share of swiss watches in September came from Asian. China saw an almost 80% increase in swiss watch imports, showing the resilience of their economy currently. To have grown by such a large amount after a global pandemic definitely speaks to the fact that their economy is doing well.
October Predictions
While economies were largely open and cases of COVID-19 were on the decline, October saw increases in infection rates making many countries second guess the opening of their countries. Many European countries have plans for a second lock down to stem infection rates. There is also little signs of a vaccine in the near future. We predict similar export results of -12% for October, followed by larger declines to end 2020.
