Swiss Watch Exports to the U.S. Rebound with Nearly 10% Growth in May
Swiss watch exports to the United States have experienced a significant rebound, according to the Federation of the Swiss Watch Industry. After a 4.9% drop in April, the first decline in two years. May saw a remarkable 9.8% increase in exports to the U.S.
This resurgence comes as positive news, alleviating concerns that the American demand for Swiss watches might be declining.
The latest data from the Swiss trade group reveals that exports to the U.S. reached nearly 359.4 million Swiss francs ($400 million) in May.
The robust recovery suggests that the Swiss watch industry is not yet affected by the so-called “richcession,”. A potential reduction in spending by affluent Americans due to the current economic climate.
The apparent resurgence in demand among high-end American consumers indicates their willingness to resume travel and spending as summer approaches.
Analyst Luca Solca from Bernstein notes that this resurgence reflects a continued YOLO (You Only Live Once) mindset among these consumers, further bolstering the market.
Swiss Watch Exports to the U.S. Show Strong Recovery
The positive trend extends beyond the U.S., as Swiss watch exports worldwide experienced significant growth. In May, exports increased by 14.4% to 2.3 billion Swiss francs ($2.6 billion). Year-to-date, global shipments have risen by 11% to reach 10.9 billion Swiss francs ($12.1 billion).
These steady increases demonstrate that consumer demand for prestigious watch brands like Rolex, Omega, and Patek Philippe remains robust, defying concerns of a potential decline in interest.
While the U.S. remains the largest market for Swiss watchmakers, exports to other regions also witnessed growth in May.
The data shows a remarkable 158.3% increase in exports to China. Amounting to 237.4 million Swiss francs ($264 million), and a 19.2% rise to Hong Kong. Totaling 227 million Swiss francs ($252.4 million).
Retailers in these regions are rushing to replenish their stocks of luxury timepieces following years of pandemic-related restrictions and lockdowns.
Swiss watch exports to the United States have recovered impressively in May. Bouncing back from a slight decline in the previous month.
This resurgence reflects the continued enthusiasm of high-end American consumers for Swiss timepieces, dispelling concerns of a significant downturn.
With strong global performance and increasing demand in key markets like China and Hong Kong, the Swiss watch industry maintains its prominence and resilience, showcasing the enduring allure of these prestigious timepieces.