The Swiss watchmaking industry began 1998 well, despite the crisis which has hit some parts of Asia. Exports to the countries affected by this turbulence contracted by around 12% in the first half of 1998, but these losses were more than offset by the dynamism of four big markets (United States, Italy, France and Spain). Taking all products together, Swiss watchmaking exports were worth 4′030.9 million francs between January and June 1998, up 4.5% on the previous year. This rise followed a first half of 1997 which had already proved exceptional. It was accompanied by an increase in the quantities of watches exported.
The prospects for the second half of the year suggest a degree of stability. Some anxiety remains over a possible resurgence of the Asian crisis.
The products
For the first time in more than two years, the downturn in exported volumes was halted in recent months. Exports of complete watches rose by 4.6% in volume and value. Between January and June 1998, Swiss manufacturers exported 15.6 million watches, i.e. 700,000 more than in the same half of last year. The value was 160 million francs higher than in 1997 at 3,601.4 million francs.
The average price remained stable at 231 francs.
Two factors explain this trend reversal. Firstly, the growth rate of steel watch exports has increased further since the beginning of the year. Swiss manufacturers exported over five million pieces in the past six months, 36.1% more than a year ago. Exports of plastic watches have practically stabilized (- 3.3% between January and June 1998), putting an end to several months of successive falls.
On the other hand, the Asian crisis has affected exports of gold and steel/gold watches. The number of gold timepieces increased (219,511 or + 3.8%) but the value remained broadly similar (958 million francs against 967.5 a year previously, i.e. a fall of 1%). Steel/gold watches lost 3.1% in volume and 11.4% in value. In both cases, many consumers chose less expensive products.
Finally, from the technological standpoint, only quartz watches have benefited from the recent trend. They now represent 92.5% of the total exported volume against 90.6% a year ago. In value terms, the share of mechanical watches fell from 48.3% in 1997 to 43.8% this year.
Other watchmaking sectors also benefited from favourable sentiment, except for clocks which declined by around 20% in value. Movement exports stabilized. Just under 3 million pieces were sold abroad (-0.3%) with a value of slightly over 54 million francs (+1.8%). The value of exported cases was 20.9% up on last year. Exports of other external parts were 7.6% higher.
The Markets
With growth of just under 20% since the beginning of the year, the US market has become the first outlet for Swiss watchmakers ahead of Hong Kong. The fifteen principal markets alone took just under 85% of the total value exported by the Swiss watchmaking industry. These countries are as follows (in million francs with % variations in relation to the first half of 1997).
Hong Kong
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