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Exports of Swiss watches have continued to fall, with July recording a 25.9% decline over the previous year. Overall since January, Swiss watch exports have fallen 26.3% or US6.8 billion. Sales of Swiss watches have been in significant decline since the end of 2008 with exports now below 2006 levels.
Those surviving best are watches priced between 200-500 Swiss francs (US $186-%466) which experienced only a 7% decline. Those costing over 3000 Swiss francs (or $US2797) fell more than 30% – gold watches being hit the worst.
Swiss watches are a common feature of most airport retail offerings and there are questions being asked as to whether or not the more expensive Swiss watches will ever recover to the level previously seen. Some suggest that the Global Financial Crisis has led to a fundamental shift in the way people perceive luxury goods which will remain long after the economy recovers. Whilst this may be true in some respects, watches really fall into a different category. They are not things people traditionally buy lots of or replace frequently. The more expensive Swiss watches in particular are often viewed as investment pieces which in some cases are even handed down over generations.
Its entirely logical that with money being tight that people have put off purchasing these watches and have stuck with their existing watch – after all its hardly a priority at the moment. But once things recover its entirely probably that the more “investment” end of the watch market will indeed recover – those brands which are purchased more for quality than image alone. What may not recover is the designer watch market where styles change more frequently and it becomes harder to justify spending thousands on a watch that will be out of fashion in a year or two.
