Swiss watch exports jumped again in June as demand for pricey luxury timepieces from the US and China stayed strong.
Shipments surged by 14% last month to 2.4 billion francs ($2.8 billion), the Federation of the Swiss Watch Industry said Thursday. The increase underscores continued demand for expensive watches from brands including Rolex, Omega, Patek Philippe and Vacheron Constantin despite concerns that shaky economic growth and higher prices might stall consumer interest.
In first half of the year, the key Swiss sector’s exports rose 12% to 13.3 billion francs. Last year, shipments reached a record.
Exports to the US, the biggest market for Swiss watches, increased 8.8% in June. That followed an increase in May and a decline in April, the first in more than two years.
Shipments to China, the second biggest market, rose 9%.
Deliveries to European markets rose 13% as strong demand in Italy and Germany offset a decline in Spain and the Netherlands, the Federation said.
Exports by value and number of units rose across all price categories, suggesting improving demand for lower priced watches. Swatch Group AG reported better than expected first-half financial results last week and the company’s CEO said demand for less expensive timepieces drove the performance.
The value of exports for watches priced between 200 and 500 francs rose by 19% last month and shipments of watches priced between 500 francs and 3,000 francs rose 8%.
Watches in the lowest price category, below 200 francs, increased by 10%, driven by sales of Swatch Group’s Omega MoonSwatch.
