Brexit Continues to Buoy Swiss Watch Growth

RAPAPORT... Swiss watch exports rose 4.4% to CHF 1.74 billion ($1.72billion) in March as UK retailers continued to stockpile in preparation forBrexit. "The UK was a special case once again, because ofstockpiling in the run-up to Brexit," the Federation of the Swiss WatchIndustry reported last week. "Other European markets continued to lose ground." Exports to the UK rose 76% to CHF 134.7 million ($132.9million). Asia also showed strong growth for the month, with supply to Chinaclimbing 17% to CHF 141.6 million ($139.7 million) and Japan jumping 22% to CHF137.1 million ($135.3 million). Orders to Hong Kong increased 2.5% to CHF 236.2million ($233 million), and shipments to the US grew 6% to CHF 187.4 million($184.8 million). Top-price watches enjoyed the strongest growth. Orders ofwatches priced above CHF 3,000 ($2,961) rose 13% by value. Exports of thoseworth CHF 500 ($493) to CHF 3,000 fell 5%, while those priced between CHF 200($197) and CHF 500 slipped 1.7%. Supply of products valued under CHF 200plunged 25%. Similarly, exports of watches made from precious metals rose11% to CHF 556 million ($548.4 million), and those comprising gold and steelgrew 12% to CHF 292.6 million ($288.6 million). Shipments of timepieces made ofsteel remained nearly flat, inching up 1% to CHF 659.9 million ($650.9million), while supply of watches made from other metals increased 4.4% to CHF82 million ($80.9 million). Exports rose 2.9% to 5.16 billion ($5.09 billion) for thefirst quarter, from January to March. Image: Swiss watches in a store display in Geneva. (Shutterstock)