Swiss Watch Industry Grew At A Five Year Low

The Federation of the Swiss Watch Industry (FHS) issued a communique recently that the Swiss watch industry reached 22 billion 200 million Swiss francs (US $24 billion) in 2014, an increase of 1.9% over 2013, creating a record high sales in the industry.

However, the report pointed out that sales in December last year were only 1 billion 800 million Swiss francs, down 2.5% from the same period last year, especially in the Chinese market.

The industry believes that Swiss watch export prospects are not optimistic.

It is reported that Swiss watch exports have been increasing year after year since the sharp decline in sales during the financial crisis in 2009.

The global financial crisis and recession have little impact on the Swiss watch industry.

Demand is an important reason for the continuous growth of sales volume.

But after three consecutive years of two digit growth, Swiss watch sales in mainland China showed a downward trend.

The anti-corruption movement has springing up in China. Officials at all levels are prohibited from accepting expensive gifts, such as advanced watches, to Switzerland.

A heavy blow.

Last December,

Sales fell by 27.2% over the same period last year.

In Hongkong, the largest export market in Swiss watches, the impact of Chung on events has not dissipated, and sales in December dropped by 10.3% over the same period last year.

Citigroup analyst Thomas Chauvet believes that the relatively weak sales in December 2014 may be related to the Spring Festival time in China.

Last year's Spring Festival was January 31st, so the demand was strong at the end of 2013, and this year's Spring Festival is in February 19th.

The Swiss watch industry was very sad at the beginning of 2015.

Last month, the Swiss central bank announced the cancellation of the Swiss franc's ceiling on the euro, and the Swiss Franc surged nearly 30%.

Exports accounted for the vast majority of total sales, and Swiss watch manufacturers suffered a great blow.

They have to sell more watches or raise their prices in euros and dollars, so that they can make up for the fast rising cost of Switzerland.

Chauvet pointed out that the bulletin did not look forward to the prospects for export in 2015.

"The Swiss watch industry has been reducing its stock in the past year, but there is no sign of improvement in exports, especially in the Greater China region."

However, investors are heartened by the communiqu message released by FHS.

Swiss watchmaker Swatch shares rose 1.5% on the same day, while its rival, the peak group, rose 2.73% as of midday trading.