We observe some notable trends in Swiss Watch Exports in recent months.
Senior Equity Analyst, Sasfin Wealth
20 Nov 2020
1 reading min
With the release of the Swiss watch export data for October recently, we observe the following notable features. We monitor Swiss watch exports because Richemont is a key operator in this luxury segment.
China is the largest single country destination for Swiss watch exports, accounting for 13.4% of total exports in 2020 year-to-date (January to October).
This is up from 8.9% a year earlier and demonstrates the on-shoring of luxury spend by Chinese nationals amid the restricted foreign travel brought about by the COVID-19 pandemic.
In fact, since 2015 Swiss watch exports to China have increased by +9.8% p.a. compared a decline of -7.1% p.a. to the rest of the world excluding China. This supports research findings that conclude that Chinese nationals account for almost ALL the growth in luxury spending in recent years.
After a strong start in January 2020, Swiss watch exports slumped dramatically with a deep trough in April.
Swiss watch exports to China is the only region, not only recover to 2019 levels, but record strong growth on the prior year every month since June.