Trump does not stop the export of Swiss watches: in July up 10% (cross-border guide)

Context

In Brief

• Watch exports increase by 10% in July
• 9.6% growth on an annual basis
• United States is the main market
• Exports valued at 2.63 billion francs

Key Facts

• What: Watch export trend
• When: July
• Where: Bienne (BE)
• Who: Swiss Watch Industry Federation (FH)
• Amount: 2.63 billion francs
• Percentage: 10%

The Swiss watch industry has seen a significant increase in exports in July, with a 10% rise compared to the same period last year. This growth is largely driven by the strong demand in the United States, which remains the main market for Swiss watches. The total value of exports reached 2.63 billion francs, a 9.6% increase on an annual basis. The Swiss Watch Industry Federation (FH) has reported that the growth in exports is a positive sign for the industry, which has been affected by the global economic downturn. The FH has also noted that the growth in exports is a result of the strong demand in the United States, as well as in other key markets such as France and the United Kingdom. However, the industry is also facing challenges in other regions, such as Japan, where exports have declined.

The Swiss watch industry is a significant contributor to the country's economy, and the growth in exports is a positive sign for the industry. However, the industry is also facing challenges in other regions, and the FH has noted that the growth in exports is a result of the strong demand in the United States and other key markets. The industry is also closely monitoring the developments in the global economy and is adapting to the changing market conditions.

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Operational details

The analysis of disaggregated data by price range offers further insights into the Swiss watch industry's performance. The high-end segment, which includes watches priced at 3,000 francs or more, recorded a 12.0% increase in July. At the same time, the economic segment, characterized by watches priced between 200 and 500 francs, also registered a significant growth of 26.1%. According to the Federation of the Swiss Watch Industry (FH), it is precisely the more affordable watches that confirm the recovery of this year, after the same segment had recorded a consistent decline for four consecutive years. This polarization demonstrates how demand is moving simultaneously towards extreme luxury goods and more accessible products, partially excluding intermediate segments from such marked growth dynamics. The evolution of export volumes and values reflects different commercial strategies adopted by major groups and independent brands, engaged in positioning their catalogs based on the changing preferences of global consumers. The recovery of the economic segment represents a particularly encouraging signal for the diversification of Swiss production, traditionally associated almost exclusively with high-end watchmaking and high prices. ### The impact on production structures and employment

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Key points

Reading the statistical data released by the Federation of the Watch Industry requires a careful examination of the financial instruments and macroeconomic variables that affect purchasing power and monetary stability in Switzerland. With a monthly turnover that reached 2.63 billion francs in July, fluctuations in the exchange rate of the Swiss franc against major foreign currencies play a decisive role in the margins of exporting companies. Those who operate or reside in the Swiss territory must consider how the strength of the national currency affects not only the balance sheets of large watchmaking manufactures, but also the entire economic fabric linked to the induced and associated financial services. Companies and self-employed workers in the sector must constantly deal with tax planning and the management of cross-border financial flows, taking into account current federal and cantonal regulations. To accurately assess the impact of taxes and contributions on income from economic activities in Switzerland, you can use our calcolatore stipendio calculation tool.

Source: tio.ch