SPEEDY RECOVERY

Record-breaking success paves the way for the Swiss watchmaking industry to greater heights.

- KC YAP

2021 SAW A FASTER than expected recovery for Swiss watch exports. Performance was driven by very strong growth in the United States, alongside a steady upward trend in China, while numerous other markets continued to face sometimes significant difficulties. The return to pre-crisis levels as early as September and positive performance in the fourth quarter produced the best-ever annual results for the sector, at 22.3 billion francs, 2.7% higher than in 2019 (+31.2% compared with 2020) and a 0.2% improvement over the 2014 record.

While the pandemic continued to make its presence felt throughout the year, its consequences for the watch market proved less severe. Overall, luxury personal goods benefited from the sharp increase in demand in China and the United States, additional opportunities created by digitalisation, the use of savings accumulated during the various lockdowns and more significant restrictions on luxury experiences, particularly tourism-related activities. While travel retail suffered from the decline in tourism, an increase in domestic purchases, a switch to digital channels and the development of the duty-free market in Hainan offset losses to some extent.

Despite the encouraging results overall in 2021, stark discrepancies existed between the various actors in the luxury sector and in Swiss watchmaking. Growth was driven more by a set of brands than by product categories as in the past, while others were proving less successful and, in some cases, suffering significant declines. The same polarisation is being seen in markets and price segments, as evidenced by the decline in volumes.