Review Of 2010 Watch Industry Sales Analysis

Global watch production in 2010 was about 1.2 billion. China is clearly the largest exporter of watches (671 million pieces), followed by Hong Kong (419 million pieces). In fact, Hong Kong does not produce watches, but is a watch trading circulation center. Swiss watch exports in 2010 were only 26.1 million, far behind the top two, accounting for only 2% of the world’s total watch production. The reason why Switzerland ranks first in the world in watchmaking is that the value of its watches, including more than 50% of sales with 2% of production, total sales reached 15.5 billion US dollars, far ahead of Hong Kong’s 7.5 billion US dollars and China $ 3.1 billion. In other words, 95% of watches with a price higher than 1,000 Swiss francs are ‘Made in Switzerland’! If the average price of a Chinese-made clock is $ 2, then the average price of a Swiss-made clock is $ 558. Coupled with the 700 million Swiss francs sales of the Swiss domestic watch market, the total sales of Swiss timepieces in 2010 were 15.8 billion Swiss francs, accounting for 53% of the global watch market sales. It is worth noting that these statistics are based on ex-factory prices, plus markups from sales channels, and real sales are much higher than this data.

Who is the buyer of Swiss watches?
 In absolute terms, Hong Kong is the number one market for Swiss watches, with sales of 3.2 billion Swiss francs. However, a significant portion of this is for re-export. Although sales plummeted by 37.9% in 2009, the US still ranked second with 1.7 billion Swiss francs. But the biggest impetus for the watch industry comes from the Asian market. In 2010, the Asian watch market absorbed 50% of its exports to CHF 8.5 billion. Compared with 2009, the highest growth rate was 34.6%. The Chinese market alone achieved sales of 1 billion Swiss francs for the first time, an increase of 57%. The average price of a Swiss watch reaches 800 Swiss francs (export price) in China, making China a luxury land for luxury brands. A significant portion of the watchmaker’s turnover is realized in China. According to a Swiss Vontobel Bank research report, the Swiss Swatch Group’s brands are most active in this region, with 33% of the Group’s sales attributed to the Chinese market.

Swiss watch exports grow rapidly
 Within six years, that is, between 2003 and 2008, the export volume of Swiss watches increased rapidly by 67%! This surge of momentum encountered a halt in 2009, the same year the Swiss watch’s foreign sales fell sharply by a third. However, watchmakers didn’t wait long to smile again: 2010 sales rebounded to 2007 levels. Swiss watches exported in 2010 are represented by stainless steel mechanical watches. Stainless steel watches accounted for half of the total export watches; mechanical watches accounted for 72.1% of sales with 18.9% of exports. In other words, more than 80% of the Swiss-made watches are equipped with quartz movements, including about 12 million Swatch quartz watches.

Kingdom of Watches
 The three biggest watch kingdoms in the world are: Swatch (Swatch Group), Rolex (Rolex) and Richemont (Riemont Group). These three watchmakers together account for 46.8% of the global market, or nearly half of the world’s market. The world’s leading luxury product LVMH Group, after acquiring the Italian brand Bulgari in March 2011, ranks fourth in the watch industry. It is worth noting that the LV MH Group’s watch business accounted for only 7% of its total turnover, compared to 85% of Swatch’s turnover and 100% of Rolex’s. , And 48% of Richemont’s turnover. The market share of Citizen, Seiko and Casio, the three well-known Japanese watchmakers, fell from 14.7% to 10.7% within two years.