Hong Kong Slowdown Hits Swiss Watch Exports

RAPAPORT... Swiss watch exports fell 0.4% to CHF 1.76 billion ($1.75million) in April, amid continued weak demand in Hong Kong. "The negative change in exports to Hong Kong accentuated theslowdown in growth that began in late 2018," the Federation of the Swiss WatchIndustry reported Tuesday. The  percentage decline suffered from an unfavorable comparison with April 2018, when shipments to Hong Kong showed an unusually steep increase.  Exports to Hong Kong dropped 3.9% to CHF 251.2 million($250.1 million), in contrast to 43% growth in April 2018. Supply to the USincreased 17% to CHF 205.5 million ($204.6 million), while orders from Japan,which posted their fourth consecutive month of strong growth, climbed 21% to CHF137.7 ($137.1 million) million. Shipments to China decreased 6% to CHF 131.1million ($130.5 million). Top-price watches were the only value category that sawgrowth. Orders of watches priced above CHF 3,000 ($2,987) rose 4.3% by value.Exports of timepieces worth CHF 500 ($498) to CHF 3,000, as well as watchesvalued between CHF 200 ($199) and CHF 500, fell 8%. Supply of products pricedunder CHF 200 plummeted 16%. Similarly, by materials, only two divisions gained. Exportsof watches made from precious metals rose 4% to CHF 571.7 million ($569.2million), and shipments of gold-and-steel timepieces increased 5% to CHF 292.3million ($291 million), while demand for lower-value materials fell. Supply oftimepieces made from steel declined 3.8% to CHF 666.3 million ($663.4 million). Shipments of watches made from other materials dropped 12% to CHF 46.8million ($46.6 million). Image: A woman looking at Swiss watches in a shop window. (Shutterstock)