Swiss watch exports rebounded in May after a slight dip in April, and now total CHF 10.9 billlion, 11.3% ahead of record-breaking 2022 for the first five months of the year.
For May, alone, Swiss watch exports rose by 14.4% to CHF 2.3 billion.
Watches made from gold and platinum rose by 19.8% in volume and 14.4% in value while steel watches rose by a more modest 4.3% in volume and 6.1% in value.
In an interesting reversal of the market over recent years, the average transaction value dropped, with the volume of watches overall rising by 20% while the value of those watches rose by just 14.5%.
That phenomenon has not fed through to retail sales in the UK where the volume of sales fell by 13.4% in May while the value was down by a more modest 3.9%.
According to GfK data, only the very top end of the market registered any growth last month, with the value of sales for watches priced at over £10,000 rising by 8.9%.
Every other price point saw the value of sales fall.
The competitive £1,000 to £3,000 price point appears to have been worst affected by the cost of living squeeze, with sales falling year-on-year by 33.5% in May.
The UK was the fifth largest destination in the world for Swiss watch exports in May, behind the white hot American market, which rebounded after a weaker April, China, Hong Kong and Japan.
The tight market looks set to continue this year after executives at Watches and Wonders predicted a slow down.
Watches of Switzerland Group has also said it expected sales to decline, year-on-year in its first quarter from May to July before returning to growth later in the year.
All eyes have been on China and Hong Kong, which lifted the most austere covid restriction in the world at the beginning of 2023.
But, so far, the rebound has been less impressive than hoped. China sales are up 30% for the first five months of 2023, but total exports still lag well behind the United States.
