PARIS — The downturn for Swiss watchmakers intensified in December 2024, according to figures published Thursday by the Federation of the Swiss Watch Industry, ending a difficult year for the segment largely due to falling demand in China and Hong Kong. Sales of Swiss timepieces in December dropped 5.4 percent year-on-year to 2 billion Swiss francs. Annual exports totaled 25.9 billion Swiss francs, illustrating a 2.8 percent drop compared to the previous year.
“It follows three years of steady growth and suggests an economic slowdown in demand for luxury personal items, particularly among so-called aspirational customers,” the federation remarked. Watchmaking firms have already expressed their concerns for 2025, indicating any recovery will largely hinge on the outlook for China, where uncertainty continues to loom large.
To make matters worse, the final month of 2024 saw all of the four biggest markets for Swiss timepieces experience lower demand. Exports of Swiss timepieces to the U.S. fell by 1 percent to 345.7 million Swiss francs, making this the first decline after six months of continuous growth. China exhibited particularly poor performance, with exports plunged by 19 percent to 151.2 million Swiss francs. Consequently, it dropped to third place among leading markets for Swiss timepieces, surpassed by Hong Kong, which saw a smaller decline of 6.4 percent.
Similarly, exports to Japan decreased by 12.7 percent, under pressure from tough comparisons, and the United Arab Emirates saw its exports remain roughly flat. Interestingly, the U.K. emerged as a bright spot, witnessing a 5.8 percent increase.
A closer examination of the product categories revealed significant disparities. Exports of watches priced between 200 and 500 Swiss francs were hit hardest, dropping 13.2 percent. Watches retailing for under 200 francs followed with a 5.9 percent decrease, and those above 3,000 francs fell by 5.3 percent. Conversely, timepieces priced between 500 and 3,000 francs performed slightly less poorly, experiencing only a 1.8 percent decrease.
The most notable segment, precious metal watches, fell 3.4 percent to 796.3 million Swiss francs, with volume remaining relatively flat. Meanwhile, steel watches gained 1.2 percent in volume but saw their total value decrease by 5.9 percent, amounting to 635.4 million Swiss francs. Notably, gold-and-steel watches fetched 305.7 million Swiss francs, which reveals significant declines both in value (10.3 percent) and quantity (16 percent).
Looking at the yearly perspective, the number of wristwatches exported reached historically low levels of 15.3 million, down 9.4 percent year-on-year. For the whole year, the U.S. saw 5 percent growth, reinforcing its position as the sector’s leading market after four years of steady increase. The federation noted the outlook there remains positive.
Exports to Japan also saw growth, up by 7.8 percent, alongside gains for South Korea, Spain, and Mexico. Meanwhile, annual exports to China plummeted by 25.8 percent, and those to Hong Kong declined by 18.7 percent.
For market players reporting their 2024 results, performances varied. Richemont indicated its specialist watchmaking division experienced growth across regions, except for Asia-Pacific. Double-digit sales increases spilling from the Americas and the Middle East helped mitigate declines to only 8 percent for the last three months as opposed to the 16 percent plummet from preceding six months. Meanwhile, LVMH Moët Hennessy Louis Vuitton reported its watch and jewelry division saw 3 percent growth during the last quarter of the year, yet finished the year down 3 percent overall.
At the same time, another industry shines amid economic woes. China’s crystal industry has witnessed a remarkable upswing, especially with the Lunar New Year celebrations approaching—a time traditionally associated with luck and prosperity. Crystals, often believed to possess healing properties, serve as sources of hope and comfort for many amid economic uncertainty.
Irene He, a 23-year-old recent university graduate from Wuhan, Hubei province, provides insight as she recounts her experience of turning to crystal bracelets during her protracted job search. “I used to believe fate was something you had to take control of yourself—you couldn’t just leave it to chance,” said He. Yet, her job search has been tumultuous since September, leaving her feeling the need to seek external sources of luck.
During her visit to Hangzhou for prayers and fortune-seeking at the Lingyin Temple, she found herself enamored by the yellow beads of a crystal bracelet from a market stall. “This could attract wealth and boost my chances of success,” persuaded the vendor, and He felt drawn to the promise as she navigates her competitive job market.
This juxtaposition between the luxury watch industry’s significant downturn and the rise of affordable, emotionally supportive products like crystals encapsulates the dynamic nature of global markets amid fluctuated economic conditions. While some luxury brands feel the impact of reduced demand, others, tapping directly to consumer emotions and needs, are witnessing growth—even if it's found through 'little luxuries.'