Where there is shadow, there is also light: Despite generally challenging market conditions, next year’s Watches & Wonders fair in Geneva is on track for record participation.
The Swiss watch industry currently finds itself in something of a slump. On Tuesday morning, the Federation of the Swiss Watch Industry (Fédération Horlogère, FH) and the Employers’ Association of the Watchmaking Industry made political waves with a joint statement (in German only).
They lamented a «decline in demand and exports, which particularly affects suppliers and companies in the lower and mid-range price segments.» Many of the «700 companies with 65,000 employees» have already had to resort to short-time work, extend summer holidays, or initiate layoffs.
Monetary Policy in Focus
The associations called on authorities to improve the framework conditions for the export industry. At the top of their list is the Swiss National Bank (SNB). In their view, the central bank has «room to intervene in the foreign exchange market over the long term, in coordination with other measures to control inflation.»
Switzerland’s need to push harder for global free trade agreements and improve general conditions was also emphasized.
Moderate Decline
On the surface, the situation looks somewhat less dire. As of the end of July, watch exports totaled 15.2 billion francs, representing a 2.4 percent decline compared to the previous year. However, The big question is what portion of the exported watches is sold versus what remains piled up in retailers’ warehouses. No industry-wide statistics on this issue are available.
On a brighter note, there is positive news from the Watches & Wonders fair. As the organizers announced today, the number of exhibitors set to showcase in Geneva at the start of next April will increase to sixty.
Six New Exhibitors
Among the new brands at the fair is Bulgari, which was recently reported on by finews.com, as well as the innovative HYT, known for its liquid crystal technology – also previously covered by finews.ch (in German only).
Other newcomers in Geneva include Christiaan van der Klaauw, Genus, Kross Studio, MeisterSinger, and Armin Strom.
