By Brian M. Afuang
Visual Editor
FOR Switzerland’s watch brands, China is important.
The country was the third-largest destination for Swiss-made watches in terms of value during the first six months of 2017, latest figures released by the Federation of the Swiss Watch Industry showed. The group — which collates data on exports, not figures on actual sales after the watches (and movements) are exported — valued Switzerland’s watch exports to China at $756.6 million for the period, coming in behind the United States’ $1.040-billion total, and Hong Kong’s $1.258-billion take.
But more telling is that this year’s Swiss watch exports to the US have dropped 14.7% and 5.9% when these are compared against figures for the same six-month stretch in 2015 and 2016, respectively. Deliveries to Hong Kong were 26.3% worse compared to January to June 2015 results, and nearly flat for the same months last year. The fact is, the value of watches coming out of Switzerland in the last three years was lower than in 2014.
In contrast, shipments to China have spiked — 3.8% more than in 2015, and 21.7% over last year’s comparable period. Clearly, China is presently a bright spot for Swiss watch makers.
This, apparently, is not lost on Switzerland’s preeminent watch brand — Rolex. For more than a decade Rolex has unveiled its latest timepieces at Baselworld, the annual horologists’ and jewelers’ expo held in Basel, Switzerland, usually in March. In recent years these new models have wound their way to Asia — – which commanded a 49.6% share of the total value of Swiss watch exports during the first half of 2017 — via Hong Kong and China.
2017 ‘NOVELTIES’
In China, Rolex’s latest Baselworld releases — or “novelties” — are presented through The Rolex Experience program, held at the company’s Brand Experience Center in Shanghai’s famous Bund district. This year’s edition, ongoing until the end of August, features six models that have been markedly revised, plus the new Sea-Dweller that celebrates the line’s 50th year of production.
Causing a stir at the last Baselworld because of its unexpected increase in heft, as well as the addition of Rolex’s signature (but which has never been fitted to any Sea-Dweller in the past) Cyclops magnifying glass, the new Sea-Dweller is also drawing positive reactions among those who have found it isn’t as bulky on the wrist as its measurement might otherwise suggest. Plus, the watch is powered by a new movement — Rolex’s caliber 3235 — and retains its remarkable waterproof depth rating of 4,000 meters. It also gets a single line of red marking as an homage to the 1957 model.
Meanwhile, Rolex’s Baselworld 2016 sensation, the Cosmograph Daytona, this year gets a version with an 18-carat gold case, and the brand’s Oysterflex elastomer/metal composite bracelet to go along with its celebrated ceramic bezel. Sitting opposite the sport models in Rolex’s range is the Cellini dress watch, which this year has been upgraded with a moonphase complication and a date indicator hand.
For their part, the Rolex Yacht-Master II, Sky-Dweller, Datejust 41, and Lady-Datejust 28 receive updates such as different case material and changes to dial features.
Presented alongside these novelties are those from Tudor. Rolex’s sub-brand, which has been enjoying a string of successes with its recent releases, this year added four new versions to its Heritage Black Bay line — the Black Bay Chrono, Steel, S&G, and 41. The Steel and S&G are both embellished with new materials and are powered by in-house movements, while the 41 is a larger rendition of the dressy Black Bay 36. The range-topping Chrono, besides being the first chronograph variant of a Black Bay, is also significant because it has been fitted with an in-house caliber.
Accompanying the new Black Bays, and the numerous strap and bracelet options that are offered with the line, is the Clair de Rose ladies’ watch, available in three case sizes and six classical designs.
LUXURY ON THE RISE
Tudor complements Rolex’s position — and that of luxury Swiss-made watches — not only in China but also around the world (30 countries comprise 90% of the destination of Switzerland’s exports). Because while the bulk of Swiss watches shipped abroad are those priced $200 and below, it is the brands at the top of the price range that command the biggest chunk of total exports’ value.
Data from the Swiss watch industry federation showed that watches priced between $500 and $3,000 — the range in which many Tudor models belong — accounted for 21.6% of the total value of exported watches during the first half of 2017, and that watches costing $3,000 and over (definitely Rolex’s territory) made up 66.3%. In contrast, watches that sell for $200 and below took in only 5.1% of the total value.
In its latest report the Swiss watch industry group also noted that the value of exported entry-level watches is dropping, while that of luxury pieces is rising — along with the total value of all exported watches.
For the first six months of the year, the value of Swiss watch exports was placed at $9.46 billion while the comparable period in 2016 managed only $9.39 billion. Watches in the $500-$3,000 range were valued at $2.05 billion and top-tier ones reached $6.27 billion this year, against $2.02 billion and $6.19 billion, respectively, in 2016. Meanwhile, exported watches priced $200 and below were valued at $460 million this year, 11% lower than the $517 million in 2016’s first six months.
These days, luxury is what makes the Swiss watch industry tick.
