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The Deloitte Swiss Watch Industry Study 2015

Exports of Swiss wristwatches peaked at a value of CHF 21 billion in 2014, which makes Switzerland the world’s leading exporter of watches in terms of value.

The average price of exported watches rose from CHF 310 in 2000 to CHF 730 in 2014. However, in the first half of 2015 Swiss watch exports by value remained almost stable.

Average price of exported Swiss watches peaked at CHF 730

2014: CHF 730 2000:

CHF 310

The economic outlook for the Swiss watch industry worsened substantially. 41% of watch executives surveyed are pessimistic about the economic outlook, whereas only 14% are optimistic.

This is the worst result since the launch of the Swiss Watch Industry Study in 2012.

Pessimism hits four-year high 14%

Optimism

41%Pessimism

69%69% of watch executives see the strong Swiss Franc as a significant risk to their business, up from 50% in 2014.

Another important concern is weaker foreign demand, especially in Hong Kong and China. 34% of respondents expect the demand for Swiss watches to decline in Hong Kong and China.

External risks are back

34%

expectdecline

in demand

see strong CHF as a risk

0 10 20 30 40 50

2015: 25%

39%

2014: 11%

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According to the survey 25% of watch executives consider smartwatches to be a competitive threat, up from 11% in 2014.

39% of respondents indicated that following the release of the Apple watch, they are more aware of the challenge from this product category.

Smartwatches taken more seriously Consider smartwatches to

be a competitive threat

More aware of challenge following Apple Watch

Our consumer survey indicates that 61% of Chinese, 48% of Italian and 35% of French consumers intend to buy a smartwatch in the next 12 months.

In contrast, the percentage in Switzerland is only 17%.

Significant consumer interest in smartwatches in China, Italy and France

61%China

35%France

48%Italy

17%Switzerland

Own e-boutique

Online resellers

2015:

38%

2015:

19%2014:

13%2013:

11%

2013:

21%2014:

21%

On what sales channels will you be putting most emphasis in the next 12 months?

An increasing number of watch executives will give more emphasis to online sales channels in the next 12 months.

Watch companies continue to focus on digital media in their marketing campaigns, and social media are by far the most important marketing channel in 2015.

The rise of digital media

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