France accounted for 6.3% of Swiss watch exports in May, only just behind the UK’s 6.7%.
Historically, France was a bigger market for Swiss watchmakers than the UK, but that changed in 2016 when the British unexpectedly voted to leave the European Union; a referendum result that tanked the pound and triggered a wave of high net worth tourist spending on luxuries as they became cheaper on our shores.
From 2016 to 2020, France continued to lose ground to the UK, largely as a result of fierce competition driving capital investment in improving the retail experience for shoppers on this side of the Channel.
Almost four years after the EU referendum, Boris Johnson’s government forced through the Brexit withdrawal agreement in January 2020.
This withdrew instant VAT rebates for shoppers visiting the UK while these rebates were still available on the Continent, even to UK shoppers, who claim back their 20% then illegally dodge paying duty when bringing expensive watches into the country by wearing them through the green lane of customs.
That decision had an immediate affect on Swiss watch exports to France. From a global market share of below 4% in 2020, France now accounts for over 5% as the lure of Paris started to eclipse the charms of London and other British tourist cities.
Annual Swiss watch exports to the UK continued to rise during the three-year post-pandemic boom of 2020 to 2022, but have levelled off since 2023 as the rising cost of living has made most households poorer.
The most recent data from the Federation of Swiss Watch Industry, for May 2024, shows exports to France soaring by 18%, year-on-year, while exports to the UK dipped by 2%.
The UK is still the fifth biggest market in the world for Swiss exports, but France has closed the gap and is now in sixth.
Japan, which is experiencing a mini boom because of its currency weakness, has leapfrogged the UK into fourth place in May with 7.5% market share compared to the UK’s 6.7%.
Globally, Swiss watch exports declined slightly in May, continuing a negative trend since the beginning of the year.
Exports totalled CHF 2.3 billion, down 2.2% on May 2023.
For the first five months of 2024, exports topped CHF 10 billion, but that is 2.5% lower than the record set over the same period last year.
The volume of units declined at twice that pace, down 4.2% in May, as exports fell by 16.1% for watches in the CHF 500 to 3,000 price sector. The CHF 3,000+ price sector was the only part of the market to register any growth, up a tick at +0.7% in May.
Might be worth including the pie chart which relates to “The UK is still the fifth biggest market in the world for Swiss exports, but France has closed the gap and is now in sixth.
Japan, which is experiencing a mini boom because of its currency weakness, has leapfrogged the UK into fourth place in May with 7.5% market share compared to the UK’s 6.7%.”