Sales of Swiss watches will continue to expand in 2012, despite concerns about faltering economic growth, as exports of timepieces show no signs of weakening and inch towards a record high, the head of the Swiss Watch Association said.
Exports of watches rose 21 percent in September to 1.79 billion francs ($2 billion), according to data from the Swiss Federal Customs Association, taking the total value of watches exported in the first nine months of the year to 13.5 billion francs.
"These numbers are in line with what we were expecting for this year," Jean-Daniel Pasche told Reuters in a telephone interview. "Unless there is a totally unforeseeable catastrophe we are moving towards a new annual record," he said. Watch exports reached a record high of nearly 17 billion francs in 2008, but fell sharply the following year as the economic crisis prompted retailers to empty their stockrooms.
But even though Swiss watchmakers are not immune to economic turbulence, Pasche said he was confident they should be able to weather a slowdown thanks to a good geographical sales mix and an innovative range of products.
A broad range of prices should also support the sector, he said. In September the luxury segment grew the most, but Pasche thinks it is important that watchmakers have a strong presence in the entry-level as well.
Nervousness about growth in China has weighed on the shares of luxury goods companies over the past few weeks, but some watchmakers have shrugged off these concerns for now.
"As far as we're concerned we haven't felt this nervousness among watchmakers," Pasche said.
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