Swiss Watch Exports Rise Nominal 11% On Year in 2012

By John Revill

ZURICH--Swiss watch exports rose 11% to a new record in 2012, as sales of luxury watches to China and buying by tourists from Asia on European trips buoyed the industry.

Swiss watch exports swelled to 21.4 billion Swiss francs ($23.5 billion), from 19.3 billion Swiss francs in 2011, the Swiss customs office said on Tuesday.

The industry had already reached an annual record during the first 11 months of 2012, even though the Chinese market, the world's third largest, had started to slow.

Exports declined in December, falling 5.6% in nominal terms to 1.77 billion Swiss francs for the month.

The pace of Swiss watch exports has slowed in recent months, in part because of concerns about the strength of China's economic growth. A clampdown on gift-giving in China, has also weighed on growth.

Chinese luxury taxes have also prompted a change in buying patterns. More Chinese travelers are picking up watches while on European visits, prompting watchmakers to raise exports to countries on the continent.

Swatch Group AG (UHR.VX), Compagnie Financiere Richemont SA (CFR.VX) and privately-held Rolex are the main producers in the Swiss watch market. Swatch reported a 26% increase in annual earnings on Monday, in part because of booming exports.

On Monday, Swatch closed at CHF543.5, up 30% in the last 12 months, while Richemont closed at CHF75.8, up 36% over the period.

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