Swiss watch exports slump: As the market for high-end watches cools, monthly exports of Swiss watches dropped for the first time in three years, primarily due to decreased shipments to China and Hong Kong.

According to the Federation of the Swiss Watch Industry, exports fell 3.8% in value in February to 2.15 billion Swiss francs ($2.4 billion) from the same month last year.

Additionally, the quantity of timepieces sent from Switzerland decreased, falling 5.2% to 1.2 million pieces.

During the epidemic, consumers who were stuck at home and had more money because to government stimulus measures rushed to acquire luxury timepieces, such as Rolex and Patek Philippe, driving up demand for Swiss watches and high-end timepieces.

Constraints in the supply chain Many Swiss watchmakers were unable to maintain their output during lockdowns, and as a result, most brands increased their prices.

Now, with hostilities raging in the Middle East and Ukraine and economic strains continuing, a reckoning is under way. Over 3,000 franc watches, which make up around 80% of export values, saw a 1.8% decline in shipments in February.

Exports to China’s mainland plummeted by 25% from the previous year, while shipments from Hong Kong decreased by 19%. Switzerland’s largest market for timepieces is still the US, where sales have increased 5.5%. According to the Federation, exports to the UK fell by 2.1%.