GENEVA – Boosted by huge gains in key markets such as the U.S., Japan and China, the value of Swiss watch exports in 2005 increased by 10.9 percent to a record 12.3 billion Swiss francs, or $9.5 billion.
“Propelled forward by the luxury segment, Swiss watchmaking products were able to avoid the pitfalls of a less-than-favorable economic situation, particularly in Europe,” the Federation of the Swiss Watch Industry said Thursday. “Des – pite the fact that the base of comparison will be very high, the year 2006 augurs extremely well. The final result could exceed that of 2005 by as much as 5 or 6 percent.”
Exports of finished watches in December help-ed boost sales, the federation noted.
The U.S. was the top destination, with an increase of 14.5 percent to 2.1 billion Swiss francs, or $1.62 billion, followed by Hong Kong, which posted a below-average increase of 7.7 percent to 1.7 billion Swiss francs, or $1.31 billion, and Japan, with a 15.7 percent gain to 1.1 billion Swiss francs, or about $850 million.
Other significant export markets for Swiss watches included Germany, up 11.9 percent to 632.2 million Swiss francs, or $488 million, and China, up 25.7 percent to 351.3 million Swiss francs, or $271 million.
Big gains also were achieved in exports to oil-rich United Arab Emirates, with the value of shipments up 14.8 percent to 346.7 million Swiss francs, or $268 million. Exports to Thailand were up 22 percent to 251.7 million Swiss francs, or $194 million, and sales to Russia were up 11.1 percent to 194.2 million Swiss francs, or $150 million, the federation said.
In related business, the Swatch Group on Thursday announced an increase in sales for 2005 of 8.3 percent to a record 4.5 billion Swiss francs, or $3.48 billion, spurred in part by increases in the luxury watch segment, which, it said, “continues to enjoy very strong demand.”
The Biel, Switzerland-based group’s luxury division includes Breguet, Blancpain and Jaquet Droz brands, as well as the Omega brand. The group said it also achieved strong growth in the premium and midprice segments, citing its Longines, Rado and Tissot brands.
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Calvin Klein and other brands also made progress, the firm said, adding that “potential for growth in this segment remains exceptionally high in America, Japan and China.”