Throughout 2014 we touched on the fact that the Swiss watch industry was enjoying a record year. Despite hiccups along the way, a report published at year end this December showed that 2014 was once again a year of growth for the Swiss watch industry.
The first 11 months of the year were the most successful before some volatility in Chinese markets (now accounting for a large proportion of Swiss watch exports) halted growth. For January through to the beginning of November, the industry enjoyed a growth in exports of around 2.3%.
In a statement from Jean-Daniel Pasche, the president of the Federation of the Swiss Watch Industry, Mr Pasche comments that the record breaking year that the industry has had dismissed claims from others that 2014 was a year of crisis.
Overall, there was still a growth, albeit at a slightly lower rate. Unrest in certain markets and global events outside of industry control certainly had an impact on performance, but the the industry still saw success.
We reported on China’s democracy protests earlier in the year, and these greatly impacted the industry as some of the year’s busiest retail days were taken away. Hong Kong and China have become some of the industry’s biggest export markets, but November’s unrest saw exports to Hong Kong fall 13.5%. But, the industry showed resilience once again and grew 0.8% on the year as a whole.
As for China, November was hit by a 27.6% decrease. With such major global events playing out last year, it’s testament to the quality of watch manufacture that the industry continued to perform as well as it did.
The most obvious stand out moment of 2014 was the Patek Philippe supercomplication that was successfully sold at auction this year. The watch became the most expensive watch ever sold and was something of a bastion of watchmaking of old and was a completely one-off, bespoke pocket watch commissioned in 1925. Although wearing the Patek Philippe badge, it utilised multiple individual craftsmen to complete and sold for around £15 million.
Looking ahead to 2015, Pasche has touched on a lingering factor perhaps having a significant impact in the early stages of this year.
As oil prices continue to fall, major export markets that rely on the commodity for income could start to feel the impact. Mr Pasche points quite specifically at Russia and the Middle East here. The Swiss industry has typically enjoyed fairly inelastic demand for their wares, but their customer base could be limited.
Germany and France didn’t soak up as many exports last year, and this could have been due to changing economic climates and interests. However, the falling oil price may be set to have a very positive impact. The US was a strong market last year, and as oil prices fall, disposable income could well rise. We would expect to see some improvement there early on this year.
Of course, all of these events do nothing to damage the thriving watch lovers community. If you’re looking to start the new year off in the correct way, take a look at our online store. We have an exciting range of watches across all of your favourite timepieces. If you’re after a particular watch and you don’t see it online, check back regularly. We’re always updating our stock and are always happy to help.
If you’d like to read more about the record-breaking Patek Philippe, you can view our in-depth article of the watch here.