Swiss watch exports dipped by 2.8% last year to CHF25.9 billion (€27.4 billion) due to a slump of over 25% in China, the Swiss Watch Federation announced on Thursday.

After reaching a historic high in 2023, last year exports continued to decline month after month. FH said that “the downturn in Swiss watches exports intensified in December.” During the last month of 2024, exports fell by 5.4% to CHF2 billion, according to a statement by FH.

The luxury sector has been hit by a slump in demand in China, impacted by slowing economic growth, the housing market crisis and youth unemployment. This in turn has affected other markets where demand is partly dependent on Chinese tourists.

Swiss watches exports to China fell by 25.8% in 2024, and exports to Hong Kong by 18.7%.

In the USA, where the sector began to bounce back in 2021 after the pandemic, exports have instead continued to grow, posting a 5% year-on-year increase, according to FH figures.

In Europe, the picture was mixed, with exports falling by 1.6% in the UK and Italy, and by 3.8% in Germany, while they rose by 2.5% in France.

On Thursday, Swiss watchmaker Swatch Group published annual results showing a sharp revenue decline, hit by “the marked downturn in demand for consumer goods in China,” the group said in a press release.

Sales for the Swatch Group, renowned for its colourful plastic watches but also the owner of some 15 other brands (including Tissot, Longines and Omega), decreased by 14.6% in 2024 due to the drop in Chinese demand, but also to a decline in watch component orders.

In mid-January, Swiss giant Richemont took the luxury sector by surprise when it reported a 10% rise in quarterly sales, fuelled by growth in other markets during the holiday season.

But Cartier owner Richemont’s growth was driven chiefly by jewellery, a segment more resistant to the vagaries of the uncertain economic climate. Sales of Richemont’s watchmaking division fell by 8% between October and December.