# Swiss watchmakers remain upbeat ahead of Geneva gathering
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2022-08-29
Category: NEWS
Category URL: https://financedigest.com/category/news
Meta Title: Swiss Watch Sales Surge Despite Geopolitical Tensions
Meta Description: Swiss watchmakers remain optimistic about luxury timepiece demand despite global uncertainties. Explore the rebound and growth in the watch industry.
URL: https://financedigest.com/swiss-watchmakers-remain-upbeat-ahead-of-geneva-gatheringhtml

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By Silke Koltrowitz

ZURICH (Reuters) – Swiss watchmakers are not seeing signs so far that geopolitical tensions and recession fears are hitting demand for luxury timepieces, executives told Reuters ahead of the Geneva Watch Days event that opens on Monday.

Sales of Swiss watches have rebounded strongly from the 2020 pandemic slump, with the value of exports up 11.4% in the first seven months of 2022.

“For now people’s state of mind stays positive. How long will it last? We don’t know,” said Jean-Christophe Babin, head of LVMH [jewellery and watch](https://www.financedigest.com/kering-cartier-launch-environmental-pact-for-watches-jewellery.html "Kering, Cartier launch environmental pact for watches, jewellery") brand Bulgari.

He said Bulgari was [gaining market share](https://www.financedigest.com/shares-steady-dollar-gains-ahead-of-u-s-inflation-data.html "Shares steady, dollar gains ahead of U.S. inflation data"), seeing “much stronger” growth in its watch business than the rate of Swiss watch exports.

While there were many reasons to be alarmed over the last two years, including the pandemic, the [war in Ukraine](https://www.financedigest.com/ukraine-grants-citizenship-to-top-russian-journalist-who-denounced-war.html "Ukraine grants citizenship to top Russian journalist who denounced war") and inflation, “watch exports are nevertheless close to all-time highs”, Edouard Meylan, head of independent watch brand H. Moser & Cie, said.

We need to take advantage while it lasts, but we have to get ready for a slowdown,” he said, adding [sales were up by more than a quarter so far this year](https://www.financedigest.com/spains-november-retail-sales-fall-0-6-on-year.html "Spain’s November retail sales fall 0.6% on year"), with some bottlenecks for watch cases and straps.

Around 40 brands will take part in this [year’s Geneva Watch Days](https://www.financedigest.com/explainer-international-womens-day-date-history-and-this-years-theme.html "Explainer-International Women’s Day: date, history and this year’s theme"), an informal industry gathering launched in 2020 where exhibits are held in hotels and boutiques around town, making it more accessible than spring’s exclusive Watches & Wonders show.

Although not taking part in this year’s event, Guido Terreni, chief executive of niche brand Parmigiani owned by the Sandoz Family Foundation, said the brand was unable to meet [demand that had risen 4.5 times from last year](https://www.financedigest.com/heathrow-airport-says-return-to-pre-pandemic-demand-years-away.html "Heathrow Airport says return to pre-pandemic demand years away").

Asked when it would break even, Terreni, a [former Bulgari executive](https://www.financedigest.com/wagamama-owner-restaurant-group-names-former-cadbury-executive-ken-hanna-chairman.html "Wagamama-owner Restaurant Group names former Cadbury executive Ken Hanna chairman"), said: “We’re getting there.

The [market for new timepieces remained robust with waiting](https://www.financedigest.com/jittery-markets-attempt-risk-on-rally-while-waiting-for-powell.html "Jittery markets attempt risk-on rally while waiting for Powell") lists for many models, said U.S.-based [retailer Danny Govberg, also co-founder and chairman of watch marketplace WatchBox, echoing comments by British retailer Watches of Switzerland this month](https://www.financedigest.com/advice-for-retailers-as-covid-restrictions-ease-this-independent-retailer-month.html "Advice for retailers as COVID restrictions ease this Independent Retailer Month").

Govberg noted, however, that secondary [market prices](https://www.financedigest.com/eex-markets-to-remain-open-as-power-prices-soar-statement.html "EEX markets to remain open as power prices soar – statement") had fallen.

The disparity between retail [prices and what watches are actively trading](https://www.financedigest.com/belgium-supports-energy-price-caps-suspending-trading-in-eu-power-crunch.html "Belgium supports energy price caps, suspending trading in EU power crunch") for has come down from their early spring 2022 all-time highs, since stabilising,” he said in an emailed comment.

Kepler Cheuvreux analyst Jon Cox said if prices for second-hand [watches](https://www.financedigest.com/siemens-ceo-watching-the-share-price-of-siemens-energy-ceo.html "Siemens CEO watching the share price of Siemens Energy – CEO") fell significantly below primary prices, this could hurt demand for new watches, but that was apparently not the case so far.

(Reporting by Silke Koltrowitz; Editing by Kirsten Donovan)


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