The Swiss watchmaking industry is pessimistic about their immediate economic outlook, according to the results of a survey by Deloitte.
First conducted in 2012, Deloitte’s annual Swiss Watch Industry Study reports that for the first time, more industry executives are pessimistic (41%) than are optimistic (14%) about the short term future, with smart watches, the strong CHF, and a drop in demand from China and Hong Kong the main causes of concern.
Based on discussions with fifty-one industry executives and an online consumer survey of 3,000 participants in China, Italy, Japan, France, Switzerland and the U.S. between May-July 2015, the key findings are stated as follows :
- Average price of exported Swiss watches peaked at CHF 730
- Pessimism about the economic outlook hits four-year high: 41% of watch executives are pessimistic, only 14% are optimistic.
- External risks are back – The strength of the Swiss Franc is perceived as the greatest risk (69%)
- Smartwatches are an increasing competitive threat
- Significant consumer interest in smartwatches in China, Italy and France, when in Switzerland the percentage is only 17%.
- The rise of digital media: the optimisation of sales channels seen as an important business strategy
The topics surveyed and discussed also include challenges, risks, and the increasingly important digital sphere, including marketing channels and more concern about reputational risks for brands on social media.
To read or download the report, click on this link.