An industry ripe for a shake-up
THE average Swiss watch costs $685. A Chinese one costs around $2 and tells the
time just as well (see chart). So how on earth, a Martian might ask, can the
Swiss watch industry survive? Yet it does. Exports of watches made in
Switzerland have grown by 32% by value over the past two years, to SFr21.4
billion ($23.3 billion). Demand in the biggest markets (China, America and
Singapore) dipped recently, but some of the slack was picked up by watch-loving
Arabs and Europeans.
No one buys a Swiss watch to find out what time it is. The allure is intangible:
precise engineering, beautifully displayed. The art of fine watchmaking has all
but died out elsewhere, but it thrives in Switzerland. “Swiss-made” has become
one of the world’s most valuable brands.
