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BASELWORLD

Sufficiently Swiss: at least 60% for watches

Switzerland adopted regulations on Friday requiring that locally-made parts account for at least 60 percent by value in order for watches to bear the coveted and lucrative "Swiss Made" label.

Sufficiently Swiss: at least 60% for watches
Swiss watches on display at the Baselworld16 exhibition in May. Photo: AFP
The government said in a statement that the change, to go into effect on January 1, expands the criteria for judging whether a watch is sufficiently Swiss from just the main mechanism to all parts, and increases the minimum value from 50 percent currently.
   
Citing research that consumers are ready to pay up to 50 percent more for watches that are made in the Alpine nation, the government said the tightening of the regulations was taken “to stem the threat of abusive practices concerning Swiss origin and protect the good reputation of the 'Swiss label' and Switzerland as a manufacturing location.”
   
Watches are a key export earner for Switzerland, bringing in 21.5 billion francs ($22.4 billion, 19.9 billion euros) last year, and the country is home to luxury brands such as Omega, Rolex and TAGHeuer
   
But use of some parts imported from low-cost countries is a common practice in some segments of the industry.
   
In addition to parts and final assembly, in the future the technical development of mechanisms and watches should be done in Switzerland for them to be able to use the Swiss made label.
   
The changes in the regulations also take into account the recent emergence of connected watches.

LUXURY

Swiss watch exports tick ahead nicely in April

Exports of Swiss watches rose nearly 14 percent year on year in April, trade figures showed on Tuesday, aided by strong demand from prime market Hong Kong.

Swiss watch exports tick ahead nicely in April
A giant screen at the stand of Swiss watchmaker Patek Philippe on the eve of the opening of the 2018 Baselworld watch and jewellery show in March. Photo: AFP

“After a relatively calm March, growth moved ahead strongly in April,” the Federation of the Swiss Watch Industry said, noting exports for the first four months of the year rose 11 percent on the same period of 2017 to 6.7 billion Swiss francs (€5.8 billion, $6.75 billion).

March growth had been tepid at 4.8 percent, down on January's 12.6 and February's 12.9.

Read also: Sufficiently Swiss – at least 60 percent for watches

April's recovery of 13.8 percent saw exports hit 1.76 billion francs, driven by a healthy 43.4 percent rise in sales – a six-year high – to Hong Kong, a lucrative Asian market hub.

Other key markets also saw large rises, with exports to China and the United States clocking up increases of 11 percent and 12.8 percent respectively.

Europe was a mixed picture with German sales up 12.8 percent but sliding 14.7 percent in Britain, continuing a recent trend as the United Kingdom wrestles with Brexit.

The global picture has been healthier since a difficult period across 2015 and 2016 saw the sector take a hit after China introduced anti-counterfeiting measures, helping knock back sales of luxury goods.

That fallow period began with 2014 sit-in street protests in Hong Kong, dubbed the Umbrella Revolution, which saw a tail-off in visitor numbers from the mainland to the territory where many Chinese do much of their luxury shopping.

Terror attacks in Europe also had an effect on the European market in hitting tourism.

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