In a rarely seen role reversal, that segment of the Swiss watch industry which came close to extinction in the 1970s and 1980s is now its driving force. Indeed, mechanical watches are enjoying almost fairytale fortunes. While the trend isn't new, a ten-year perspective sheds a different and revealing light on this success story.
Structural change
Export figures for the last twelve financial years (since 2000) show that mechanical watches have grown faster than quartz, and 2011 is no exception. "As previously observed, mechanical watches have progressed more rapidly, gaining 23% while quartz watches increased by 18%," commented René Weber, an analyst at Zurich-based Bank Vontobel, in a 108-page report on the Swiss watch industry. Mechanically-driven watches accounted for one-fifth of the total number of exported timepieces and almost three-quarters of their value, according to the Federation of the Swiss Watch Industry. With exports bordering on CHF 19.3 billion in 2011, Swiss watchmakers outperformed their previous annual high by 19.2%.
