Hong Kong has been replaced by the US as the No. 1 market for Swiss watch exports, with cash-strapped retailers in Hong Kong holding back from placing orders.
According to the Swiss Watch Federation, exports dropped 14.2 per cent in value terms last month, taking the decline for the first seven months of the year to 11.1 per cent.
Exports to Hong Kong fell 33 per cent last month, while shipments to the US fell 15 per cent. This makes the US top importer with a 10.9 per cent overall market share, with Hong Kong slightly behind on 10.7 per cent.
Volumes are down nearly 20 per cent for watches with an export price of less than 200 Swiss francs (US$205), indicating smartwatches may be having an impact.