Annual Report

2023

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Annual Report

2023

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ISSN 1421-7384
The annual report is also available in French and German in paper or electronic format, upon request.
© Fédération de l’industrie horlogère suisse FH, 2024

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Table of contents
The word of the President

4Highlights of 2023

6

The ‘Swiss made’ label for watchmaking- A geographical indication that the FH defends on all fronts

8

Dictionary of Horology - New, fully revised version

9

ISO congress on watchmaking - Biennial meeting10

Regulatory affairs - Main FH activities

11

Panorama of the 2023 activities

12

Improvement of framework conditions

14

Information and public relations19

The fight against counterfeiting

22Standardisation26
Legal, economic and commercial services27

Relations with the authorities and economic circles

28

FH centres abroad

30

The Swiss watch industry in 2023

32

Watch industry statistics

34

Structure of the FH in 2023

38

The FH in 2023

40

The General Meeting41

The Board

42

The Bureau and the Commissions

43

The Divisions and the Departments

44

The network of partners

45

The word of

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the President
Since 2020 at least, wehave learned to live withcrises, conflicts, geopolitical tensions and theuncertainties that arise
from them. Following thepost-Covid recovery, economic prospects havedarkened in Switzerland
too, and the climate of
consumption is longer consistently positive. Shorttime working is again being
raised, despite – paradoxically – a lack of qualified staff. It’sa strange world we live in.
Following the steady pace and record value achieved in 2022,
the growth in Swiss watch exports and the luxury goods market
in general was bound to decline, for two main reasons. First,
the post-pandemic recovery has run out of steam and demandhas gradually returned to normal. Secondly, the economic andgeopolitical context has not improved, to say the least. Despite
all this, 2023 was a positive year for Swiss watchmaking and set
a new record, achieving growth of 7.6%. Once again, we must
pay tribute to the resilience of the sector, while recognising thatdifferent businesses can face diverse realities.
The FH has carried out its activities based on a clear understanding of its members’ interests, as you can see by reading
this report. I am thinking, in particular, of our defence ofthe ‘Swiss made’ designation in Switzerland and worldwide,
the publication online of the new version of the Dictionary of
Horology, the organisation in Switzerland of the ISO congresson watchmaking and the FH›s interventions in the field of
regulatory affairs.

The past year was also a special one for me, having completed
my term of office as President at the end of 2023. I do notintend to look back over the past 20 years that you too have
lived through, with the major changes that have taken place inthe sector. Digitisation and verticalisation have fundamentallychanged how watches are made and distributed, and how
we communicate about them. Some of these changes wereundoubtedly speeded up by the pandemic.
But above all, what I will remember from these 30 years with
the FH, including 21 as President, are the contacts I have hadwith members within the governing bodies or during visits andevents: so many fascinating discussions with inspiring andenthusiastic individuals, from a wide range of backgrounds
but all contributing to the development of our sector. The
latter inspires and attracts admiration worldwide. It is therefore with tremendous pride that I have represented Swiss
watchmaking as part of my duties in Switzerland and throughout the world. I thank the FH’s members for offering me thiswonderful opportunity.
With 2023 and the past 30 years now behind me, it is withdeep gratitude that I pay tribute to the ongoing commitment ofour governing bodies, the indefatigable support of our members and the enthusiasm and professionalism shown by FH
staff in defending the interests of the sector.
Thank you and good luck   !

Jean-Daniel Pasche

Highlights

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of 2023
The FH took action on several fronts internationally in 2023
to defend the ‘Swiss made’ label in watchmaking, particularly in China. It also published the new digital version of
its Dictionary of Horology, after a long and comprehensive
process of revision, translation and formatting. On a different
topic, international watchmaking standards were the centre
of attention at the biennial conference organised by the FH
in the spring. Throughout the year, regulatory affairs withsignificant consequences for the sector occupied specialists
in areas as varied as plans to restrict chemical substancesin the context of the European REACH regulation, a US law
on button batteries and a parliamentary motion related toimporting reptile skins into Switzerland.

8The “Swiss made” label for watchmaking
A geographical indication that the FH defends on all fronts
Defending Swiss geographical indications is a core activity for
the FH. As a sign of impeccable quality, precision and durability, combining tradition with constant innovation, they are theundisputed symbol of Swiss excellence. According to calculations
made by the Swiss Confederation, their intrinsic value amounts
to billions of francs. It is therefore essential to protect them.
As a “guardian” of the ‘Swiss made’ label, the FH has a comprehensive set of ways of combating its misuse effectively. On
the one hand, it takes direct action against companies that use
it unlawfully, whether deliberately or unintentionally, by sending them formal notices to remedy or taking them to court. On
the other, it raises objections to prevent trademark applications
filed by Swiss or foreign businesses from unlawfully including
Swiss geographical indications that could mislead consumers.
Awareness-raising and lobbying campaigns complete the rangeof measures available to it.
The FH takes part in regular discussions between Switzerland
and China on intellectual property rights in this area. In September 2023, there was an official meeting between the Swiss
Federal Institute of Intellectual Property and the Ministry of Tradeof the People’s Republic of China, and in October, a meetingwith the National Chinese Intellectual Property Administration.

High-level representatives took part in both meetings, as well
as a round table with Swiss industry. The FH participated inthese meetings to defend the interests of the watchmaking sector
and recall the importance of Swiss geographical indications, aswell as the fight against copies that infringe the rights of Swiss
watchmaking brands. The responses to these requests by the
Chinese representatives were encouraging and show that theauthorities are aware of the importance of adequate protection
for geographical indications.
At the international level, protection is managed through oriGIn,
the global alliance for geographical indications. This organisation brings together a wide variety of sectors, represented bysome 600 producers’ associations and other institutions from40 countries. The FH is a long-standing member for the ‘Swiss
made’ label for watchmaking. Participants attending the organisation’s general meeting in October 2023, which took place at its
head office in Geneva, were updated on progress towards better
protection of geographical indications, particularly in connection
with artisanal and industrial products. The latter will soon benefit
from new legislation in the European Union. At the end of themeeting, delegates from all over the world had the opportunity tovisit watchmaking museums in Bienne, following a programmeorganised by the FH, and to explore the Gruyère region.

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Dictionary of Horology
New, fully revised version

The new version of the Dictionary of Horology is freely available on the FH website and in a smartphone application.

After a long and comprehensive revision, translation and formatting process, the FH published a new digital version of its Dictionary of Horology. It follows on from the Illustrated Professional
Dictionary of Horology, written by G.-A. Berner and publishedby the Swiss Chamber of Watchmaking in 1961, the supplement
published by the Société du Journal La Suisse Horlogère SA in
1995 and the consolidated version by the FH in 2002, which
many experts still refer to as the “Berner Dictionary”.
A complete overhaul had become necessary to reflect thechanges in technology, and the watchmaking industry in particular. Accordingly, a panel of experts has reviewed 4,800
terms and 950 illustrations to decide whether they should be
retained, amended or removed, alongside the addition of 470
entries. The experts involved have taken care only to retain
and add terms related directly to watchmaking, to make thedictionary a unique work that is entirely dedicated to thesector. The latter often uses specialist terms that are known
only to insiders, which is why it is important to make themaccessible to anyone with an interest in the subject.

Written in French, German and English, the new version contains 6,000 terms and almost 900 illustrations, some of whichhave been deliberately kept in their original style. It is freely
available on the FH website and in a smartphone application.
Particular care has been taken with the interface, especiallyin terms of ergonomics, functionality and navigation between
the definitions and different languages.
The FH would like to express its gratitude to the 30 or so
experts who contributed to the project for their commitment
and support. Special thanks go to those who supported therevision process in its entirety or made a particularly significant contribution: Jean-Philippe Arm, Estelle Fallet, JeanPierre Golay, François Klopfenstein, Bernard Muller, Hélène
Pasquier, Marco Richon, Marlyse Schmid, Antoine Simonin
and Pierre-Alain Vuille.

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ISO congress on watchmaking
Biennial meeting
The 2023 international congress of the ISO committee dedicated to watchmaking (ISO/TC 114) was organised by the
FH and held in Interlaken, Switzerland, in May. Under theleadership of the new President, Raphaël Schwarz, who isalso a specialist in regulatory affairs at the FH, the work of
the delegations from China, France, Germany, Hong Kong,
India, Japan, Mongolia, the United and, of course, Switzerland
contributed to some significant progress.
The opening remarks from Jean-Daniel Pasche, Presidentof the FH, and Marcel Knecht, a member of the Executive
Board of the Swiss Association for Standardisation, emphasised the importance of this international congress and thespirit of cooperation that characterises it, the development ofwatchmaking in Switzerland and worldwide, and the need forharmonisation to which standardisation responds.
Congress attendees explored issues around protecting healthand the environment, which are both important topics for
consumers. The first action in this area will be the creationof a standard to demonstrate compliance with regulated substances in wristwatches.
Numerous discussions focused on potential changes to thecondensation test described in the standard on water-resistantwatches. Despite the obvious conclusions around a possible
improvement to the test, the revision of this standard was
adjourned, since a number of delegations wanted more time
to continue with trials.

The agenda also included four additional tests for the standard
on anti-reflection treatments on watch-glasses. Most delegations wished to continue testing, in particular for resistance toultrasound, before embarking on a revision of the standard.
During the congress, Switzerland presented its research project on standard formulations for cosmetic resistance tests,
which prompted a lot of interest among the audience.
The revision of the standard on photoluminescent deposits reached its final stage, prior to publication in 2024 at
the latest.
The initial work on revising the standard on horological vocabulary dealt with over 70 comments. A number of new definitions
were added, including “smartwatch”.
At the end of the congress, the delegates again took a number of decisions, updated the development plan for the
ISO/TC 114 Horology committee and finalised the wordingof the resolutions. The standard on vapour phase depositedcoatings will thus be revised, a new project on clocks andminiature clocks will be launched and changes to regulated
substances that affect watchmaking will be closely monitored.
The final, traditionally recreational part of the event, whichemphasises the convivial and human aspect of the congress
mentioned by Jean-Daniel Pasche, took the delegates to theJungfraujoch, in the heart of the Bernese Alps. The next meeting will be held in Zhangzhou, China, in 2025.

The ISO/TC 114 Horology international congress brought nine delegations together in Interlaken for a week.

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Regulatory affairs
Main FH activities
The FH was particularly active in the realm of regulatory
affairs in 2023. Among other things, it played a proactive role
regarding regulations likely to have an impact on the watchmaking industry.

REACH restrictions
A project to restrict the use of perfluorohexanoic acid (PFHxA),
its salts and compounds was launched under the European
REACH regulation in 2020. These substances can be present
in several watchmaking applications, such as leather straps andsome galvanic baths, as well as lubricants and epilames. Substitution is a much more complex prospect in the latter two cases.
The FH worked to defend the interests of the sector, settingout its concerns in two position statements. Following theseinterventions, the European Chemicals Agency (ECHA) recommended an exemption for the use of these substances in
epilames used for watchmaking.
The final version of the draft restriction was published in June
2023 and stated that ultimately, lubricants and epilames used inwatchmaking will not be included as part of the REACH restriction, thus maintaining continuity of production in the sector.
Another draft restriction under the REACH regulation, relating
to certain bisphenols, was sent out for consultation in 2021
by the German Federal Institute for Health and Safety at Workand the German Federal Environment Agency, raising major
concerns, especially in the leather industry.
The FH took part in the debate on restricting bisphenols, sending position statements to the instigators on two occasions,and putting forward three key points. First, it pointed outthat the 10 mg/kg detection limit for bisphenols in leather
was technically impossible to achieve and that it needed tobe adjusted to 1,000 mg/kg to comply with the addition ofbisphenol S to the authorisation process. Secondly, the transition period should be extended from five to ten years forleather products. Thirdly, the FH raised the importance ofretaining an exemption for pre-existing stocks.
After consultation, the draft restriction was withdrawn inAugust 2023. The German authorities then set themselves
the goal of reviewing and submitting it at a later date, with-out indicating a precise deadline. The ECHA stated that any
amendment to the initial draft must be justified.

Reese’s Law in the United States
The US “Reese’s Law” was promulgated in 2022. It aims toprotect children aged six or under from ingesting button batteries, whether they are sold separately or built into products.
As a result, the US Consumer Product Safety Commission was
tasked with developing a rigorous standard, including technicalcriteria and warnings to consumers.
The FH played an active role throughout the process, including speaking alongside the American Watch Association, at a
crucial meeting in Washington. A technical demonstration of
the various systems used for sealing the battery compartmentsof electronic watches was given during the meeting. This was
an opportunity to demonstrate the safety of these systems inperson and highlight the problematic aspects of the proposed
new standard.
The final version of the rule was sent out for consultation in
August 2023. This introduced a distinction between products
intended to be opened by consumers and those designed to
be opened by professionals, as requested by the FH. However,products that require the use of crosshead or flathead screws
do not meet the second criterion. The issue was still underdiscussion at the end of the year.

Parliamentary motion on reptile skins
A parliamentary motion, put forward by Martina Munz (PS/SH)
in 2019, aimed to impose a declaration system for the animal
species, origin and provenance of reptile skins. The FH has
actively opposed the motion for several years, arguing thatthe requirements imposed were disproportionate. In practice,most imported products already comply with the Convention on
International Trade in Endangered Species of Wild Fauna andFlora and the recommendations of the World Organisation for
Animal Health Terrestrial Code, which have similar objectives.
Following a recommendation issued by the Science, Education
and Culture Committee of the Council of States, members ofparliament ultimately decided to reject the motion The impact
analysis of the regulation, to which the FH made an active
contribution, played a crucial role in this decision.

Panorama of the132023 activities
As the leading organisation for Switzerland’s third-largest exportindustry, the FH has many objectives: improving the underlying
conditions in the sector in Switzerland and the rest of the world,
dealing with the challenge of counterfeiting and, for example,
supporting its members and keeping them – as well as themedia and consumers – fully informed. The following pages
present a selection of actions carried out by the Federationin 2023.

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Improvement of framework
conditions
In 2023, the FH pursued its objectives of defending the interests of the sector in Switzerland and internationally. It was
active in numerous markets, from engaging in negotiations on
new free-trade agreements to revising existing ones, during
official missions or in response to requests from members.
Among other things, it took part in several joint committees.
These are instituted by each free-trade agreement and are
responsible for managing the agreements and ensuring they
are properly implemented. In principle, they meet every
two years.
The FH took action in around 20 markets, including Mercosur,
India, Turkey, the Philippines, the member states of the Gulf
Cooperation Council, Mexico and Kazakhstan.
Market access conditions, technical or administrative regulations, technical barriers to trade, the organisation of distribution,

the protection of intellectual property rights and even temporary
imports were among the main areas of intervention. Whenevernecessary, the FH submitted its requests to the ministries concerned as memoranda.

Mercosur
Negotiations between the European Free Trade Association(EFTA) and Mercosur (Brazil, Argentina, Uruguay andParaguay) were essentially completed in 2019. The agreement
should allow 96% of Swiss exports to Mercosur countries tobenefit from tariff concessions in the medium term. Theoretically, these will result in savings of around 180 million francs per
year, i.e. the most significant potential savings of all free trade
agreements entered into by Switzerland, except for those ith theEuropean Union and China.

Meeting between Tarcisio de Freitas, Governor of the State of São Paulo, and Guy Parmelin, Federal Councillor.

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The pandemic caused a significant delay in the examination of
the negotiated texts from a legal standpoint, so the purpose ofFederal Councillor Guy Parmelin’s official visit to Brazil in July
was to restart the process that should result in the signatureof this agreement.
The FH joined the trip because the potential of the Brazilian
market alone remains largely untapped from a watchmaking
perspective. Access and marketing conditions in the country
are challenging in many respects, including a very high level of
duties and taxes, as well as import procedures and distribution
regulations. All these obstacles push a significant number ofBrazilian customers to buy abroad and as a consequence,certain brands have had to reevaluate their presence in themarket in terms of investment and sales networks. All of thisworks against the domestic market.
Indeed, the figures for watch exports to Brazil remain modest: 41 million francs in 2022 and 44 million in 2023, theequivalent of exports to Colombia. In particular, they are well
below exports to Mexico (250 and 290 million respectively),with which a free trade agreement has existed since 2001.
A significant opening up of the Brazilian market, and Mercosur
as a whole, remains a prerequisite not only from the perspective of business development in this part of the world, but also
in terms of providing economic actors with the necessary
legal framework and certainty. This is all the more important
insofar as the Brazilian luxury goods market alone is expected
to increase by 6 to 8% per year until the end of the decade.

India
The negotiations on a potential free trade agreement between
Switzerland – on behalf of EFTA – and India, which had long
been on hold, accelerated significantly at the end of the year.
There are several reasons for this. First, New Delhi is involved
in identical negotiations with the European Union and theUnited Kingdom, and it is important to ensure that the Swisseconomy is not subject to any de facto discrimination in the
Indian market compared with its competitors. Secondly, thenext Indian parliamentary elections, which take place in spring
2024, leave a very short, but important, window of opportunity
to conclude the negotiations. If they were not concluded, ahypothetical new round of negotiations would undoubtedly
be postponed for an indefinite period.

At the 21st round of negotiations in New Delhi; left toright: Markus Schlagenhof, Federal Council delegate; Guy
Parmelin, Federal Councillor; Piyush Goyal, Trade andIndustry Minister; Helene Budliger Artieda, State Secretary;
L. Satya Srinivas, Secretary to the Department of Trade.
The FH is following the negotiations closely, in conjunction with
the State Secretariat for Economic Affairs. The objectives andpriorities of the watchmaking industry have long been known
to the Swiss negotiators. They concern first, opening up the
Indian market to Swiss watches (customs duties are currently
20%) and secondly, improving the protection of intellectual
property rights, including those involving geographical indications (Swiss made). By the end of 2023, the negotiations
had entered their final phase but no details of the terms of
the agreement had been revealed.

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TurkeyThe first meeting of the joint committee for the agreement
between EFTA and Turkey provided an opportunity for the FH
to highlight the persistent difficulties it faces concerning theprotection of intellectual property rights. While it is true thatthe local authorities strive constantly to improve the legislationand its application, Turkey is still a market where the supply
of counterfeit Swiss watches is high, especially in Istanbul
and numerous tourist locations. The country also acts as a
hub for counterfeit products from Asia and the Middle East
heading for Europe.
The fight against counterfeiting remains a challenge. In practice, obtaining search and seizure warrants from various jurisdictions is often problematic, if not impossible in certain cases.
Given that the availability of police units for raids is limited,brand owners often have to call on private investigators to
identify their targets. Moreover, the sanctions imposed on
offenders are not sufficient to act as a deterrent, given that it
is not possible to seize assets and that recovering damages
is almost impossible.

Philippines
The FH took part in the joint committee on the agreementwith the Philippines for the same reasons. We should recall,once again, the necessity of the authorities intervening in a
number of areas of concern, such as the Greenhills Shopping
Center in Manila, where over a hundred permanent or temporary stands offer tens of thousands of fake Swiss watches
for sale with impunity, ably assisted by the lax attitude of theowners of the premises.

Gulf Cooperation Council
Despite the significant flexibility shown by Swiss watch exporters, it must be said that the application of the agreement withMember States of the Gulf Cooperation Council (Saudi Arabia,
Bahrain, United Arab Emirates, Kuwait, Oman and Qatar)
remains problematic.
The difficulties lie essentially in the administrative requirements associated with accompanying documents and customs clearance for goods, and even in relation to productcompliance certificates. To take one example, the declarationof origin on an invoice is not always accepted for approved

exporters, even though this provision is written into the agreement. This situation alone means that instead, exporters haveto provide EUR.1 movement of goods certificates, as well as
certificates of origin, depending on the destination markets.
Other complications relate, in varying degrees, to non-recognition of digital documents or the establishment of packing
lists, among others.
The FH has submitted a detailed report of all these problems
to the Swiss authorities, with a view to a special meeting of thejoint committee, scheduled for early 2024. In addition to theprocedures themselves and the additional costs they create,
the key issue at stake is compliance with the provisions of
the signed agreement.

RussiaThe FH has remained in permanent contact with the State
Secretariat for Economic Affairs regarding the evolution ofEuropean and Swiss sanctions against Russia. Indeed,
Switzerland decreed additional sanctions in the wake of theEuropean Union during the year under review.
Restrictions relating to watchmaking initially affected the importand export of certain steel products. Insofar as certain components do not fall under the watchmaking section of the customs
nomenclature but instead, are governed by the material they are
made from (such as items made from cast iron, iron or steel),general-purpose screws and supplies intended for watch cases
or watchmaking cages and cabinets, among others, were subject
to a factory test for a period to provide evidence of the absenceof Russian steel. Without such evidence, some shipments forafter-sales service purposes were blocked from entering various
European markets during the autumn. Following an intervention
from Switzerland, the EU amended its own sanctions to introduce
equivalent treatment for our country, which quickly removed thisobstacle to trade between Switzerland and the EU.
The 12 th package of European sanctions, which came into
force on 19 December 2023, also introduced various bansconcerning the trade in Russian diamonds. These will comeinto force in stages in 2024. Ultimately, all diamonds originating in or exported from Russia (or having transited through it),whether they are natural or synthetic, raw or processed in athird country, of 0.5 carat (0.1 gram) or more in weight, will bebanned from purchase or import. Watches made from precious
metals incorporating diamonds are explicitly targeted by the
new sanctions, as are jewels.

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Diamonds with a link to Russia, including those set in watches made from precious metals, are affectedby sanctions.

By agreement with the G7 (United States, Canada, Japan,
United Kingdom, Germany, France and Italy), a verificationand certification mechanism will be implemented within theEU, which will act as a gateway for the EU and G7 countries toensure traceability of the products concerned.

The application of the agreement has proven delicate, however, with the authorities claiming an exception that had been
intended for particularly complex cases from the very first
seizure. The change of government, followed by the pandemic,
suspended activities for several years, preventing any new
operations on the ground.

MexicoIn October, the FH took part in a session of the Switzerland-Mexico joint economic committee with a view torelaunching the initiative. Each party appointed a contact
person to reopen the dialogue. Initial contact has alreadybeen made and the prospects for implementing the agreement remain positive.

In 2016, the FH signed an agreement with the Public Prosecutor’s Office in the Republic of Mexico to improve cooperation in the fight against counterfeiting. One of the main
objectives was to find an alternative to the provision of original
watches, demanded by the country’s authorities, to provethe counterfeit nature of the items seized. This requirement
creates multiple problems, particularly in light of the value ofthe items concerned.

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Kazakhstan
After being in constant contact with the State Secretariat
for Economic Affairs and the Precious Metals Control Officeduring the negotiations, the FH welcomed the entry into
force, on 1 April 2023, of the agreement between Switzerland
and Kazakhstan on reciprocal recognition of official hallmarks stamped on items made from precious metals. The
latter provides easier access to the Kazakh market for items
made from precious metals by the Swiss watchmaking andjewellery industry.

Switzerland
Removal of customs duties on industrial products
The main aims of Switzerland’s autonomous decision toremove customs duties on imports were to combat the country’s reputation for high prices, reduce obstacles to tradeand limit the burden on businesses, and to help strengthen
Switzerland as an economic and industrial centre as a result.
The removal of duties, which was supported by the FH, should
result in a theoretical saving of approximately 860 million
francs a year for the Swiss economy as a whole (including customs duties, administrative simplifications and indirect effects).
All customs duties related to imports of industrial products
were reduced to zero from 1 January 2024. These include
not only watchmaking products but also presentation cases,
clasps and batteries, as well as machinery, electrical equipment and printed advertising material, among others.
The removal also impacts other customs arrangements.
Among other things, it simplifies Swiss customs tariffs, withsome tariffs being merged. Future import and export declarations must therefore be based on the new structure of Swisscustoms tariffs. The changes for watchmaking are minimal
and relate to less important information. They concern alarm
clocks and table clocks, parts for watch cases, and watchmaking cages and cabinets.
In terms of the customs clearance process, the obligation to
declare and submit documents remains, given that Passar, the
new management of goods traffic system of the Federal Officefor Customs and Border Security (FOBCS), will subsequently
be simplified and streamlined in this area. Proof of origin is
no longer required for imported goods remaining in Switzerland. Conversely, it is still needed when the imported goods

are to be combined or re-exported. Whatever the scenario,
and regardless of the customs requirements, importers arestill advised to ask foreign suppliers for proof of origin. From
1 January 2024, it has been possible to store this informationin digital form.

Revision of the Customs Act
The revision of Swiss customs legislation continued during
the year under review, in conjunction with the FOBCS transformation and digitisation programme.
A complete overhaul is required so that processes and systems are simplified, harmonised and digitised across theboard. More generally, the revision also aims to harmonise
the performance of the FOBCS’ tasks, including the professional profile of customs officers, data protection, risk analysis
and migration. All tax and other legislation connected to the
FOBCS’ tasks also need to be revised.
During the consultation procedure, the FH shared its views on
matters including the FOBCS’ commitment to the protectionof intellectual property rights (for example, the treatment ofseized goods), the distribution of tasks between the FOBCSand the Precious Metals Control Office, and the protectionof business confidentiality.
In early June, the National Council agreed to continue the work,
while the preparatory commission recommended a referral
to the Federal Council. The matter therefore returned to theCommittee for Economic Affairs and Taxation of the National
Council and a detailed examination began in the autumn.

Consultations on the economic situation
The FH took part in regular surveys organised by the State
Secretariat for Economic Affairs and economiesuisse on thechanges in Switzerland’s economic situation, in light of developments in business, employment and investments, as wellas the post-Covid recovery and the consequences of the war
between Russia and Ukraine. It also participated in two roundtables convened by Federal Councillor Guy Parmelin, aimed
at taking stock of the export situation.

19

Information and public relations
Media relations

watch.swiss

The media showed a strong interest in the development of thesector over the last year, with numerous requests for articles
and interviews. All Swiss media (TV channels, national or local
radio and the press), but also foreign media, such as the New
York Times and Agence France Presse, monitored trends inthe sector with close attention, particularly at the watchmaking
trade fairs (Watches & Wonders, Time to Watches, Geneva
Watch Days, EPHJ and the Technical Watchmaker Show). In
addition, Swiss-Italian radio and television produced a programme on watch sales and counterfeiting as part of the
Fàla series.

For the third year running, the strategy for promoting Swiss
watches deployed by the FH focused on two main areas: thephysical and digital exhibition watch.swiss and publishing content on social media, naturally with links between the two.
The watch.swiss exhibition ran twice in Europe during theautumn of 2023. The first was held in Denmark and the second in Switzerland, each for around ten days. Both events
received a particularly enthusiastic welcome. At the same time,the version of the exhibition dedicated to the Japanese market,
watch.swiss Japan, was presented at two events during the year
(see the section on FH centres abroad, page 31).

The year concluded with an interview with ATS/AWP, in which
the president of the FH looked back over the previous 12
months and outlined the prospects for the sector.
The president also gave several presentations and speeches,
including at the ISO/TC 114 Congress and at the EPHJ, Time to
Watches and Technical Watchmaker Show trade fairs. Furthermore, he spoke at the General Meeting of the Swiss Tourism
Federation to mark the 50th anniversary of the Contrôle officiel
suisse des chronomètres (COSC), and, as he does every year,
to pupils at the French secondary school in Bienne.

Revue FH
The Revue FH offered its readers an extensive overview of Swissand international watchmaking news in all of its 18 issues in
French and English. FH activities, export statistics, news fromwatchmakers and subcontractors, new products and extracts
from the trade register all featured in the pages of the magazine. Highly popular with both readers and advertisers, theRevue FH is also available to FH members and subscribers in
its electronic version.

WebsiteRegarded as a reference for matters relating to the watch
industry, the FH website attracted large numbers of visits in
2023, with millions of pages viewed. It is also an important
information source, reporting on the latest developments at
the FH, watch companies and new product launches. The
website also provides export statistics, updates on the ‘Swiss
made’ label and information on counterfeiting problems,
among other things.

Young visitors in Sweden were interested in the exhibition
and the competition to win a Swiss watch.

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The Nordic countries represent only a small proportion of
Swiss watch exports, with just over 200,000 watches in
2023. Nonetheless, consumers in these markets have a highlevel of purchasing power and it was a good opportunity forwatch.swiss to meet them, particularly the younger generations.
The exhibition venues chosen were a perfect match for thewatch.swiss criteria, particularly in terms of offering excellent
access to the target audience. The Fisketorvet Mall is locatedin a dynamic urban district of Copenhagen, with a high population density, and welcomes over eight million visitors ayear. In addition, collaboration with a store in the Carat chain
there and the brands Certina, Longines and Tissot enhanced
the exhibition with a fine selection of Swiss watches. Thiskind of partnership helps connect the educational aspectof watch.swiss to products currently available on the market and strengthens the promotional message. Turning to
Sweden, the Gallerian Mall is the best-known shopping centre
in Stockholm, thanks to its unique location in the city centre.
It welcomes almost 12 million visitors a year, including both
local customers and tourists. As in Denmark, a local retailer,
Stjärnurmakarna, joined the event and presented a range of‘Swiss made’ watches.
The level of visibility offered by these unique locations
provided the perfect setting for the watch.swiss experience.
Facebook and Instagram campaigns alongside the event,
as well as a competition to win a watch, helped extend thereach of the exhibition’s key messages. The stated aim wasto enlarge the digital community and strengthen interactions
with visitors. A positive review at the end of the operation
indicated that the campaigns had reached 213,000 people,
with over 100,000 interactions with the various forms of content published.
The FH also maintains its promotional activities on Facebook
and Instagram all year round. The digital strategy is adjusted
regularly to reflect the rapid changes in trends seen on social
media and their complex algorithms. The aim is to reach the
public in particular target markets by offering high-quality,
attractive, exclusive, tailor-made content. As a result, the FH
reached out over the course of the year to ten of its members(RB Baumgartner, Delance, Raymond Weil, Audemars Piguet,
Alpina, Charles Girardier, Oris, Richard Mille, Claude Meylan
and Norqain), as well as to a passionate collector of Swiss
watches, to create this content. The main focus was on people
who are active in all areas of each business, who convey their
passion and enhance the content with the emotions conveyed
by their products.

Ultimately, around 15 videos and 500 photos were produced.
Two million people were reached by the various campaigns
and almost 1,700 new Instagram subscribers came on board.
There were also over 230,000 video views, demonstrating
significant interest.

Watch industry statistics and market trends
Watch export statistics are produced monthly by the Swiss customs authorities. These official data, broken down by markets,materials and price segments, provide detailed, regular monitoring of trends in the sector. They also provide an information
source and basis for comparison for the brands. At the same time,modelling of their historical trends, including advanced macroeconomic indicators, helps calculate medium-term forecasts.
The analysis of the watch market and its prospects incorporates customs statistics and numerous other elements, such as
trends in the luxury sector, the data available on sell out, trends
in the secondary market, the consumption patterns of different
generations, the economic context, digitalisation and corporatesocial responsibility.
Permanent monitoring of these factors is sent to all interested
FH members every week in a newsletter, which draws on multiple sources to summarise the latest updates in a dozen areas
connected to the watch market.
All this information is incorporated into a more detailed analysis,
which is distributed quarterly through the business magazine,
Tendances. The trend in the watch market in 2023 was marked
by the return to positive results in China and Hong Kong, strong
demand for luxury personal items – especially watches – andconfirmation of the significant recovery seen in the entry-levelsegment since the spring of 2022.
A widely distributed half-yearly press release supplements theinformation that the FH communicates on watch industry statistics and market trends.

Berner Dictionary
The FH made the latest updates to the Dictionary of Horology,
commonly known as the “Berner Dictionary”. Its new, fully
revised version was published online on the FH website at
the end of 2023, along with a smartphone app. Full details of
this project can be found in the Highlights chapter on page 9.

21General Meeting
The FH General Meeting 2023 took place at the Congress Centre in Bienne, with a large audience in attendance. All itemson the agenda required by the articles of association were
accepted, including the election of the new President of theFH from 2024, Yves Bugmann. Attendees then had the opportunity to listen to a presentation by Philippe Zahno, head of
public affairs at Svizra27, on the theme of “Svizra27 National
Exhibition Project: work, people and cohesion”.

The last General Meeting chaired by Jean-Daniel Pasche took place in Bienne.

22

The fight against counterfeiting
Scope of activities
The FH pursued numerous activities in 2023 to prevent counterfeiting on behalf of members of the Anti-Counterfeiting Groupand the Internet Unit. These are detailed in a separate report,
which is available on request to anyone with an interest in the
topic, and are summarised here.

Seizure operations on the markets
Saudi Arabia
The programme of activities in Saudi Arabia continued in 2023
in light of the positive results achieved there the previous year.
The police and officers from the Saudi Authority for Intellectual
Property conducted around a dozen searches, mainly on thebasis of investigations led by local FH representatives. These
operations resulted in the seizure of around 128,000 counterfeit Swiss watches.
Fourteen operations were carried out in parallel at the country’s
borders, by the Saudi customs authorities, with around 23,000
fake Swiss watches seized.

BrazilThe Brazilian fraud prevention department organises largescale raids in the “25 de Marzo” area of São Paulo every
two years or so. This is a popular shopping street, known for
overflowing with counterfeits of all kinds. Two shopping centres, the Boulevard Monti Mare mall and Shopping Veneza,
were targeted in an operation to seize counterfeit goods inlate November.

Showroom offering fake Swiss watches for sale in
Saudi Arabia.

A number of sellers were able to remove the disputed products from their shops, probably as the result of an information
leak. As a result, the quantities seized were less significant
than planned. Nonetheless, counterfeits were discovered in
two places, as well as in the car of a seller of fake goods inthe shopping centre car park. In addition, a number of trading
licences were withdrawn, calling at least a temporary halt to
fraudulent activities.

Egypt
Around ten raids were carried out by the Egyptian police authorities in 2023, resulting in the seizure of almost 30,000 fake
Swiss watches. The police, in conjunction with FH representatives, initially took action against a seller of counterfeit goods
in Cairo, resulting in the seizure of almost 12,000 fake Swiss
watches and 1,000 counterfeit display cases.
Other operations also took place throughout the year, mainly
targeting stores in Cairo, with several thousand confiscateditems at stake.

Malaysia
The FH embarked on its first actions in Malaysia during theyear under review. Six raids took place in a market in Kuala
Lumpur during the first half of the year, leading to the seizureof just over 2,200 fake Swiss watches.
Another operation, in the north of the country, targeted a seller
who was active on Facebook Live and Shopee. Although thequantities seized were relatively small (40 items), this action
showed that it was also possible to act against online sellers.

Numerous counterfeit models are offered for sale inSão Paulo.

23

Finally, a raid was carried out in the Sungai Wang Plaza shopping centre in Kuala Lumpur. Just 20 counterfeit items were
found, probably because of an information leak. Some sellersof counterfeit goods on Petaling Street had, in fact, closed theirdoors that day, for no apparent reason.

Training for the authorities
Training for the authorities is one of the FH’s essential activities
in relation to combating counterfeiting. It aims not only to raiseawareness and teach them how to distinguish genuine watchesfrom fakes, but also make cooperation with rights holders easierby developing the right instincts to enable items to be identified
quickly. Analysing fake watches is becoming increasingly complex in light of the constant improvements in quality.
The FH took part in several training seminars in 2023, in Argentina, Belgium, Bulgaria, Egypt, Greece, Hungary, the Netherlands, Peru, Poland, Qatar, Romania, Saudi Arabia, Singapore,
Spain and Turkey. Over 2,000 police and customs officers, aswell as judges and officials from intellectual property organisations around the world, were therefore made aware of the
problems associated with counterfeit watches.

A stock of fake Swiss watches in Kuala Lumpur.

The FH has produced short videos for police and customs
authorities to strengthen its training activities. These visual aids
illustrate the procedures to follow when taking photographsof seized watches. These images are essential for identifying
items and are used for expert appraisals in over 90% of cases.
Their quality is therefore critical. Other videos will be produced
in response to the initial positive feedback.

Actions on the internet
The fight against the sale of counterfeit items reached newheights in 2023. Although the threshold of one million withdrawals of advertisements had been reached in 2016 to 2020,
the bar had fallen back to 850,000 in 2021 and 2022. This
reduction can be explained largely by two factors. First, counterfeiters are employing increasingly sophisticated strategies toconceal their products. Secondly, sales platforms are imposing more stringent requirements for removing advertisements.
Despite the tougher conditions, the FH again achieved a seven-figure number of withdrawals in 2023. Special efforts havebeen made to automate the analysis of counterfeit items andthe notification process as far as possible. As a result, over a
million advertisements were withdrawn from e-commerce andNumerous representatives from the police and customs
authorities took part in the training delivered by the FH
in Spain.

24social media platforms. The average sale price for fake watches
is 224 Swiss francs and the average quantity of items in stockfor each advertisement is 186.
Several online sales platforms drew the attention of the FH in
2023, including:•
Shopee and its 11 platforms operating in Asia andSouth America, which advertise a significant quantity ofcounterfeits;•
Avito, a Russian platform that has shown no sign ofimproving its proactive measures;•
Pinduoduo, a leader in e-commerce in China, which has
implemented substantial improvements in its notification
process.
In terms of combating websites dedicated to counterfeit watches,
highly effective surveillance continued thanks to WebIntelligence, the bespoke system developed by the FH. Hosting
providers who do not respond to the usual formal notices toremedy are identified and are subject to more detailed investigations. So-called robust domains, which resist notices toremedy, are included in actions to seize domain names. The
latest action of this kind was completed at the start of the year
and resulted in blocking almost 300 domain names previously
used by counterfeiters. In parallel, the FH also participated inEuropol’s In Our Sites operation, which consisted of seizing
domains with a national extension of the countries taking partin the operation. Finally, a criminal investigation by the Italian
Guardia di Finanza, to which the FH contributed by supplying investigative information, led to the seizure of 40 websitesthat were advertising thousands of counterfeit products online,
including fake Swiss watches.
The FH also turned its attention to new technological developments, such as generative AI (artificial intelligence) and therisks it represents for rights holders. Discussions are currently
underway on incorporating the underlying technologies, suchas machine learning, in its counterfeit recognition processes.
On legislative matters, the FH took part in an Organisation for
Economic Co-operation and Development working group aimed
at establishing a general recommendation to combat counterfeits on online platforms. The European regulation on digital
services was also closely monitored. The regulation, whichcame into force on 16 November 2022, provides for uniform
rules governing the rights and responsibilities of digital services,
especially for sales platforms, on handling illegal and/or harmful
content. Finally, and as it does every year, the FH contributed todeveloping the Notorious Markets List, published by the Officeof the United States Trade Representative. Published in 2023,
the blacklist included TikTok, AliExpress, Meta and Snapchat,among others. The aim of this consultation is to identify which
foreign countries should be monitored as a priority from an
intellectual property perspective.
The FH was also active in the field, and carried out investigations of significant distribution networks. It cooperated with theauthorities of several countries with the aim of bringing those
responsible to justice.

Technical analyses
FH experts carried out 118 detailed analyses of watches in2023 and noted a marked improvement in the details and aesthetics of counterfeit items. The inscriptions on movements andfinishing of polished surfaces are much more refined. Similar
improvements are found on all external parts, making identification from an image increasingly complicated.

Seizures processed and joint intervention
requests in Switzerland
The year under review was marked by a 16% increase in seizures processed (1,722 compared with 1,487 in 2022). The
number of official declarations of counterfeits also rose by 16%(612 compared with 527 in 2022). In total, 1,532 were seizedat Swiss borders, postal and tourist traffic combined.
In terms of joint intervention requests by the FH, there were
695 cases covering 921 items, with an average of 57 cases
per month. The number of countries of origin for products
seized by the customs authorities soared to 46, comparedwith 28 in 2022. This figure can be explained by the recovery
in tourist traffic. China and Hong Kong represented 59% of
the origins declared, and Turkey 6%. The Netherlands andLithuania, which are still being monitored, represented 6% and
4% respectively.

Hong Kong Watch & Clock Fair
2023 saw the return of monitoring activities at the Hong Kong
Watch & Clock Fair. Thirty-six complaints were filed in total, allrelating to infringements of registered designs. All the requests
were approved by the lawyers on the fair’s panel.

25

120
100
80
2021

60

2022
2023

40
20
0

Jan
janv

Feb mars
Mar
févr

Apr
avr

May
mai

Jun
juin

Jul
juil

Aug sept
Sep
août

Oct
oct

Nov
nov

Dec
déc

Number of seizures carried out on behalf of members of the FH Anti-Counterfeiting Group in thecontext of Swiss joint intervention requests.

New developments
Moissanite, a material made from silicon carbide, which issometimes used to imitate diamonds, attracted the attentionof FH specialists. The manufacturing process is complicatedand onerous, but the result achieved, a very high-quality crystal,is capable of deceiving the thermal conductivity testers commonly used. Counterfeiters have mastered the process, withthe clear aim of deceiving customers and increasing the priceof counterfeit products. However, the market remains limited.
The FH has also been concerned with the personalisation ofbranded watches, especially Japanese makes. The transformation of external parts copies certain well-known Swiss watchmaking designs. Although these items could be the subject oflegal proceedings (for copying the design or unfair competition),
it is very difficult to tackle them, because the changes madediffer somewhat from the original registered models and thetrademark is never reproduced. Nonetheless, the FH continues
to pay close attention to developments in this field.

26Standardisation
With the help of its Standardisation Committee, the FH coordinated and contributed to the progress of several national,
European and international projects.
The main projects in the area of national standardisation were
the revision of NIHS 96-50, which deals with resistance tochemical and climatic agents, the translation into Germanof all NIHS standards and the creation of three new working
groups, namely “Responsible procurement of precious metals
and recycled gold”, “Life cycle analyses methodology” and“Roughness in watchmaking”. The Gemology for watchmaking
working group was particularly active, mainly in developinga standard for small diamonds. As a member of the World
Jewellery Federation (CIBJO) since 2021, the FH had its firstchance to attend the CIBJO Congress, which was held in Jaipur, India. This was an opportunity to emphasise the priorities
of Swiss watchmaking and defend its interests, particularly
with regard to diamonds. Accordingly, the FH stressed thenecessity of a unique identifier to distinguish laboratory-grown
and natural diamonds.

As a member of the World Jewellery Federation since 2021,
the FH played an active part in its 2023 Congress.

The FH is tasked by the Swiss Association for Standardisation(SNV) with providing the secretariat for the interdisciplinarycommittee INB/NK 164 - Jewellery and Precious Metals, aninstitution that mirrors the four corresponding committees at
European and international level. Working in cooperation withthe appointed experts, the secretariat is therefore responsible for acting on the votes initiated by these committees andthen forwarding a representative position statement for thewhole of the Swiss industry to the SNV. Around 10 votes werecoordinated and two plenary meetings held during the year
under review. These covered the follow-up to draft standards,
in particular those affecting the watchmaking industry more
directly. The FH also provides the secretariat for the committee that deals with diamonds, and which finalised a draft
standard on control of their quality.
The highlight in international standardisation in 2023 was the
ISO/TC 114 - Horology international conference, which the FH
organised in Interlaken, with several projects moving forward.
Studies and tests on the potential for improving the condensation test of standard ISO 22810 - Water-resistant watches
continued. The sub-committee on luminescence completed
its work on revising standard ISO 17514 - Time-measuring
instruments – Photoluminescent deposits – Test methods andrequirements, prior to its publication in early 2024. With regard
to watch glasses, the Swiss delegation reaffirmed its wish tolaunch a consultation on the potential addition of a number of definitions and four tests to standard ISO 14368-4 on
anti-reflective treatments, to check for resistance to scratching, wear, ultrasound and cosmetic products. The revisionof standard ISO 6426-2 - Horological vocabulary - Part 2:
Technical and commercial definitions began, with several new
definitions to be incorporated. It was decided to revise standard ISO 16253 - Watch-cases and accessories - Vapour phase
deposited coatings, and the corresponding sub-committee
was tasked with coordinating the work in conjunction with
precious metal coatings. It should also be noted that the draft
standard on harmonising regulatory compliance standards
has made good progress and could be completed in 2024.

27

Legal and economic services
Several services are available on the FH extranet site. These
are reserved for its members, giving them access to privileged information and useful working tools. Topical news
items linked to FH activities or matters of direct concern tomembers are updated regularly. Five subject-specific newsletters, on the fight against counterfeiting, both online and in
the field, trends in the watchmaking market, standardisation
and regulatory affairs form part of this information.

Legal services
The legal framework in which businesses operate in Switzerland and internationally becomes slightly more complex everyday. In the United States, watches with a button cell battery
are faced with new legislation in the form of “Reese’s Law”,
which is about improving the safety of battery compartments
to avoid young children ingesting a battery by accident. Fulldetails of this legislation can be found in the Highlights section.
While the United States is focusing on making the battery
compartments of electronic products as safe as possible, thetrend in the European Union is moving in an entirely different direction. In fact, as part of its efforts to combat planned
obsolescence, the EU is arguing for consumers to have easieraccess to batteries so that, ideally, they can replace themthemselves. These two diametrically opposed points of view
clearly pose a problem for many manufacturers of these products. The FH has sent several position statements on this topic
to US and European legislators to defend the sector’s interests.
New developments on corporate social responsibility create an additional burden for businesses. In Switzerland, theOrdinance on Due Diligence and Transparency in relation toMinerals and Metals from Conflict-Affected Areas and Child
Labour requires some companies to report on these mattersand on non-financial issues. The extremely fast-moving developments in the EU are also of significant interest to Swiss
watchmaking, given the supranational effect associated with
European regulations. The European Corporate Sustainability
Reporting Directive now sets out a framework for businesses’
obligations in this area. Meanwhile, the future European Corporate Sustainability Due Diligence Directive will focus on
responsible corporate behaviour.
The FH also supported the implementation of the new Swissdata protection legislation, in 2023. Following changes inthe EU, Switzerland has adopted new regulations in this area,
which sometimes require Swiss companies to make internalchanges. The FH prepared a guide for its members in theform of a check-list, to help them understand the new issues
and incorporate the changes into their operational processes.
The FH dealt with multiple projects and questions from its
members throughout the year. Its lawyers addressed issues
ranging from the ‘Swiss made’ label to rules of origin, therevision of the law on cartels and the Federal Act on Patents
for Inventions, problems of Swiss watch brand infringements
in China and the revision of the Federal Act on Combating
Money Laundering, among others. Interested FH members
received regular information on new developments in theseareas through the regulatory affairs newsletter.

Economic services
FH members have access to extensive statistical and economic information, particularly through the extranet site. This
provides access to the complete database of watch export
statistics, quarterly analyses of trends in the market in the
publication Tendances and information on exports from othermajor global players. Members can also sign up to receive
the weekly Tendances newsletter, which focuses specificallyon the watch market.

28

Relations with the authorities andeconomic circles
Swiss authorities
The FH intensified its contacts with the Swiss authorities toprovide regular updates on the sector in light of market uncertainties. It also set out its expectations in relation to foreign
economic policy, particularly in the context of the extra-parliamentary commission on economic policy chaired by theState Secretariat for Economic Affairs.

economiesuisse
As an active member of economiesuisse, the FH is represented on the following bodies:◆◆

General Meeting: Jean-Daniel Pasche (FH)
Board: Thierry Kenel (Swatch Group), Me Theda Koenig
Horowicz (Rolex) and Cédric Bossert (Richemont)◆

Board Committee: Thierry Kenel◆

Managing Directors’ Committee Jean-Daniel Pasche

Participants at the Hong Kong International Watch Forum.

It is also a member of the Law Commission, the WTO Working
Group, the Working Group on questions of origin and customs
issues, the Expert Group on intellectual property, the Working
Group on short-term economic issues, the Expert Group on relations with the European Union and the Competition Commission.
It was heavily involved in discussions within economiesuisse
to ensure that the efforts of the watchmaking sector weretaken into account in the messages sent out by the umbrellaassociation for the Swiss economy, particularly those aimed
at the federal authorities.

Standing Committee of the European Watch
Industry
The Standing Committee of the European Watch Industry(CPHE) held a meeting in Bergamo on 27 October 2023,
chaired by Mario Peserico and with delegates from Germany,
France, Italy and Switzerland in attendance.

29

The discussions focused on future cooperation between the
CPHE and the CIBJO (World Jewellery Federation), bearing in
mind that the CPHE has observer status with the CIBJO andthat the various national watchmaking associations are alreadyindividual members on other bases.
The examination of the current European and global position
for watchmaking confirmed the uncertainties arising from theeconomic and geopolitical situation, as well as the reduced
visibility resulting from it. Globally, the normalisation of businessgrowth was confirmed.

Japan
The president of the FH met the representatives of Swiss brands
in Japan (subsidiaries, distributors and retailers) as well as individuals from the Japanese watchmaking industry, at a meetingin Tokyo, organised by the Swiss embassy, the Swiss BusinessHub and the FH centre.

This discussion was followed by an update on the various
European regulations, such as the temporary withdrawal of
the planned REACH restriction on bisphenol and that on PFAS
perfluorinated substances, such as epilames and lubricants.
The meeting also explored the consequences of the forthcoming
US Federal Act on button cell batteries (Reese’s Law). The FH
and the CPHE participated in the consultation procedure that
had taken place earlier in the year, with the FH also attendinga hearing in Washington with the committee responsible forthe case (see the Highlights chapter on page 11).
Finally, Jean-Daniel Pasche, President of the FH, officially
stepped down from the CPHE after 20 years of participating
as head of the Swiss delegation, and chairing the committee
for half of that time. He was warmly thanked by the European
delegates for so many years of discussions and fruitful collaboration. Although the sensitivity or complexity of the subjects
discussed had sometimes been difficult to navigate, Jean-Daniel Pasche was pleased to emphasise the quality and professionalism of the debates, which had always been driven by thedesire to be constructive and seek common solutions, all in a
spirit of cordiality that had been appreciated by everyone. He
also thanked and said farewell to Claude Vuillemez, who wasleaving the Swiss delegation after ten years of contributing to
the work of the CPHE.

Watchmaking associations
The usual meeting of watchmaking associations during theHong Kong Watch & Clock Fair has resumed after the pause
caused by the pandemic, in the form of the Hong Kong International Watch Forum. The FH was represented by its President.
Delegates from the various watchmaking associations shared
how the sector was changing in their country or territory.

The traditional meeting of watchmaking associations
was held by video conference in 2022

Kyoko Maebayashi and Ayako Nakano (FH Centre in Japan),Andreas Baum (Swiss Ambassador to Japan), Jean-Daniel
Pasche (President of the FH) and Fabian Stiefvater (Headof the Swiss Business Hub, Tokyo), at the reception at the
Swiss Embassy.

30

FH centres abroad
After almost three years of severe disruption, not to mention
complete blockages as a result of the pandemic, the Hong Kongand Japanese markets finally regained a degree of normality.
The same applied to the FH centres abroad.

FH Centre in Hong Kong
The speed at which borders reopened in early 2023 allowed
Chinese tourists to return to the special administrative region.
Against this background, the FH Centre resolutely pursued its
activities to support the sector as a whole and the association’s
members in particular. First, it provided regular information
updates to the central office and to members on the changes
in the market situation as the months passed. It also continued to offer practical support to several subsidiaries or local
representatives of brands in areas as varied as introducing
commercial or industrial partners, in Hong Kong, China andelsewhere in the region, identifying new staff or providing
personal support for visits to markets in south-east Asia.
The Hong Kong Centre also responded to numerous requests
from FH members, especially in the legal field and on preventing counterfeiting throughout the region. In particular, it pro-vided assistance to many brands to facilitate their registration
with the Chinese and Korean customs authorities. Similarly,
it conducted several dozen investigations of local companies
and filed numerous objections every month against the registration of marks in Class 14 (watch industry), both in Hong
Kong and elsewhere in the region.

FH Centre in Tokyo
On the Japanese market, the Tokyo centre provided support to FH members and their local agents, by supplying
commercial information, establishing business contacts andproviding linguistic assistance, among other things. It also
responded to requests from the media and maintained aclose relationship with local professional organisations anddiplomatic representations, as well as responding to specificrequests received on a daily basis from Japanese consumers
or companies.
In addition, it provided regular assistance to consumers in
the form of after-sales service, since certain brands no longer
provide maintenance for older models. This is one of the reasons it also manages an after-sales service pool for a number
of Swiss brands.

The many people who attended the FH seminar were highly satisfied with the event.

31

FH seminar
The seventh FH seminar took place in Tokyo in November,bringing together almost 80 representatives of Swiss watchmaking brands, retailers and specialist media.
The guiding thread of the presentations and discussions during the day was the 160 th anniversary of diplomatic relations
between Japan and Switzerland, which will be celebrated in
2024. How is Swiss watchmaking linked to this anniversary?
First and foremost, by the fact that this bilateral relationshipwas instigated and established in 1864 by the Neuchâtel
watchmaker, Aimé Humbert-Droz. And secondly because“Switzerland, land of innovation” will be the theme of the Swiss
pavilion at the next World Expo in Osaka, in 2025. In otherwords, two major events that should offer interesting opportunities not only for Swiss watchmaking to present itself as
a historic player in the relationship between the two countries, but also to highlight its extensive capacity for innovation.
Other presentations, entitled “Imagine Switzerland – Connecting Japan and Switzerland through Swiss Timepieces” and“Vitality.swiss” completed the programme.

The watch.swiss Japan exhibition at the Nihombashi
Mitsukoshi Department Store in Tokyo.

The participants thoroughly enjoyed the chance to meet again
under the aegis of the FH, and to be able to discuss market
trends and how business was progressing.

watch.swiss JapanThe FH Centre in Tokyo has been organising regular promotional activities in the Japanese market since 2016. Twowatch.swiss events took place during the year under review,
one at the Nihombashi Mitsukoshi Department Store in Tokyoin August, and the other in the Daimaru Sapporo Department
Store, on the island of Hokkaido, in October. Close cooperation
with local retailers helped set up both events, which were aimed
at the general public.
The Japan Railways tower, which is home to the Daimaru
department store, is a 38-storey building that stands at thesouthern entrance to Sapporo railway station. It houses a shopping centre, hotel and offices, as well as an observation terrace.
The shopping floor dedicated to watches, which was enlarged
in 2017, currently hosts 24 Swiss watch brand stores.

Daimaru Sapporo, which is currently home to 24 Swiss watch
brand stores, invited watch.swiss Japan to be part of its THE
WATCH 2023 exhibition to mark its 20 th anniversary. Several
additional panels about the Swiss watchmaking industry were
produced with the support of Suisse Tourisme: from the historyof Geneva to that of the Joux Valley, including the watchmaking museums and UNESCO World Heritage site in the canton of Neuchâtel. At the same time, the FH Centre in Tokyo
organised two other events: first, a lecture on the history of
the watchmaking industry and secondly, a workshop showing
how a watch movement is taken apart and reassembled. This
workshop was run in conjunction with Nisshin Tokei Holdings,
the second-largest importer of watches in Japan. One watchmaker also gave a demonstration of polishing using historical
tools imported from Switzerland.

The Swiss watch

33

industry in 2023
The statistics processed, distributed and analysed by the FH
are a key indicator for the sector. Prepared by the Federal
Customs Administration on the basis of declarations madeby firms, they constitute the main official, regular and reliable
source for monitoring the development of watch exports.
Through a wealth of detailed information concerning markets,
products and price segments, the FH can pinpoint recent or
historic trends in the Swiss watch industry.

34

Watch industry statistics
General situation

25

Swiss watchmaking continued to grow sharply in 2023, following strong performance the previous year. Watch exports
achieved record value, while the corresponding number ofwatches also increased significantly.

20

Operating mainly in the upmarket sector, Swiss watchmaking
benefited from steady demand in the luxury goods market. It
also achieved excellent performance in the entry-level segment,
illustrating the still significant interest in Swiss-made products.

5This remarkable momentum was supported by an increase in
the number of employees in the sector, which grew by 7.7%
to over 65,000 people in Switzerland, as announced by the
Employers’ Federation of the Swiss watchmaking industry.

Exports of wristwatches (in million of units)

15
10

0
2018

2019

Swiss watch exports
Swiss watch exports for the year as a whole exceeded their2022 result by 7.6%, increasing to a total value of 26.7 billion
francs. Growth in the first half of the year was 11.8% before
slowing, as expected, to 3.6% in the second six months.

30
25
20
15
10
5
0
2018

2019

Swiss watch exports (in billion francs)

2020

2021

2022

2023

2020

2021

2022

2023

35

Swiss exports of watches

25

The number of wristwatches exported grew by 7.2% compared with 2022, to 16.9 million items. This means that anadditional 1.1 million watches were shipped abroad in 2023,
confirming the recovery already observed a year before. As
a result, the export value of watches increased by 7.7%, to25.5 billion francs.

20

Mechanical watches (+7.0% by value) generated almost 80%of the growth in export turnover. At the same time, quartz
watches (+12.6%) accounted for three quarters of the increasein volumes, which rose by 8.8%.

0Mechanichal watches
Electronic watches

15
10
5
2018

2019

2020

2021

2022

2023

> 3,000

Total

Exports of wristwatches (in billion francs)

+20%
Units

Exports by price range
With an increase of 940,000 units (+11.2%), watches with anexport price of 200 francs represented 83% of the increase in
the total number of items. At the other end of the price scale,watches priced at over 3,000 francs (+9.4% by value) generated 92% of the growth. Between the two, the 200-3,000
francs segment varied only slightly compared with 2022, withan increase of +0.9% by value and +1.9% number of items.

Value

+10%

0%

-10%
CHF < 200

200-500

500-3,000

Exports by price segment (variation compared with 2022)

Exports by material
Steel watches, representing more than one item in two, stagnated in 2023, by both volume (+0.4%) and value (+1.4%).
Export turnover was mainly driven by watches made from precious metals (+9.2%) and bimetallic watches (+11.2%). The
increase in volumes is mainly due to the Other materials category (+28.1%), which saw exports rise by 1.1 million items
compared with 2022.

6%

4%

Precious metals

37%
17%

Steel
Bimetallic
Others metals

36%

Watch exports (shares in value)

Others materials

36

Europe7,921.3+6.8%

America
5,081.0+6.7%

Asia
13,136.0+8.2%

Africa165.6+3.4%
Oceania437.5+14.8%

World
26,741.5+7.6%

Total value of exports in 2023 in million francs, variation compared with 2022

Main markets
North and South America (+6.7%), driven mainly by the UnitedStates, absorbed 19% of Swiss watch exports in 2023. Europe(+6.8%) followed the same trend, representing a 30% share. Asia(+8.2%) accounted for almost half (49%) of Swiss watch exports.
Having grown by 27.1% on average in 2021 and 2022, watch
exports to the United States (+7.0%) remained very dynamic
last year.
In Asia, China (+7.6%) posted growth identical to the global average after the market disruptions in 2022, but has still not returned
to its pre-crisis level (-6.9% compared with 2021). Hong Kong(+23.4%) achieved a strong recovery following the lifting of healthrestrictions, which lasted three years and caused the market tofall to a historically low level. Japan (+7.7%) performed in line withthe average, while Singapore (+2.5%) remained below it becauseof an unfavourable base effect. In the Middle East (+6.0%), theUnited Arab Emirates (+12.2%) outperformed, while Saudi Arabia(+2.6%) saw more moderate growth. The only shadow on thehorizon, South Korea (-7.3%) suffered the full effect of competition from the duty-free market on the Chinese island of Hainan.
Performance in the main European markets was more uniform,
at +7.6% for the United Kingdom, +5.1% for Germany, +8.1%
for France, +9.3% for Italy and +5.7% for Spain.

37

USA

+7.0%

China

+7.6%

Hong Kong+23.4%

Japan

+7.7%

United Kingdom+7.6%

Singapore+2.5%

Germany+5.1%

France+8.1%

UAE+12.2%

Italy

+9.3%
0

500

1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500

Main export markets in 2023 in million francs, variation compared with 2022

Other exported products
Wristwatches accounted for over 95% of the value of Swiss
watch exports. The sector also exported other products, suchas watch movements, alarm clocks, other clocks and pocket
watches, as well as components, mainly for after-sales service.
These exports amounted to the equivalent of 1.2 billion francs,
an increase of 4.6% compared with 2022.
Exports of wristlets, watch cases and dials, which were up by
8.6%, are largely attributable to processing traffic.

Structure of

39

the FH in 2023
An organisation representative of the Swiss watch industry as
a whole, the FH has the following main tasks and objectives:
helping to defend and develop the sector, establishing a permanent link between its members in order to promote theirshared interests, representing the Swiss watch industry in its
dealings with Swiss and international economic authorities andorganisations, asserting the interests of its members duringconsultation procedures preparing the ground for nationaland foreign legislations, defending its members’ interests inthe legal arena, and fighting actively against infringements
of intellectual property rights and acts of unfair competition.

40

The FH in 2023
On 31st December 2023, the FH included 435 companies,
associations and institutions (approximately 90% of the Swiss
watch industry manufacturers), including 169 firms in the finished products sector. In terms of products, markets and busi-

ness size, the Swiss watch industry is characterised by its very
great diversity. The FH is therefore structured with a view toharmonising the different interests of its members through thebalanced composition of its statutory organs.

General Meeting
60 delegatesCouncil20 delegates

Bureau4 members

Presidency

Commissions

41

The General Meeting
Governing body of the association, the FH General Meeting
comprises a maximum of 60 delegates totalling 60 votes. Lasting three years, terms of office are renewable.

bers to the Board, as well as the president of the association,
and appoints the auditor; it discusses and approves the annual
report and the accounts, as well as the scale of subscriptions.

The General Meeting takes decisions on issues submitted to
it by the Board concerning the interests of the Swiss watch
industry and the association’s general policy; it elects mem-On 31st December 2023, the FH General Meeting was composed of the following delegates (some with more than
one vote):

Grégory Affolter
Affolter Group SA

Joris EngischJean Singer & Cie SA

Pierre-André Meylan
Piguet Frères SA

Karlheinz Baumann
Richemont International SA

Christian Feuvrier
Nivarox-FAR SA

Jérôme Monnat
Société des montres West End SA

Lorenz Bärlocher
IWC Schaffhausen,
Branch of Richemont International SA

Arianna Frésard
Victorinox Swiss Army SA

Elie Bernheim
Raymond Weil SA
Jérôme Biard
Roventa-Henex SA
Guillaume Boilot
TAG Heuer, Branch of
LVMH Swiss Manufactures SA
Antony Boiteux
Werthanor SA
Jean-Sébastien Bolzli
Aéro Watch SA
Patrick Brandelet
Joray & Wyss SA
Pascal Bratschi
Manufacture des Montres Rolex SA
Pierre-André BühlerETA SA Manufacture Horlogère Suisse
Jérôme Cavadini
Officine Panerai, Branch ofRichemont International SA
Pascal Dubois
Dubois Dépraz SA

David Guenin
Gimmel Rouages SA
Philippe Gurtler
Rolex SA
Emmanuel Henry
Manufacture des Montres Rolex SA
Thibaut Jullien
La Montre Hermès SA
Lars Kästle
Breitling SA
Thierry Kenel
The Swatch Group SA(FH Vice President)
Sébastien LangLouis Lang SA
Aurélien Le Bigot
LVMH Swiss Manufactures SA
Giuseppe Maesano
Universo SA

Stéphane Mougin
Gucci Swiss Timepieces SA
Corine Neuenschwander
Neuenschwander ComposantsHorlogers SA
Marianne Pandiscia
Multitime Quartz SA
Jean-Daniel Pasche(FH President)
Flavio Pellegrini
MGI Luxury Group Sàrl
Aubin Robert-Prince
Robert Laminage SA
Alain Sierro
Fraporlux Swiss SA
David Storrer
Coloral SA
Manuela Surdez
Goldec SA

Alain Marietta
Métalem SA

François Thiébaud
Tissot SA

Axel Meyer
Richemont International SA

Vladimiro Zennaro
Bergeon SA

42

The Board
Comprising twenty members elected for three years by theGeneral Meeting, the FH Board, which meets four times a year,
has the following main attributions: it defines the association’s
policy and monitors its application; it rules on the admission ofmembers; it gives its opinion on issues to be submitted to theGeneral Meeting and executes the latter’s decisions; it elects the
Bureau and appoints the vice-president(s); it appoints headsof division and commission members; generally it assuresa permanent link between members of the association, theauthorities and third parties; it approves agreements concluded
between the association and its members or third parties; etc.

Raynald Aeschlimann
Omega SA

Emmanuel Henry
Manufacture des Montres Rolex SA

Karlheinz Baumann
Richemont International SA

Lars Kästle
Breitling SA

Lorenz Bärlocher
IWC Schaffhausen, Branch of Richemont International SA
Jérôme Biard
Roventa-Henex SA
Guillaume Boilot
TAG Heuer, Branch of LVMH Swiss Manufactures SA
Matthias Breschan
Compagnie des Montres Longines, Francillon SA
Pierre-André BühlerETA SA Manufacture Horlogère Suisse
Christian Feuvrier
Nivarox-FAR SA

On 31st December 2023 the Board was composed of the following members:Thierry Kenel
The Swatch Group SA
Sébastien LangLouis Lang SA
Alain Marietta
Métalem SA
Axel Meyer
Richemont International SA
Jean-Daniel Pasche
FH

Arianna Frésard
Victorinox Swiss Army SA

Aubin Robert-Prince
Robert Laminage SA

Philippe Gurtler
Rolex SA

Alain Sierro
Fraporlux Swiss SA

43

The Bureau and the Commissions
Comprising the president, the two vice-presidents and one or
two members, the Bureau examines issues delegated to it by
the Board and, exceptionally, questions of an urgent nature.

The FH also has six permanent Commissions responsible
for examining issues of general interest dealt with by the
association.

At the end of 2023, its composition was as follows:

The Commissions and their presidents:

Jean-Daniel Pasche
FH

Economic Commission
Thierry Kenel

Carole Décosterd
Rolex SA

Financial Commission
Pascal Bratschi

Thierry Kenel
The Swatch Group SA

Legislative monitoring Commission
Olivier Blanc

Alain Marietta
Métalem SA

Legal Affairs Commission
Jean-Daniel Pasche

The president of the Financial Commission is regularly invited
to attend the Bureau’s meetings.

Standardisation Committee
Pascal Cartier
Anticounterfeiting Group
Jean-Daniel Pasche

44

The Divisions and the Departments
At 31 December 2023, the FH employed 34 full-time
equivalent staff in Bienne (33.4 in 2022). Its organisation chart
is as follows:

Presidency
Jean-Daniel Pasche

Communication
Philippe Pegoraro

Information Department
Janine Vuilleumier

Economic Division
Maurice Altermatt

Legal Division
Yves Bugmann

Adminstrative Division
Alain Guillaume

External Affairs
Department
Maurice Altermatt

Legal Department
Yves Bugmann

Administration
Department
Alain Guillaume

Economic and Statistical
Department
Philippe Pegoraro

Anticounterfeiting
Department
David Luther

Information Technology
Department
Fabrice Erard

Promotional Affairs
Department
Hélène Leonardi

NIHS Department
Patrick Lötscher

FH Hong Kong Centre
Thierry Dubois

Internet Unit
Yves Brouze

FH Japan Centre
Ayako Nakano

45

The network of partners
The FH would be nothing in the globalised world without asolid network of partners, which can be found both within andoutside the sector on all five continents. Non-exhaustive, thelist below provides a summary of this network.

Watchmaking partners◆

All India Federation of Horological Industries◆

Infosuisse Information horlogère et industrielle◆

American Watch Association (AWA)◆Japan Clock and Watch Association◆

Japan Watch Importers’ Association

◆

◆

◆

◆

Association des fabricants de décolletages et detaillages (AFDT)
Association des fabricants et détaillants en horlogerie,marché suisse (AMS)◆◆

Association patronale de l’horlogerie et de la
microtechnique (APHM)◆

Association patronale des industries de l’Arc-horloger
apiah

◆
◆

◆

Association pour l’assurance qualité des fabricants debracelets cuir (AQC)◆◆

Association suisse pour la recherche horlogère (ASRH)◆

Associazione Ticinese Industria Orologiera-ATIO◆

Assorologi (Italy)◆

BV Schmuck + Uhren (Germany)◆

Centre suisse d’électronique et de microtechnique(CSEM)◆

Joyex - Asociación Espagñola de Fabricantes y/oExportadores de Joyería, Platería y Relojería
Korea Watch and Clock Industry Cooperative
SCBT - Swiss Center for Business and Technology
Intelligence
Société suisse de chronométrie (SSC)
The Federation of Hong Kong Watch Trades &Industries Ltd
Union des Fabricants d’Horlogerie de Genève, Vaud etValais (UFGVV)
Verband deutschschweizerischer Unternehmen derUhren- und Mikrotechnik (VdU)

Federal administration◆

Bureau central du contrôle des métaux précieux◆

China Horologe Association◆

Comité permanent de l’horlogerie européenne (CPHE)◆

Contrôle officiel suisse des chronomètres (COSC)◆◆

Convention patronale de l’industrie horlogère suisse (CP)◆◆Fédération de l’horlogerie (France)◆

Fédération romande des consommateurs (FRC)◆

Présence suisse◆

Fondation de la Haute Horlogerie◆

State Secretariat for Economic Affairs SECO◆

Fondation Qualité Fleurier◆

Swiss Federal Institute of Intellectual Property (IPI)◆

Fondation WOSTEP◆◆France Horlogerie Industries du Temps et desmicrotechniques
Hong Kong Watch Manufacturers Association◆

Office fédéral de la douane et de la sécurité desfrontières (OFDF)
Office fédéral de la santé publique (OFSP)
Office fédéral de la sécurité alimentaire et des affaires
vétérinaires (OSAV)

46

Chambers of commerce
◆
◆

◆
◆

Alliance of Swiss Chambers of CommerceArab-Swiss Chamber of Commerce and Industry(CASCI)

Customs and police organisations◆

Agenzia delle Dogane, Roma◆City of London Police◆

Commandement général de la Guardia Civil (Espagne)

International Chamber of Commerce international (ICC)◆

Joint Chambers of Commerce (Russia, Ukraine,
Kazakhstan, Belarus, Kyrgyzstan, Moldova)◆

Commandement général de la Guardia di Finanza(Italie)
Direction générale des douanes et Droits indirects dela République française

◆Swiss-Asian Chamber of Commerce◆

Swiss Business Council Abu Dhabi◆

Europol◆

Swiss Business Council Dubai◆

Federal Bureau of Investigation (FBI)◆Swiss Chamber of Commerce in Japan◆

Interpol◆Swiss-Chinese Chamber of Commerce◆

Police cantonale de Neuchâtel◆

Swiss-Indian Chamber of Commerce◆

Police cantonale du Jura◆

U.S. Customs and Border Protection◆

World Customs Organization

Economic organisations◆

BUSINESSEUROPE◆

economiesuisse◆

Switzerland Global EnterpriseTechnical organisations

Organisations involved in standardisation◆

Association française de normalisation (AFNOR)◆

British Standards Institution (BSI)◆

Bureau of Indian Standards (BIS)◆

Comité européen de normalisation (CEN)◆

Deutsches Institut für Normung (DIN)◆CIBJO – The World Jewellery Confederation◆

Comité FRANCECLAT◆

Ecole d’ingénieurs ARC◆

International Electrical Committee (IEC)◆International Organization for Standardization (ISO)◆Tokyo Watch Technicum◆

Japanese Industrial Standards Committee (JISC)◆

Korean Agency for Technology and Standards (KATS)◆

Standardization Administration of China (SAC)◆

Swiss Association for Standardization (SNV)◆

Federal Agency on Technical Regulating and Metrology(GOST R)

47

Anticounterfeiting organisations
◆
◆

◆
◆

◆

Anti-Counterfeiting Group (ACG)
Brandowners Protection Group (Gulf Cooperation
Council)Ecole des Sciences Criminelles, UNIL
INDICAM - Associazione italiana per la Lotta alla
Contraffazione
STOP PIRACY – Plate-forme suisse de lutte contre lacontrefaçon et la piraterie◆

Swissness Enforcement◆

The Anti-Counterfeiting Network (REACT)◆

Union des fabricants

Legal organisations◆

Association internationale pour la protection de la
propriété intellectuelle (AIPPI)◆Association suisse du droit de la concurrence◆

Association suisse du droit européen◆

Commission européenne, DG Environnement◆

International Trademark Association (INTA)◆

Ligue internationale du droit de la concurrence◆

Organisation for an International Geographical
Indications Network (Origin)

Rue d’Argent 62502 Biel/Bienne
Switzerland

info@fhs.swiss
www.fhs.swiss
Tél. +41 32 328 08 28