Switzerland has long been associated with high-quality watchmaking. Watches are the country's third biggest export after the chemical and engineering industries in terms of value.

About 95% of Switzerland's watch production is exported, and in terms of value it is the world's biggest watch exporter: the total value of Swiss watch exports in 2006 was 13.7 billion francs. This reflects the fact that expensive luxury watches represent a large proportion of Swiss production in comparison with other major exporting countries. Not surprisingly, in terms of the number of watches exported, Switzerland (24.9 million in 2006) lags far behind China, with 691.6 million, or even Hong Kong, with 521.1 million.

The average export price of a Chinese watch in 2006 was one dollar, while in Hong Kong it was eight dollars. Switzerland stands at the other extreme, with an average of 410 dollars, the highest in the world.

The market for Swiss watches is concentrated in three continents. The two biggest customers are the US and Hong Kong. (Hong Kong is a major hub: many of its imports are re-exported.)

Italy, Germany and France are the leading customers in Europe.

Switzerland owes it success not only to the high-quality of its output, but also to the wide range of the watches it produces, in terms of both technology and appearance. Nearly 90% of the watches made in Switzerland are electronic, but mechanical watches, the remaining 10%, account for over half the exports in terms of value. Some of the watches at the upper price range are among the most complex in the world.

As for appearance, this ranges from sober classic, through diamond-studded, to cheap and cheerful.