Daily Management Review

Swiss luxury watch sales are experiencing a crisis


01/26/2017


Swiss watch exports fell by 9.9% in 2016, which was the worst figure since 2009, when the world global financial crisis erupted. In Hong Kong - the main sales market for the Swiss manufacturers - sales fell by 11.4%. Among the main factors that influenced the negative statistics, analysts noted China's anti-corruption policy, decline in tourist flow in Europe and strengthening of the Swiss franc.



Jpr
Jpr
Annual sales figures of the Swiss manufacturers have been affected by "strengthening of the Swiss franc, weaker flow of tourists in Europe and measures taken by the Chinese government" to fight corruption. Sales luxury watches have had the strongest impact on total score from export. Retailers sold 11.6% less products worth more than 3 thousand francs than in 2015. Almost three-quarters of falling sales accounted for the most expensive watches made of precious metals (18.5% fall).

As for markets, the largest of them - Hong Kong - showed a serious drop in sales both in the end of last December (-15.7%), and the past year as a whole (-25.1%). Over the last four years, this market has declined by half. China - the third largest market for Swiss manufacturers - began to recover in the second half of the year, despite ongoing campaign of the authorities to eradicate corruption, which implies a prohibition on giving expensive gifts to public servants. As a result, the Chinese market declined by 3.3% year-end.

Among European countries, France showed the heftiest crash (-19.6%) of the watches market. The country is suffering from a serious decline in number of tourist arrivals, which is associated with terrorist acts. The United Kingdom, on the other hand, demonstrates growth in the number of sales of Swiss watches, which is explained by depreciation of the pound sterling.

source: fhs.swiss






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