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






Science & Technology

Wreck Of Russian Ship Rumoured To Have 5,500 Boxes Of Gold Found Near South Korean Island

Gene Editing of Human Embryo Could Find ‘Moral’ Grounds: UK’s Ethics Council

Baidu comes up with a self-driving bus

Developing countries are stepping up their own space programs

McAfee: Number of cybercrime attacks skyrocketed

RemoveDebris Mission To Clear Debris Of In Orbit Over Earth

British experts: Online gambling is dangerous

Vodafone Chooses ‘Highly Trafficked Urban’ Space As Its 5G Testing Grounds

Space To Become A Travel Destination By 2022

Dream Of Immortality Can Be Realised By 2045

World Politics

World & Politics

Germany asks to return € 4 thousand subsidies for the purchase of Tesla

Was Trump's visit to the UK the last straw?

Prime Minister May Could Alter Brexit Strategies, Said Ress-Mogg

Le Maire: The US refused to release France from anti-Iran sanctions

One Belt, One Road is facing difficulties around the world

Qatar to raise $ 4 billion to buy Eurofighter Typhoon jets

The UK sets to turn all cars zero-emission by 2030

Brexit Minister’s Resignation States May’s Brexit Policies Weakening The Country’s Stance