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China Daily Website

Watchmakers not marking time despite current lull

Updated: 2013-11-11 08:08
By Liu Lu ( China Daily)

Despite economic slowdown, the luxury timepieces continue to serve Swiss makers

Watchmakers not marking time despite current lull

A Swiss watch attracts a man at a luxury expo in Beijing. China and Switzerland signed an agreement to cut tariffs on watches imported to China by 60 percent. Provided to China Daily

Watchmakers not marking time despite current lull

Pandas are to China what watches are to the Swiss -an integral part of the county. Since the first Swiss watch began ticking in Geneva more than 400 years ago, they have become famous around the world for their exquisite craftsmanship, quality and reliability.

Yet who among the artisans of Geneva in the mid-1500s could have imagined how timeless their wares would be, or that one day it would be Asia, and particularly China, that would play a great role in keeping the wheels of their businesses turning?

But perhaps Swiss watches and Chinese buyers were always destined to meet, the best of the timepieces dripping elegance and sophistication, the richest of the buyers wanting not only to look good but to show off their immense wealth as well.

"China's affluent population is growing rapidly and so is the demand for status symbols," says Zhu Shunhua, secretary-general of the Shenzhen Watch and Clock Association.

"Thanks to aggressive brand marketing, Swiss watches have become one of the most popular luxury purchases for China's wealthy."

China's appetite for high-end Swiss watches has enabled the country to become one of the fastest-growing markets for the Alpine nation's timepieces, he says.

The Federation of the Swiss Watch Industry says that in 2002 Swiss watch imports to the Chinese mainland were worth SFr94.2 million ($96.3 million), and that by last year that figure had risen almost 18-fold, to SFr1.65 billion, making the mainland the third-largest buyer of Swiss watches after Hong Kong and the United States.

However, after years of double-digit growth, Swiss watchmakers have noticed a clear slowing of customer demand in China since the end of last year, which industry experts attribute to the country's economic slowdown and the government crackdown on illegitimate gift giving and conspicuous consumption by officials.

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