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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)

Watchmakers not marking time despite current lull

A woman photographs Swiss watches at a luxury expo in Beijing in June. Industry insiders say the sale of Swiss watches in China will rebound even though there has been a slump in orders since last year. Provided to China Daily

Industry insiders say it is just a matter of time before sales rebound, which they say will happen soon - and that the Chinese will remain the most important customers for the Swiss watchmakers.

Pablo Mauron, general manager of Digital Luxury Group's China office, a research and marketing firm that focuses on luxury brands and digital marketing services, says that despite the lull, "we can't realistically forecast a significant market decrease in the long run as the fast-growing middle-class, quick wealth creation from tier two and three cities as well as increasingly important travel spending are strong drivers that are here to stay".

Some experts say there is nothing abnormal about lower sales of luxury watches in recent months and believe the prospects for Swiss watchmakers in China are bright, given that the rapid increase in incomes has generated huge purchasing power.

William Bai, editor-in-chief of Horlogerie Culture Center of China, says in DLG's 2013 World Luxury Index China, an analysis of Chinese interest for more than 400 luxury brands: "The unleashing of purchasing power promises future growth for the Chinese luxury watch market. Personally I think it will maintain its rapid growth rate, although it might drop to a stable rate compared with previous years, just as China's GDP needs to slow down. This is a result of the growing maturity of buyers, selection range expansion and dispersed purchase channels."

Facing the slump in orders from China, the confidence of Swiss watchmakers seems to be undiminished. They hope the decline in sales figures is just a blip and are showing no intention of stepping on the brake in China.

"China and its people have shown themselves to be resourceful and resilient," says Stephen Urquhart, president of Omega SA, whose watches have kept time at the Olympic Games since 1932 and been worn on the moon.

"We strongly believe that the economy is being managed with a long-term view in mind," Urquhart says. "The fact that Omega continues to add new boutiques in China makes it clear that we still see enormous potential there."

Omega opened its first store on the Chinese mainland in the early 1990s. It has since opened more than 100 monobrand boutiques and plans to continue to locate them at all the best retail addresses in the country.

"Omega is constantly working on opening these 'houses of Omega' around the world. There are plans to celebrate the opening of a new Omega Boutique in Beijing later this year," Urquhart says.

 
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