Luxury watchmakers are bracing themselves for the uncertainties surrounding Brexit and the ongoing protests in France. With the looming deadline of Brexit, luxury watch brands are gearing up for potential challenges that may arise from new customs procedures or import backlogs once Britain exits the EU. To preempt any disruptions, many luxury watchmakers are taking proactive measures by stockpiling inventory in Britain.
One prominent example is Oris, a renowned watch brand that typically operates on a per-order basis when shipping to retailers in the UK. However, in light of Brexit uncertainties, Oris has decided to increase its stock in Britain as a precautionary step. Rolf Studer, the CEO of Oris, emphasized the need for preparations in the face of such uncertainty. The Swiss Watchmakers Federation also noted a surge in imports to Britain, indicating that other luxury watch brands are following suit in preparing for potential disruptions.
Despite the cloud of uncertainty surrounding Brexit, a bilateral agreement between Switzerland and the UK has been inked to ensure seamless trade relations post-Brexit. This agreement specifically addresses concerns about air imports, which are expected to continue without any new restrictions. However, road transportation of goods may encounter delays as they traverse the EU en route to Britain.
In addition to Brexit-related concerns, luxury watchmakers are also keeping a watchful eye on the ongoing “yellow vest” protests in France. These protests have dampened foot traffic in luxury watch stores in prestigious shopping areas like Place Vendome. Hublot, a prominent watchmaking brand, has experienced a downturn in sales in Paris due to the protests. The unrest has also affected other luxury retailers, such as Bulgari, whose employees in Champs-Elysees have grappled with heightened security risks.
The protests in France have sparked worries about a potential decline in tourism numbers, which could have a ripple effect on luxury watch sales, given their reliance on tourist spend. Consequently, many luxury watch brands are closely monitoring the situation in France and bracing for a possible dip in watch imports to the country. Despite the challenges posed by Brexit and the unrest in France, luxury watchmakers remain resolute in their commitment to adapting to these evolving circumstances and ensuring the uninterrupted operation of their businesses.
For more information on how luxury watchmakers are navigating the uncertainties of Brexit and the French protests, check out the following links:
1. Brexit – Luxury Watchmakers’ Preparedness
2. Evaluating the Impact of French Protests on Luxury Watch Brands
