Swiss watchmakers are feeling optimistic about their sales outlook for the year, despite concerns over a slowdown in growth in China. Executives in the industry are confident about their ability to boost sales, pointing to strong demand in key markets like the United States and Britain as key factors in their positive projections.
Although the Swiss watch industry relies heavily on Chinese customers, there was a modest 2.1 percent increase in exports in the first two months of the year, following a 6.3 percent increase in the previous year. Nevertheless, industry leaders remain upbeat about their growth forecasts for the year ahead.
Major players such as LVMH’s Bulgari and Oris are anticipating double-digit growth in their watch business this year, while Hublot expects a solid 7-8 percent increase from a successful previous year. Sales trends in the United States and the UK are also promising, especially for luxury brands like Rolex, Patek Philippe, and Audemars Piguet.
Patek Philippe, renowned for its high-end timepieces, has maintained steady sales expectations for the year and has no plans for a sale. Industry experts note that privately owned brands such as Patek and Rolex have fared better in terms of demand compared to publicly traded brands, thanks to their focus on brand value over sheer volume growth.
The Swiss watch industry is undergoing a transformation, with brands increasingly emphasizing direct distribution through their own boutiques, be it offline or online. Some brands have opted out of traditional watch fairs in Basel and Geneva in favor of independent events to showcase their latest offerings.
While the move to align the watch fairs starting from April next year has been seen in a positive light, some executives feel that more changes may be needed. The industry is in a state of flux, with companies looking into new approaches to cater to changing consumer preferences and market dynamics.
In conclusion, the Swiss watch industry shows resilience and adaptability in the face of challenges, prioritizing innovation, brand value, and strategic distribution channels to drive growth and maintain a competitive edge in the global market.
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