The Business of Fashion
Agenda-setting intelligence, analysis and advice for the global fashion community.
Agenda-setting intelligence, analysis and advice for the global fashion community.
GENEVA, Switzerland — Swiss watchmakers expect to at least stabilise sales this year after two years of decline as the important Chinese and US markets show signs of turning the corner, executives said at an industry event on Tuesday.
Luxury watchmakers have been grappling with a combination of weak demand in their biggest markets, Hong Kong and the United States, and Chinese tourist shoppers avoiding Europe for fear of militant attacks.
Recent comments from executives suggest the worst may be behind them, however.
"We hope to see a year of stabilisation and consolidation," Nicolas Bos, chief executive of watch and jewellery maker Van Cleef & Arpels, owned by Richemont, told Reuters in an interview at an industry watch fair.
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"Towards the end of last year things started to look a bit better," he added.
Richemont, which also makes Cartier jewellery and Vacheron Constantin watches, last week reported a return to sales growth in the final quarter of 2016. Richemont and Swatch Group shares have gained 14 percent and 11 percent respectively so far this year.
"In our business, uncertainty is the worst enemy. You don't buy exceptional pieces when you're not in the mood. In the United States, for example, the complicated period before the election had an immediate impact," Bos said, adding U.S. sales had picked up in December.
Exports of Swiss watches fell 10.4 percent in the first eleven months of 2016, but exports to mainland China returned to growth in July. December data is due on Jan. 26.
"The worst seems to be behind the Swiss watch industry," said Jean-Claude Biver, head of LVMH's watch business.
"Mainland China is likely to see a good progression in 2017, but Hong Kong won't rebound so quickly," he said, adding there was still excess stock at Hong Kong retailers. Fewer wealthy Chinese shoppers have been visiting Hong Kong since 2014.
By Silke Koltrowitz; editor: Alexandra Hudson.
From analysis of the global fashion and beauty industries to career and personal advice, BoF’s founder and CEO, Imran Amed, will be answering your questions on Sunday, February 18, 2024 during London Fashion Week.
The State of Fashion 2024 breaks down the 10 themes that will define the industry in the year ahead.
Imran Amed reviews the most important fashion stories of the year and shares his predictions on what this means for the industry in 2024.
After three days of inspiring talks, guests closed out BoF’s gathering for big thinkers with a black tie gala followed by an intimate performance from Rita Ora — guest starring Billy Porter.