World watches suffered a decline in sales in China

Basel, Switzerland - Many watch companies have opened hundreds of stores in China in recent years, and some of them are now experiencing poor sales of goods and starting to cut back on their retail stores. In these enterprises to reduce the scale of operation at the same time, China from the world's leading watchmaking manufacturing center in Switzerland the number of imported watches and clocks products are also declining, lower than the level of two years ago. In 2012, China has set a record in this regard. In 2012, Beijing Montblanc stores display replica watches uk. David Gray / Reuters In 2012, Beijing Montblanc stores display watches. related articles Pegged to the Chinese market? Swiss watch brand does not mind For China's special antique pocket watch unusually hot Fragile and expansive jade watch Luxury and corruption have anything to do? China's rich began to favor low-key luxury brands "China's gold rush is over," said François-Henry Bennahmias, chief executive of Swiss watchmaker Audemars Piguet. Audemars Piguet has closed six of its 22 retail stores in China. "We will slow down our growth in China, and we will be more careful with each step." According to data released last week by the Swiss Federation of the Watch Industry, Swiss watches exported to mainland China fell 26% from a year ago, to 323 million Swiss francs in the first quarter of this year. RMB 2.1 billion). Exports to Hong Kong fell 9% to 910 million Swiss francs. But overall, the Swiss watch exports in the first quarter rose 2.3% to 4.73 billion Swiss francs, mainly by the Middle East and some European markets, especially in Germany and the United Kingdom. "People are over-enthusiastic about the Chinese market and think there's nothing going on with 40 or 50 stores," said John Simonian, owner and watchmaker of Los Angeles replica watches retailer Westime. Today, China 's stores are full of inventory, is not able to sell there is no guarantee. HNWIs who love to travel are increasingly shopping abroad. McKinsey (McKinsey) in December research report released by the Chinese company to buy luxury goods, about half of the behavior occurred in the mainland outside the region. Therefore, "Paris is now 50 square meters of shops than in China, 50 square meters of shops more meaningful," Audemars Piguet Benner said. According to a December research report by Bain, another market researcher, Chinese consumers are spending 25% more on luxury goods while US consumers are buying 20% / RTI & gt; But at the same time, Bain raised some warnings in the light of last year's slight decline in Chinese luxury goods sales. "Luxury retailers in China need to offer their customers the same experience they can enjoy in France and Italy, or more people may have to wait until they travel," Bain's report says. Some industry executives said, rather than focusing on China's purchasing power, luxury goods companies should pay more attention to the Chinese people in the tourism and consumption habits change. "I think some people in the Chinese market too much investment, but did not take into account how much the Chinese people like to shop in other places, this can avoid paying high tariffs," another Swiss watchmaker Parmigiani (Parmigiani Fleurier ), Said Michel Parmigiani, founder of the company. In the Chinese mainland, different types of luxury tax rate between 20% to 70%. Another important factor is the Chinese government's anti-corruption campaign, one of the actions is to combat the gift of expensive gift behavior. "Most people think that gifts will be popular for some time, but now the government really started to combat it, so wrist and then wearing a large watch is unaccepwatch, it also affected the retail, especially those in China "Says Cox, of Kepler Capital Markets, who estimates that in mainland China, gift-giving accounts for half of watch sales. "The question now is, is rolex replica this situation will not start to spread to the Chinese people have to buy watches in all markets," Cox added. Nick Hayek, chief executive of Swatch Group, the world's biggest watch company, said some form of cooling in the Chinese market was unavoidable. "You can not achieve 30% annual growth in a market," he said. But he also pointed out that the situation facing the most high-end brand is different from "in the low-end market is still the real growth opportunities." Peter Stas, a Dutch-based shareholder at Geneva-based watch company Frédérique Constant, agrees. "In China, the typical watches for gift-giving are now really in trouble , But the middle class is still buying. " Despite the recent unease in China's retail market, the world's largest watch and luxury goods group continues to grow strongly. In January, Richemont warned that Asia's development prospects are uncertain. But it last week announced a 30% profit increase in 2012, and favorable interest rate fluctuations helped propel that growth. Moët Hennessy Louis Vuitton (LVMH Moët Hennessy Louis Vuitton, referred to as LVMH Moet Hennessy Group) announced the first quarter of total sales increased by 6%, but the watch and jewelry segment sales fell 1%. "In China, the business is very bad, to be honest, China's watch industry is shrinking," LVMH Group watches and jewelry department head Francesco Trapani (Francesco Trapani) said. "The government is persuading people from the moral point of view, limit spending, limit the display of luxury goods." But Trapani added, "the same is true, we sold in China outside the number of products is now a significant increase. René Weber, watch industry analyst at Bank Vontobel in Zurich, said recent declines in watch exports indicate a need for a significant reduction in Chinese inventories. But he also predicted that in the second half of 2013, once China's inventory reduction, the Swiss watch industry's exports will rebound. But the challenge for the watch retail industry is not just to manage excess inventory. "In many Chinese cities, rents have risen to an alarming level, which means that many retail stores have been unprofiwatch," the sale of Swiss watches in China, the Swiss Swiss company founded Prestige, Hong Kong's British wealthy (Emil Says Klingelfuss. Just as the European economy was in a recession, the owners of watch shops opened their welcome arms to a large number of Chinese tourists. "The Chinese will buy a variety of watchs, and most people know what they need before they enter the store," says Marcelo Angeletti, the boss of Angeletti, Marcello Angeletti) said. "In recent years, many brands are very fascinated by China, so some companies may now need to slightly reduce the investment in the Chinese market," another Swiss watch company Roger Dubuis (Roger Dubuis) CEO Jean - Marc Peng Jean-Marc Pontroué said. Some watch companies did not reduce their expansion in the Chinese market trend, including Hong Kong, the Chinese market in the first quarter still accounted for 26% of Swiss watches exports. "We have a lot of sales outlets in China, may be a little too much, but you must store the existence and its performance separately, because the store is a communication tool, can not be replaced," Piaget (Piaget) President Philippe Léopold-Metzger said. Piaget is a subsidiary of Richemont.