The state of the Swiss watch market

  1. Calibre11

    Calibre11 Editor of Calibre11.com Staff Member Aug 29, 2016

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    There's been a lot of talk about the most recent sales results for the Swiss watch makers- in short, another reduction in sales- you can see the breakdown by market below
    swiss-watch-exports.jpg
    Source: http://www.watchpro.com/british-luxury-watch-market-on-fire-as-imports-from-switzerland-surge-13-4/
    Some big falls in markets driven by tourism (Hong Kong and France- for very different reasons), with UK sales surging off the back of the reduction in the pound post Brexit.

    So what does all this mean? Well, a few thoughts:
    - TAG Heuer are very well placed in the changing market, given their focus on reducing their costs 2 years ago and largely exiting the $8-12K market
    - We're already seeing a brace of new steel models from brands such as Piaget, who are looking to get some models in below the USD10k mark- it's a tough market to be only selling precious metal
    - Swatch Group has started discussions with Swiss regulators to allow them to sell more movements to third parties...yes, sell MORE movements . The reduction in demand for movements has hit their movement business, so now they are changing their tune on third-party sales ;)
    - We've seen a couple of watch companies being sold this year, including Frederique Constant and Glycine
    - As I've mentioned in a previous post, I reckon the danger place for brands are those focused on the $8000-15000 price range.

    Is this the beginning of a new crisis? Too early to say yet, but pleasingly from a TAG Heuer perspective, the brand seems to be well placed and with growing sales.
     
    Hubert likes this.
  2. Hubert

    Hubert Sep 1, 2016

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    Speaking about the Swatch Group, The Watches TV just had an interesting profile about them.
     
  3. Hubert

    Hubert Sep 2, 2016

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    At the recent Ibiza event JVB commented about the state of the Swiss Watch industry and provided very interesting figures for TAG Heuer.
    Advance to minute 5:40