pull Closed stores, impaired public transport, glass beveled edge set of the tourists: The months-long protests in Hong Kong, the economy of the metropolis affected. The world is affected largest watch manufacturer, is the Swatch Group with headquarters in Biel,. A spokesman for the company, Nick Hayek confirmed to close in Hong Kong some shops for security reasons, earlier, its operation is partially set, or even closed all day.
The falls therefore to the weight, because Hong Kong is, by far, the largest watch market in the world. The Swatch Group with brands such as Swatch, Omega and Breguet, is represented in the Chinese special administrative region with about 100 boutiques.
sales drops significantly
Concrete information on the consequences for the business in the important second half of the year with the Christmas business, the stock was not listed on the watch group. The spokesman says only: “of Course, the group is involved and that is significant.”
The extent will only be apparent when the Swatch Group released in February, the annual report for the current year. It is known, however, that the group suffered in the first half of the year in Hong Kong, a decline in sales in the two digit percentage range. The share price has been on a downward spiral. However, since the outbreak of the protests in Hong Kong in June, it increased slightly.
“The global Events outside of our control.”Johann Rupert, Chairman of the Board Richemont
The events in Hong Kong are a Déjà-vu for the Swatch Group: While the yellow West-protests in France, the company had to barricade in the past year, the shops in the tourist centre of Paris – the second most important watch market in the world – almost. The Swatch Group is represented on the Champs-Elysées, with private boutiques of the brands as Swatch, Omega and Tissot. The security in Paris and other French big cities, led to revenue declines and avoided the Christmas business, most of the watches in the group.
The competitors in Hong Kong, not better. The Geneva luxury goods group Richemont reported for the fiscal period April to September decline in sales in the two digit percentage range. “The global Events outside of our control,” commented Chairman of the Board Johann Rupert is the result. To belong to Richemont watches LeCoultre brands such as IWC, Piaget and Jaeger. The share price of the luxury goods group has collapsed since the summer.
Dramatic slump in the exports
the consequences of The unrest in Hong Kong with the Swiss watch industry a total of noticeable. The third-largest export industry of the country with its almost 58’000 employees recorded in October, a dramatic decline in exports to Hong Kong. In terms of value, the sector exported in the last month, almost a third less than in October 2018.
From January to October, exports declined by nearly 9 percent to 2.2 billion Swiss francs. “Hong Kong remains the first market of our industry,” says Jean-Daniel Pasche, President of the Federation of the watch industry. “As long as the riots continue there, but will suffer and our exports.”
the Chinese travel to Hong Kong to Japan, South Korea or Singapore, where the luxury watch cover.
This is for the industry, therefore, is a Problem, because it is in the former British colony with luxury watches traditionally higher margins than in other locations. Hong Kong is a popular shopping destination for affluent tourists from the Chinese mainland. On the other hand, the metropolis is also a hub for the neighboring countries. From there, the Swiss watch industry supplied the surrounding markets in South East Asia. The escalation of the protests hitting the local watch manufacturers, therefore, sensitive.
Nevertheless, there is in the watch industry there is currently no indication for a set. The reason is that In the other major export markets, the business is going well, as the latest Figures for October show.
But also tourists from the Chinese mainland with their behavior for Confidence: you are instead of traveling to Hong Kong to Japan, South Korea or Singapore, where the luxury watch cover. Or you can buy more in China itself.
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“The decline in Hong Kong is such a large part in the other countries,” says industry expert Rene Weber of Vontobel Bank. The analysts of the Swiss Bank expect a “catch-up effect” for Hong Kong, should continue the demonstrations.
economy in Hong Kong
Hong Kong is shrinking, fell in the third quarter in a recession, as the official data now show. The economy shrank from July to September compared to the previous quarter by 3.2 percent. This is a clear weakening compared to the second quarter with a decline of 0.5 percent.
There was no immediate solution to the political crisis the city is in sight, could extend the first economic downturn of Hong Kong since ten years through to next year.
Created: 22.11.2019, 19:06 PM
