Designer Watches in the News
Swiss watchmakers see sales jump |
| Swiss watchmakers are enjoying their best sales growth in five years because of increased demand for luxury watches and the success of new designer brands. The industry enjoyed a 30% year-on-year increase in the value of its exports last month, coming on the back of what was a record performance in 2004. Sustained economic recovery across Asia and the strong US economy lifted sales. The popularity of designer fashion watches from the likes of Hermes and Chanel have also boosted the market. Rising incomesSwiss watchmakers such as Swatch, Cartier and Patek-Phillippe are enjoying buoyant times with sales, in terms of value, 14% higher this year than at the same stage in 2004. In May alone, exports totalled 1 billion Swiss francs (£430m, 648m euros), 29% higher than the same month last year. The industry has enjoyed a resurgence in the past eighteen months. Asian consumers have become more willing to spend money on luxury goods while the arrival of major fashion houses such as Hermes in the market have helped to attract a new type of customer. "Generally speaking the luxury market is growing everywhere," Jean-Daniel Pasche, president of the Federation of the Swiss Watch Industry, told the BBC."You can see growth in the market for all luxury goods items worldwide because more and more people have the means to afford such products." Exports to Japan doubled last month while sales to the US, the industry's largest single export market, increased 44%. This helped to offset a relatively poor performance in Europe where sales - affected by Germany and France's economic woes - are lower than they were in 2000. 2005 was a record year for Swiss watchmakers, the value of sales rising by more than 9% year on year. This was achieved despite total sales remaining largely flat in volume terms. Chinese threatThe Swiss industry is facing stiff competition in the cheaper end of the market from Asian producers. Manufacturing costs have also risen with producers having to meet more stringent environmental regulations. According to the Federation, China now accounts for eight in ten watches manufactured globally. Much of this success, Mr Pasche said, is down to improved marketing. Advertising has become more contemporary while companies such as Christian Dior and Gucci have lent their brand name to Swiss watches, in some instances setting up their own production lines. "Marketing is very important and brands have done a lot in the last few years to communicate their products more precisely," he said. "You have to convince people to buy a watch instead of spending money on a car or a holiday." |