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Reported that the Swiss watch is still dependent on the Chinese overseas travel purchase table increased

Release date:2017-06-07

Swiss Watch Industry Association (Fédération de l’Industrie Horlogère Suisse,Referred to FH) In its annual report, the distribution of the Swiss watch in 2013 was provided throughout the world. The report confirms that the Swiss watch exports to China fell by 12.5% in 2012. However, further analysis of the above data (and a new report on the Chinese interest in luxury watches) will find that China is still driving the growth of the watch industry and will continue to lead the development of the industry in the coming years.

Analysts said the reduction in watch exports to mainland China was due to the growing number of Chinese consumers recognizing that VAT (VAT), import tariffs and 20% of China's total consumption tax on watches were more than 10,000 RMB ($ 1,600), which pushed the price of imported watches to the point where it was unattainable. As for another reason, it is because the Chinese people more and more to those watches selling much cheaper countries travel.

According to a study published in BusinessWeek in January, China's outbound tourism in 2013 reached 97 million, much higher than the 83 million in 2012. In addition, the number of holders of passports in China is also increasing rapidly. A report published last month by China Youth Daily shows that buying luxury is a "big reason" for Chinese citizens to travel overseas.

Erwan Rambourg, co-head of consumer and retail research at HSBC in Hong Kong, said: "These luxury goods have been sold in China because people do not know where the price gap is so Big."

"Now, that do not know the luxury should not be bought in the country and the Chinese consumers to buy abroad can be described as rare.

Although the Swiss watch exports to China fell, but the Chinese tourists often go to countries and regions, exports have increased dramatically.

FH's report shows that the Swiss watch exports to the United States over the past two years increased by 12.8%, exports to the UK increased by 44.5%. As for the shrewd Chinese tourists as high-end tourist destination in Korea, the same period the Swiss watch exports increased by 35.6%.

"It is not the case that luxury and reciprocity should be Chinese," he said, "people are taking a balance between luxury and China." In the luxury goods industry, sales from China Accounting for 8% to 10%, while sales from Chinese accounted for about 35%. "

The Chinese interest in luxury watches is increasing dramatically, this view in the digital luxury goods group (Digital Luxury Group, referred to as DLG) recently published "2014 Global Watch Report" (World Watch Report 2014) also confirmed. DLG is a strategic and research firm headquartered in Geneva. The report pointed out that last year the global search for luxury watches 23% from China, the proportion of higher than any other country, higher than the data in 2013 59% higher.

The report also shows that China's interest in women's watches increased by 145%. In addition, according to Baidu (Baidu) statistics, 2013 China's luxury watches every day, the number of search requests for 8.4 billion times. Baidu is a Chinese Internet search service provider, the company also participated in the writing of this report.

Some experts believe that, according to the above findings, assuming that China's unbearable domestic tax remains at the current level, the current trend will continue.

"We think the biggest challenge is not to develop the demand for luxury goods in China, but to increase the consumption of luxury goods in China, that is, we," said Pablo Mauron, general manager of DLG China. The growth of the future is still optimistic, this is because (usually is defined as the north of Guangzhou and Shenzhen first-tier cities compared to) second and third tier cities to a large extent has not yet been developed, on the other hand is because the luxury China 's purchases of goods are increasing.

Some people think that the Swiss watch exports and China's domestic purchase between the disconnect may not last a long time. Zahra Kassim-Lakha, head of global strategy at Jaeger-LeCoultre, said: "As with all markets, there may be a lag between buying and buying or buying again effect."

The decline in exports to China means that some of the brand's spending in China is too large. However, it seems that no one is worried about this issue - in the travel abroad to keep their product reputation is part of their business strategy. This strategy seems to be effective.

"We have overruns in China," said Jean-Marc Pontroué, chief executive officer of Roger Dubuis, a high-end watch brand in Geneva. "Our communication budget and sales in China are far Higher than the rest of the world, because we believe that we need to stay in front of visitors, so they will buy our products when traveling.We think that China is not a business area, but we at least 40% of the standard business Aimed at the Chinese people. "

Another factor that contributed to the decline in exports to China was the impact of Chinese national presidency Xi Jinping's anti-corruption campaign. Since the beginning of this campaign in 2012, in the course of the transaction to luxury watches as a gift to the phenomenon has been drastically reduced.

"If you turn your line of sight to a higher-end watch, the risk of such a watch as a gift is that the target person of the gift may have nothing to do with the brand," said Lambert, "the lower price of the watch will not be used for gifts know."

Juan-Carlos Torres, chief executive of Vacheron Constantin, affirmed this statement. He said: "Our brand is not used for corruption. To understand our brand culture, we must have a certain level of knowledge. Most of our Chinese customers are individual consumers, they even give gifts to friends, not as a business Or part of a political deal. "

Torres's brand in China has 15 boutiques and 12 points of sale, he said the sales from the global Chinese circle accounted for more than half of global sales. "There is no slowdown in the number of Chinese customers in the world," he said.

According to the "Global Watch Report", China's interest in high-end watch brand increased by 13.16%, this increase over any other country. Which Vacheron Constantin's increase reached 34.59%. This rapid growth is largely due to the explosive development of mobile phones in China. According to Baidu's record, 2013 mobile search for high-end watch brand increased by 120%.

The report shows that the mobile side of the most frequently searched high-end watch brand is Patek Philippe (Patek Philippe). For the brand CEO Thierry Stern (Thierry Stern), this fact constitutes a reason worthy of optimism. "Chinese customers have a strong desire to buy high-end watches, which is a sign of future long-term market potential," he said.

DLG research shows that the luxury watch industry can not be misdirected in China (more precisely, Chinese consumers) increasingly dependent. According to Asia's leading independent broker and investment group CLSA (CLSA) estimates that by 2020 China's overseas tourism will reach 200 million people per year, more than the current number doubled. For luxury brands, this will be their hope.

Summary of points

"Global Watch Report 2014"

● Global consumer interest in luxury watches increased by 5.7% in 2013.

● China to the total number of 23.25% of the number of searches topped the list, an increase of 59.43%.

● The United States and the United Kingdom accounted for 20.69% and 10.04% of the total number of searches in the second and third place.


● "BRIC (Bric)" performed well, of which China, Russia and India are the most significant year-on-year growth. However, Brazil fell by 2.9% in the four countries, and this will be a worrying issue for the country that will host the World Cup this year.

Rolex, Cartier and Omega are among the most searched brands in China.

● The highest interest in women's watches is China (up 145.50%), India (up 27.65%) and Russia (up 11.67%)