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Geneva International Watch fair is one of the world’s top two watch fairs in March, and another top watch fair held in conjunction with the Baselworld watch and jewellery show. However Switzerland’s Central Bank show made a shocking move four days ago, it decided to terminate the three-year system linked to the franc-euro exchange rate, which makes Swiss franc back to previous state–soaring, which Switzerland threatens watchmaking, Geneva International Watch fair also cast a shadow. The surge in the Swiss franc, Switzerland’s watch industry what effect? Switzerland’s watches industry what are the eye-catching new product, how they cope with the crisis? Fashion headlines for your comprehensive coverage.
In 2014 in the first 11 months, Switzerland watch exports rose 2.3 per cent, to 20.4 billion francs, according to average exchange rates or 22.44 billion dollars, according to a record is not too bad, sales in major markets have raised, United States is particularly prominent.
In China, due to the economic slowdown, the Government against giving, while watch market all the more important, but fraught with uncertainty. Hong Kong, Switzerland watch manufacturer’s largest market is still not transparent, Russia and parts of the Middle East are subject to geographical and political conditions and concerns. And to make matters worse, in many European countries due to the fiscal crunch arising out of various political factors, the market virtually stagnated.
However, Switzerland’s Central Bank lifted on 15th 1.2:1 of the Swiss franc against the euro ceiling. The implementation of a three-year end Exchange rate policy all of a sudden, stunned global markets. This pushed up the franc, Switzerland watch manufacturing industry posed a grave threat.
14,500 dealers, exporters and interested parties are trying to find a way out, Richemont group–the driving force behind the Geneva International Watch fair, after spent some time studying pointed out that it watches or jewelry brand such as Replica Cartier Watches and Piaget, their prices in euros will rise from 5% to 7%. The other hand, as a competitor and the Basel world watch and jewelry show exhibitors swatch (Swatch) Group also said the price increase is roughly level, are likely to rise to 10 per cent, despite its cautious about some low end brands.
Appreciation of the Swiss franc emergency, Switzerland watches prices watch businesses are injured. Diagrams to show the transaction site.
Ever since the Bank to take such action, already stirring period of stability francs against the euro to rise between about 20, leading Switzerland watch manufacturers faced a very vulnerable period. In order to satisfy the planning requirements, and respond to the parts shortage caused by a third party, suffers from the pain of continued heavy investment in the industry. Numerous manufacturers invested heavily in professional production, such as clocks, watch cases, watch bands, or even whole parts, these parts from elsewhere before purchasing. Top brands owned by Richemont. Vacheron Constantin will be held in Geneva in August, both expanded. The extra top brands Earl’s expansion will be completed a year later. Before the show, independent watchmaker “Patek Philippe” international Haute Horlogerie in Geneva said it would spend 450 million francs on the exhibition site, or according to the current exchange rate is $ 513 million.
Watch manufacturers did not bring the full effect of the appreciation of the franc to the euro zone dealer, which reflects they prefer to accept lower profits, are reluctant to endanger long term growth effects and dealer relations. If you attempt to transfer all this, for the euro area market will bring a compact base. In contrast, instead, if you do here not make any adjustments to encourage original area or “grey area” import Switzerland, clocks in their local pricing in euros will take away their business.
Not surprisingly, monetary impact of eclipsed everything at the fair, which also includes Apple SMARTWATCH product discussion, originally expected this would be a subject worthy of study, but in the end which almost nobody mentioned. Primary discussion fell to has price rose when will to cannot control of topic Shang: some brand said they will immediately take action; another some brand is recommends until February even March again decided whether action, first let euro area of dealer cleanup existing of inventory, if may words, also can from this short of sales boom in the profit, because buyers certainly will lock price rose Qian of products.
“For now, we will not take anything measure”, independent watchmaker Parmesan Johnny CEO Jean-Marc Jacot said. He said, share the pain with super minimal profit for dealers is reasonable and accurate, although 50% does not take any measure can still profit, compared to other brands of the same decision, they also have a 40% profit.
“Is usually the best way is to do nothing and let nature run its course. This is no longer a crisis, but currency adjustments. “Vacheron Constantin in an experienced Chief Executive Juan Carlos Torres said with approval. Torres in Geneva International Watch fair was released on limited-edition Harmony series, celebrates the establishment of 260 years, this set of limited edition products priced from $ 43,800 dual time zone tables to the value of $ 314,600 Tourbillon chronograph range.
Another burning issue is the price-sensitive customers about rising prices reflect the problem. Everyone knew that a price increase to provide support by the end of this practice is the least flexible. They take into account the views of the affluent customer base. Exclusive brand of the Richemont group “hijab” President Jean-Marc Pontroue admitted: “currently difficult to predict the outcome. Future Switzerland of Chinese money will decrease? Whether in Paris or Frankfurt will more people choose to buy? To be fair, I have not known. ”
For those products cost up to 100,000 Swiss francs, he believed that as long as the products are valuable, hence customer base will not care too much on price. In contrast, Gao Pofu more high-end brand one of the founders of StephenForsey has been more cautious. Forseti unveiled a $ 290,000 francs “early into the” brand watches. (compare the cheapest brand original watch worth 320,000), said: “we will do our best to bring in some customers cannot resist series. Value but also tells them where they are. ”
Brand’s Chief Executive, believes that Switzerland has already stood the test, and confidently tell you and most of all in the same boat. Even Wilhelm Schmid, Richemont, is different from ordinary Germany manufacturing (non-Switzerland made) A.Lange and Sohne brand President, and looks forward to this currency impact, the sector part of its products from Switzerland. Was also prompted by this Lange investment in new facilities, Schmid opened the Zeitwerk Minute Repeater, a different striking watches, traditional knitting and mechanical figures in one, 440,000 euros, or $ 501600, said, “if we have no confidence in it, would not have made it out. ”
Rapid development of Richemont, IWC subsidiary Georges Kern, Chief Executive, said: “Switzerland, as usual, will learn how to handle this. Our high production efficiency, team-excellent flexibility, economic openness, there are a series of problem-solving experiences. “Like everyone else, he believes that the recent Euro drop against the franc will continue to evolve. Count Philippe Leopold-Metzger, Chief Executive, added, “we have seen the euro-franc dropped from 1.6 to 1.2, we have also adjusted. No matter what the difficulties, problems can be solved as long as there is a good product. ”
Many people emphasized that will have more affluent consumers in the world, the fundamental trend will ensure demand for watches. High-end jewellery and watch brands of Richemont Group President Nicolas Bos VAN Cleef& Arpels say: ” the medium term or long term. We are still very positive. ”
“In 2015 will not be much development of the market will remain stable and may even decline. The market share is going to be a battle. “Francois-henry Bennahmias, President of independent watchmakers Piaget cautions that he and many other Presidents have mentioned that the franc will inevitably require us to refocus on cost.
Bennettitis confidence as long as the product has value, their demand will hold. He said: “to carry all the top brands as examples–such as those priced above Rolex, Omega and Breitling brand, most of them from last year’s sales of not more than $ 600,000 to 700,000. So, it is still a lot of potential buyers are waiting for us, if all you do be correct, that only shows that the market is not open. ”
Who has not announced new products will make us more conscious, more ladies watches and jewelry products, which in the last year the show has been regarded as a tendency. Cartier, heavy head watch and jewellery brand of the Richemont group, unveiled more than more than more than 100 new products, especially Ms Cle De Cartie products, focus on simplicity, features a novel, there is a new generation of mobile, there are two size options the two polished lacquer to create, including gold belt, 13,500 euros, or $ 15,120. Baguette diamond impregnated 850,000 euros, or us $ 952,000. Cartier’s global image, tradition, style Director predicted that “next year, the idea is more important than ever. ”
IWC devote space to the intermediate version of the Portonino series, the series has been published in the autumn. Characteristic of the series is on the border of inlaid with diamonds, moon face, and is fitted with an automatic device. IWC original masculine high technology products of the brand are well-known. The series is aimed at the female market, injecting a very important element of diversity. In fact, the series half of its sales in Asia, Kern is verified, he thinks the product has a very brilliant start. He hinted that IWC to develop more products for women, which may also include the popular Portuguese series, as this year’s 75 anniversary of the series.
Ralph Laure is also launching a dominant evening dress series, has two dimensions. The series is highlighting another trend style, inspired by the art decor design, showed Black Suede diamond necklace, diamond version of the tuxedo in this design and echoes. Complementary match between watches and jewelry in the alibi (Audemars Piguet) brand is also reflected, and its highlight lies in the innovative fringes “punk style diamond” of high-end watches are matched, it is priced at $ 879,200, it is said, the studded accessories inspired by the surrounding landscape of the brand, took a total of nine months to build. Bellarmine said, “this is a show that we would like to tell Members that we can break the rules. ”
Van Cleef Albemarle (Van Cleef& Arples) launched a series of Cadenas, completing the creation of a Renaissance. This revival trend dating back to 1935. Series prices range from 18,000, equivalent to $ 20,160 simple gold watches, to 130,000 euros, or $ 145,600 gem product range. “Development of women which still need to be strengthened, which has not yet been fully developed, there is still a large space. “Bos predicted. “But for us, more important is to create one of the elements of surprise, and focus on the function of watching and jewelry collections as a whole, into a piece of jewelry.
Earl, Chief Executive of Leopold-Metzger clear: “women’s market shows great potential jewelry location will continue to be higher than the clock. “He at Geneva International Watch fair showcases its Ultratin Altiplano range of different products, ranging from published price US $ 27,500 for the first time Gold Bracelet, rather than a traditional bent. He made it clear the count trademark in the jewelry increases investment. Two series launches in 2014, will launch two new series this year, which includes the original Earl’s “rose theme” added.
Fluctuations in Swiss francs, the initial reaction of many people in the industry is Switzerland watches will be increased. The reason is straightforward, including Richemont, and several big-name watches Swatch Group’s design and manufacturing work mostly in Switzerland completed, Swiss Watch costs soar in recent years. It is sufficient to have a negative impact on sales of watches. Negative effect has been reflected in the stock market, according to statistics which owns Omega, Longines and other well-known brands of Switzerland Swatch Group the largest table, owns luxury brands such as Vacheron Constantin Jiang companies such as Richemont’s share price fell, most of the decline in 10%.
Switzerland watch brands President M.Busser MB&F said both producers and customers alike. This will not do any good. Only is good news for the financial speculators, entrepreneurs of these truly create value and jobs for us, the situation is more complicated, because there are still many uncertainties ahead.