Slower economic growth in Mainland China and the government’s anti-corruption campaign in 2013 have casted a shadow over Swiss luxury watch exports to China. According to the Federation of the Swiss Watch Industry FH, the total value of Swiss watch exports to China in H1 2014 recorded CHF 649.4 million, 14.6 percent drop comparing to the same period of 2012. In 2013, the export value recorded CHF 1,446.5 million, 12.5 percent drop comparing to 2012. “However, this indicates huge opportunity for marketing fashion watches in China,” said Jack Quinlan, senior vice president of Fossil Group Asia Pacific.
The traditional watch brands including Casio, Seiko, Citizen, Hamilton, etc takes 85 percent in the Asia Pacific market. But there is a potential for fashion watches such as Guess, Fendi, Gucci, etc, to grow, according to Quinlan.
He explained: “From 2000 to 2010, China had a dramatically growth due to the continuously increasing disposable income of Chinese consumers. The market is identifying more and more with brands. People see brands as a re-assurance of their lifestyle choices and an extension of their personality.”
According to the group’s research, in China market, 58 percent of their respondents buy watches for accessories. “There will be more in the gifting section before the anti-corruption campaign in Mainland China,” he added.
The research also shows that 84 percent of the Chinese consumers are buying watches as a fashion item, only 16 percent for functional reason. Consumers are expected to pay US$300 to 800 as their ideal price range while comparatively, in the US market, consumers are only willing to pay 55 to 90 percent of the said amount to buy a watch. “This difference shows why Asia Pacific has such an opportunity for fashion watch brands to explore and why China market is so important for Asia Pacific, “Quinlan concluded.
Photos Courtesy: HKTDC
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