Not long ago, accompanied by Chinese Premier Li Keqiang visited the earthquake-stricken area in Sichuan before the Lushan county party secretary Fan Jiyue carefully made an important thing: He took off his watch.
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Fan Jiyue concern is understandable. China’s new leadership is to crack down on party cadres xuanfu behavior and curb corruption. Therefore, officials do not want expensive watches for yourself buy online viagra where attracted attention. In China, it is often expensive watches businessmen and officials to curry favor with the gift.
But bad luck is that Fan Jiyue move precisely attracted attention: Sharp-eyed Chinese netizens discovered that wearing a watch on his wrist position left a distinct stamp watch, his wrist is also China empty photo spread on the Internet crazy. Not surprisingly, China’s Internet censors quickly blocked Fan Jiyue Searches related.
Xi Jinping came to power after the fall of this year’s anti luxury gust of wind, has led the Swiss watch exports to China slowed down considerably. Over the past decade, China is the fastest growing market for Swiss watches.
2002, mainland China’s total imports Swiss watches only 94.2 million Swiss francs. By 2012, that figure jumped to 1.65 billion Swiss francs ($ 1.77 billion total), while mainland China has become the world’s third largest Swiss watch buyers.
Also notable is the year the Swiss watch exports to Hong Kong increased by nearly tripled to 4.4 billion Swiss francs. Hong Kong is currently the largest market for Swiss watches. Many mainland Chinese people will go to Hong Kong to buy watches, because Hong Kong is a low tax rate.
But in recent months, this trend has been reversed. In the first quarter, the Swiss watch exports amounted Mainland China fell by 26 per cent, Hong Kong’s exports fell by 9%.
Which in March particularly bad case. Month on the Chinese mainland Swiss watch exports fell by 31 percent, exports to Hong Kong fell by 8%. Citigroup (Citi) analyst Thomas â€˘ Xiao Wei (Thomas Chauvet) presentations to clients, wrote: “This is the Greater China three years one of the worst monthly performance.”
The annual “Basel World Watch and Jewellery Show” (Baselworld) grand opening this week in Switzerland. But surprisingly, the watch industry executives seem leisurely.
LVMH Moet Hennessy (LVMH) brand Zenith (Zenith) CEO let – Frederick â€˘ Dufour (Jean-FrĂ©dĂ©ric Dufour) said: “The business in China is indeed slowing. Entire luxury industry are slowing down.
“But growth will restart. China is moving forward.”
Baselworld Swiss Exhibitors Committee Chairman, Tissot (Tissot) â€˘ President Francois Thiebaud (FranĂ§ois ThiĂ©baud) also hold similar opinions. Tissot Swatch (Swatch) its many brands.
Thiebaud said: “In the United States, because the (presidential) election reasons, every four years there will be a slowdown, but every time after restart growth in China is the same. Chinese leadership transition has just been completed, because people did not mind bottom, so the expenditure slowed down when this feeling weakened, people would begin to spend money. BaselWorld this year’s Chinese people than in previous years. ”
However, how long to restart growth will come is unknown. Kepler Capital Markets (Kepler Capital Markets) â€˘ Swiss research director Jon Cox (Jon Cox) said: “I think the (anti-) at least until the end of the year, there may be longer.”
However, not all watch manufacturers are equally affected the Xi’s anti-extravagance actions. Thiebaud said Tissot is an exception. He believes that the price of Tissot mostly in the 300 francs to 1000 francs between, which is not too expensive and not want to please the giver of officials and businessmen favored brand.
Analysts agree with this view. Cox said: “The (anti-corruption) will primarily affect high-end brand, which is priced at $ 10,000 or more watches.”
However, even in the high-end brands, there are also some escaped the slowdown destiny. The most high-end brand one hundred Patek Philippe (Patek Philippe) CEO Terry â€˘ Stearns (Thierry Stern) said Patek pursue limited production strategy, the demand even higher, every year at most produce only 53,000, so China’s purchases to reduce not What is the problem.
Exhibition booth in Basel watch hanging around those relatively optimistic CEO reason, a big reason is that, although now that the Chinese people in the country to buy watches may no longer be so readily, but they are buying overseas activities continue, particularly in Europe. Thiebaud said: “For high-end brands, people tend to want to buy something manufacture it.”
Watch makers have been able to remain calm, there is a deep-seated reason is that China’s anti-corruption action is often anticlimactic past, the final drop a nothing.
Cox said that even if the anti-corruption action initiated by Xi Jinping more durable than ever before, China’s economic growth and the rise of the middle class will eventually offset the anti-corruption action against illegal gifts behavior.