State of the Industry: The Luxury-Watch Market in China After the Pandemic
By far the most important markets for luxury watches, China and Hong Kong together accounted for over 21% of Swiss watch exports in 2019 according to trade body Federation of the Swiss Watch Industry. Add to that Chinese travellers who buy watches overseas, and the fact is the luxury-watch business is dependent on Chinese demand. So the crucial question for the watch industry’s future – what’s happening in the Chinese watch market post-pandemic? On May 10, one of the trending topics on microblogging platform Sina Weibo was the US$30 billion plunge in the net worth of LVMH chief Bernard Arnault, mirroring the sharp drop in LVMH shares. But barely a week before – exactly a month after the end of Wuhan lockdown – there were nearly 100 customers queuing outside the Louis Vuitton boutique in Shanghai’s Plaza 66, all eager to shop before the brand’s price hike. The line outside Louis Vuitton reflected the rebounding demand for luxury goods in China as it emerged from a lockdown. “Macro Data Indicates a Surge in Consumption” – read the headline in the business-focused Workers’ Daily newspaper on May 16. The sentiment is backed up by the latest data from the National Bureau of Statistics of China published in mid June. Though the statistics indicate retail sales of consumer goods declined 13.5% on a nominal basis from January to May, totalling RMB1,387.3 billion for the year to date, the monthly figures indicate a recovery is underway. The monthly numbers s...
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