In the Eye of the Storm – A Letter From Geneva
Switzerland has declared a state of emergency as a result of the COVID-19 coronavirus. Almost everything is closed, including schools, shops, and restaurants, with only businesses offering the basic necessities, like banks and supermarkets, being allowed to open. There is bad news from Switzerland’s neighbours as well; the virus has spread fast in Italy. A recent poll showed that only 8% of the Swiss population feel they are in great danger. I can assure you that 100% of watch brands are feeling the pressure. Many watch factories, particularly the privately-held brands, have shut down completely or are about to. That includes Rolex, which just closed all its facilities for two weeks starting March 17. Watch sales are falling all around the world, with some brands suffering drops of 30-40% in February, and duty-free sales – which are substantial for the watch industry – falling by up to 90% in major airports. We have seen many crises, but this is unprecedented. But the biggest blow to the industry so far – the cancellation of the major watch fairs, Watches & Wonders (W&W;) and Baselworld. Even though very little is actually sold at the fairs, they were universal events that brought everyone together, almost like an annual reunion of old friends (and competitors). The fairs were a major, major part of the larger imagination, so the cancellations feel like a massive blow for everyone in the industry. The accelerating fallout First, the timeline of the virus’ i...
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