Swiss watchmakers expect a weak U.S. market in 2017

Swiss watchmakers expect the market to stay challenging this year with the United States, their second-biggest market, showing no signs of recovering, executives told Reuters at an industry fair in Basel. Swiss watchmakers are grappling with declining sales in their biggest markets — Hong Kong and the United States — and have been hit by tourist shoppers avoiding Europe for fear of extremist attacks. The trend for shopping online has also kept buyers out of stores, said Efraim Grinberg, chairman and chief executive of Movado Group Inc. “We see a [...]

Read More

Integration between brick-and-mortar and web retailing – a priority for luxury brands

In 2016, the total number of luxury goods and services consumers worldwide reached 415 million, and they spent €860 billion. The tip of the pyramid is made up of 17 million individuals, nearly 4% of all luxury goods consumers. They spend between €36,000 and €50,000 per year in luxury items, and accounted for 29% of the world’s overall luxury goods purchases. According to the BCG‘s study, in 2023 their number will rise to 490 million, and they will spend €1.185 trillion. The market is expected to keep growing, though at [...]

Read More

The future of luxury retail expansion

Luxury hubs such as New York, London, and Paris are very likely to sustain their density of luxury stores. But brands urgently need to examine the efficiency of their existing store networks—especially across Asia, and particularly in light of the effectiveness of e-commerce. Those are among the key findings from new research conducted jointly by The Boston Consulting Group (BCG), one of the world’s leading management consulting firms, and Bernstein, the research arm of AllianceBernstein. The research draws from BCG’s proprietary Metroluxe Index, which assesses opportunities for luxury sales by [...]

Read More

Fitch: China luxury sales improve

China’s recent recovery in luxury spending may boost sales of domestic department-store operators and luxury-goods retailers, including Golden Eagle Retail Group Limited (BB-/Negative), Hengdeli Holdings Limited (B+/RWN), and Parkson Retail Group Limited (B-/Negative), though it may not be enough to offset the effects of structural problems caused by changing spending patterns and competition from new retail formats, according to Fitch Ratings. Reports from international brands such as Coach, Inc. (BBB/Stable), Swatch Group and LVMH suggest luxury spending in China is beginning to recover after a few difficult years caused by [...]

Read More

Sales of luxury Swiss watches dropped by 10% in 2016

Sales of luxury Swiss watches dropped by 10% last year following a crackdown on corruption in China. The Federation of the Swiss Watch Industry said 2016 watch exports fell by more than 2bn Swiss francs (£1.6bn) to SFr19.4bn as the Chinese bought far fewer luxury watches, which have been used to grease the wheels of politics and commerce in the world’s second-largest economy. It was the worst year for the Swiss watch industry since 2009, when sales declined by 22% due to the global financial crisis. The federation said sales [...]

Read More

CPP-LUXURY iOS App