Luxury watches segment, to continue negative trend
As predicted by CPP in december, last year, at the beginning of the crisis, the luxury watches segment is one of the most affected, both at a regional and also at a local level.The main active players on the market are the distributors who own their own shops. The issues are generated by building stocks, especially for exclusive distribution where one is forced to constantly buy stock no matter the sale figures.
Galt si Helvetansa are two of this kind of companies in Romania that are building stock and that have decreasing sales. Helvetansa is moreso affected as the partent company, La Boutique Suisse, has decreasing sales in the whole region, especially in Budapest and Prague.
Problems are even bigger in the Ukraine and in Bulgaria, where sales are down 35 percent on this segment. In our opinion, luxury mobile phone sales will also drop, especially Vertu, the most established brand.