Patek Philippe Looks towards Asia for Luxury Sales

At the world’s biggest watch and jewels show in Basel on Wednesday, chairman of Geneva-based watchmaker Patek Philippe, Thierry Stern told Reuters that Asian market was their concern, if something went down, it would cause a great problem. According to an analyst China is the sole growth driver in the watch industry. But Wen Jiabao Chinese Premier cut by half a point nation’s growth target for 2012 recently which is the slow rate of growth in decades. The analyst’s estimation of Asia would account for two thirds of luxury market of watches by 2016, comparatively little over fifty percent of last year growth.

Established brands with the depth of their knowledge of markets and trends are able to be aware of proper directions against dangers of lagging behind. So in spite of slowdown in China the luxury brands like Longines, Omega and Patek Philippe are confident of the situation and they could  recover from the global exposure and United States which helped them sail through challenging market of China and  it has been expected to grow by 8 percent this year. TheU.S. represents 15 percent of sales, whereas Asia 33 percent and Europe 44 percent.
Both Longines and Omega are owned by Swatch Group SA who is the biggest watch maker in the world. These two brands are the most preferred brands by Internet users of China. The slowdown in China would affect recently entered brands to the region with less preparedness to handle the business. Omega has approximately 100 monobrand stores in China which would benefit by the London Games. Stern does not want to depend on one market. Patek Philippe has only two stores in China. However, China would be a friendlier market with its renewed talks which would agree to cut import taxes.

Via: Reuters

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