August 11th, 2011
Insight to the Status Quo of Watch Market and Chinese Impulse Buying
The Chinese watch brand Fiyta gave up the plan of directed additional shares as its share price has been lower than the issue price, suffering from the global financial crisis. Meanwhile, some Swiss luxury watch brands open more new branches in China and other countries.
This article has more say on the status quo of watch industry. The impact of financial on watch cost above 300,000 RMB is the smallest. According to the famous Hongkong watch collector Mr Yonglin Zhong, the financial crisis has certain impact on watch industry. However among luxury goods, watch industry suffers smallest impact. As far as he knows,Rolex Yachtmaster II Replica, from October last year to February the years, the overall luxury watch sales decreased by 20%, the sales of luxury cars dropped by 50% to 60%, and the sales of yachts, in particular, dramatically slumped.
One scholar holds that watches today are the fusion of timing function,Breguet Replica, conspicuous function and value-keeping. Under the financial crisis, the conspicuous function is left aside while the value-keeping function is given greater importance. Except gold, the high-end watches made of precious metals or paved with diamonds, as the collecting items of stable value, now find favor of consumers. That is why watches of higher value now are highly sought after. The consumption level of fashion watches,on the other hand, will go down obviously. According to the data from Swiss Watch Federation, the Swiss export volume decreased by 22.4% in Feb,2009. The export volume of watches above 3000 Swiss francs was in smallest decline in 6.6%. Meanwhile, the export volume of watches between 500 to 3000 Swiss francs slumped by 50%.
In the near future, more independent brands,Panerai Replica Watches, especially those minor brands, will go to the arms of big financial groups for better shelter. It is believed by many that big groups of diverse products and brands can better resist risks. The Swatch Group, for example, having an extensive brand line that covers high-end, mid-priced and low priced watches, can handle itself in all situations by shifting risks among products in different layers. According to the 2008 annual report of Swatch group, the profit only decease by 2.7%.
The luxuries consumption habit in certain areas of China is called Northern Consumption. The Northern people, not like calculating Hongkong people, normally tend to impulse-buying. For example, in a period when the supply Rolls-Royce car was quite tight in mainland China, a rich man said to the dealer: ” I can add 500,Bvlgari Replica Watches,baby phat sunglasses,000 RMB to the original price if you sell me a car. ” That is the many reason that many luxury watch brands try to develop Chinese market. But some famous watch lovers think different. They do not think Chinese consumers have impulse-buying behaviors. While many luxury watch consumers aim to make investment or enrich personal collection, Chinese tend to gift consumption and self-award consumption. It is a tough world. To buy luxury goods is a good way to to pamper yourself.
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