Over 50 main watch manufacturers, from Rolex and Patek Philippe, to Cartier and Chopard, are presenting their creations on the 2024 Geneva watch honest
The 2024 Geneva watch honest opened amid slower demand in China for fancy Swiss timepieces and timid shopper spending throughout the board on luxurious objects.
The Watches and Wonders salon, which runs till 15 April, sees 54 main watch manufacturers show their newest creations, together with Rolex, Patek Philippe, Cartier, Chopard, Hermes and Chanel.
Brazilian supermodel Gisele Bundchen and Chinese language actor Wang Yang had been among the many stars testing the timepieces on present at Swiss watchmaking’s landmark occasion.
Final 12 months, Swiss watch exports broke data for the third straight 12 months, hitting 26.7 billion Swiss francs ($29.5 billion).
The 2020 downturn attributable to the covid-19 pandemic was shortly reversed by what monetary analysts referred to as revenge shopping for, with customers forking out with financial savings collected throughout lockdowns.
Nonetheless, the expansion in Swiss watch exports has slowed, with exports up 7.6% in 2023, having risen 11% in 2022 and 31% in 2021.
‘Again to actuality’
“I do not wish to say it is a dangerous time; it is somewhat calmer,” Thierry Stern, president of luxurious watchmaker Patek Philippe, advised AFP.
“Possibly we’re coming again to actuality.”
Stern says he stays assured concerning the prospects for his personal model, which stays ever-popular with public sale room collectors.
Per 12 months, “I make 72,000 watches and they’re going to virtually all be bought right here in a single week,” he added, with the salon being a possibility for retailers to replenish their boutiques.
Previously reserved for trade gamers, the salon is attempting to seduce a brand new era of consumers by permitting within the public on the final three days, with guided excursions and an interactive zone specializing in watchmaking of the long run.
The typical age of tourists throughout earlier open days was 35, “which is extraordinarily encouraging”, mentioned Matthieu Humair, chief government of the inspiration that runs the salon.
‘Extra metal, much less bling’
Jon Cox, an trade analyst with Kepler Cheuvreux monetary providers, advised AFP the temper on the salon is likely to be “subdued” this 12 months moderately than “despondent”.
“Given the surroundings, you may even see a back-to-basics strategy by watchmakers: extra metal, much less bling,” he mentioned.
Cox is forecasting a “smooth touchdown” for producers this 12 months with 4 p.c market development.
Nonetheless, after touring the shows, Oliver Muller, founding father of the watchmaking consultancy firm LuxeConsult, mentioned: “I have been positively stunned by the brand new improvements. I anticipated much more warning.”
“I did not see any loopy stuff however plenty of very lovely issues,” he advised AFP.
This slowdown isn’t affecting all manufacturers equally. Probably the most high-end names, like Patek Philippe, depend on a really rich clientele who are usually not notably uncovered to the vagaries of the financial system, that means these manufacturers have continued to develop.
In accordance with a research by US financial institution Morgan Stanley, fashions with worth tags above 25,000 francs account for 69% of development within the Swiss watch trade.
“We’re seeing an total slowdown,” mentioned Karine Szegedi, the buyer trade lead in Switzerland on the auditing agency Deloitte.
“The state of affairs is more durable than anticipated for a sure variety of gamers in watchmaking,” she advised AFP.
“The clientele is extra cautious,” she mentioned, with consumption in China and Hong Kong having “not returned to pre-covid ranges”.
She mentioned revenge shopping for has peaked and inflation, rising rates of interest and even layoffs within the know-how sector are affecting the buyer base for luxurious items.
In an early signal of the slowdown, subcontractors who provide watch parts noticed orders lowered or postponed, mentioned Szegedi.
