Blocked Sales In Switzerland, China'S Gold Rush.

In recent years, the Swiss watch company has opened hundreds of shops in China. < p >

Now, some companies are facing a backlog of inventory and begin to narrow their retail businesses in China.

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< p > "the gold rush in China has passed."

Francois Henry Ben Nanya, chief executive of Swiss watch company, said, "we need to reduce our business in China, and we will be more careful every step of the way in the future". "Audemars Pigeut,"

The company has 22 stores in China and now closes 6 of them.

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The data released by the Swiss watch industry federation showed that in the first quarter of this year, Switzerland's exports to mainland China fell 26% from last year to 343 million US dollars. P

John Simonian, a watch retailer in Losangeles, said: "they have done too much in China and think that it is not a problem to open forty or fifty new stores at once.

In China, watches and stores are full of stock and can't guarantee that they can sell them all. "

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Less than P, wealthy Chinese travel more and more choose to shop abroad.

According to a survey released last December by McKinsey consultancy, about half of Chinese spending on luxury goods is outside the mainland.

Therefore, Ben Nanya said, "the 50 square meter store in Paris may be much more important than the same 50 square meter store in China."

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< p > although Swiss watchmakers have reassessed the Chinese market, in fact, according to a survey released last December by Bain consulting, Chinese consumers have increased spending on luxury goods to 25% of the world, while American consumers account for only 20%.

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< p > some business executives say that luxury companies should not only focus on China's purchasing power, but also pay more attention to changes in China's tourism and consumption habits.

Jonny, the founder of another Swiss watch company, Michael Nirupama, Jonny, said: "I think some people have invested too much in China, without taking into account the fact that Chinese people are buying elsewhere. They are doing this to avoid high taxes."

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< p > in mainland China, luxury tax varies from 20% to 70%.

Nick Hayek, chief executive officer of Swatch group, the world's largest watch company, said that a certain degree of cooling in the Chinese market is inevitable. "A market can not grow by 30% annually."

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< p > but he distinguishes the current situation of luxury brands and the real growth opportunities still exist in the middle and low market.

Constant, one of Geneva's watch company's founder, Peter Stas, said: "for the usual gift list, there is a real problem in China, but the middle class is still spending."

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"P", when China's domestic consumption declines, the European watch business owner welcomes Chinese tourists.

Marcello Angeletti, the owner of the Angeletti watch shop in Rome, said: "when buying a variety of watches, most Chinese people already know what they want when they enter the store."

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