Rui Table Demand Weakened: Cartier Cut Production Tag Heuer Layoffs

In the face of the three major export markets, China's mainland has been actively fighting corruption and Hongkong's political turmoil. Swiss watch brands have resorted to negative measures to protect themselves. Cartire, which belongs to the world's second largest luxury group, Compagnie Financi re Richemont SA (CFR.VX), Cartire group, said last Friday that the brand will be cut down due to weaker market demand. The specific measure is to reduce the working hours of 230 employees from a tabulation workshop in Switzerland to Thursday every day. A spokesman for the brand said that the decision to reduce production is "aimed at protecting employment", "in the current economic environment" is a "necessary" measure, and the brand has not yet decided the time limit for production cuts.

In addition, the world's largest luxury group LVMH Mo t Hennessy Louis Vuitton SA (LVMH.PA) MOET & CHANDON Hennessy Hennessy LV watch department director Jean-Claude Biver revealed that Tag ha will also reduce production, while cutting 46 management and production positions and placing 49 employees in partial unemployment.

Rui's export growth has been slight in the past two years, and its overall growth rate has been only 2.7% since 2014, far worse than the expected 4%-6% of Jean-Claude Biver. In August, the export volume dropped by 0.2% to 1 billion 493 million 400 thousand Swiss francs due to Hongkong's emergency.

　　 Julius Baer Group Ltd. Patrik Lang, an analyst at Baosheng bank in Switzerland, told Bloomberg that the current export situation of "Rui" is "obviously worse than that of 2009", and Switzerland has 6. Tabulation Cartier Cartire, a workshop of about 1600 employees, also cut production for several months in 2009, when it involved 500 workers. He believes that the industry will not be able to recover in the next few months, so brands need to take measures to control inventory.

According to the results of the first five months released by the Compagnie Financi re Richemont SA (CFR.VX) in the middle of the month, up to the end of August, the hard and luxurious market in Hongkong was already at the end of the road. The jewelry department of Cartier Cartire only recorded a growth of 2%, while the overall sales of the group grew by 4% (excluding exchange rate effect), which was less than 6% of the market forecast and 9% of the same period last year. It also hit the lowest value in the same period since 2009.

It is expected that as Hongkong's "occupy the central" campaign severely hits mainland tourists' consumption in the national day of the national day and the political struggle that is hard to see, it will further deteriorate in the Greater China region.

However, Jean-Claude Biver points out that not all brands are in the cold winter. The Hublot Hublot watch has achieved double-digit growth as of August, so it may even create new jobs. As for now, we are not going to lay off staff when we are going through the framework of censorship.

At the time of the deadline, Compagnie Financi re Richemont SA (CFR.VX) fell 1.68% to 79 Swiss francs late on Monday, while LVMH Mo t Hennessy Louis Louis (1.83%) fell 1.83% to 128.45 euros.