LVMH Watch Business Is Shrunk In 2015 Or Warmer

In recent days, Jean Claude Biver, head of the LVMH watch Department of the French luxury group, said in a Bloomberg interview that in 2014, LVMH declined by 20% in the high-end watch market in China. But he believes that the Chinese market will not be as weak as 2014 in 2015. With the demand for high-end customers rising, the luxury watch market will stabilize this year.

Last March, Jean Claude Biver was appointed the head of the LVMH watch department to take charge of the watch brands of Yu Bo, Hoya, Zhen Li Shi and Bvlgari.

In the view of Biver, China's fastest - growing middle class is very important. "China's middle class is more than two countries in France and Germany, and they will help to stimulate the recovery of the wrist watch industry."

In 2014, the government's anti-corruption campaign had a lasting impact on the "luxury gift wave", and luxury watch brands lay guns.

In January 15th, Richemont, which owns Cartire, Jaeger Le Coulter and Jaeger Le Coulter, announced its third quarter financial results in fiscal year 2000.

Year-on-year performance fell sharply.

Watches brand performance is particularly poor, sales fell by 4% year-on-year exchange rate.

A big reason for the group's analysis of such bad performance is the sharp drop in demand in areas such as China's Hongkong and Macao.

To this end, Cartire announced that it reduced the working hours of 230 local employees in Switzerland, and their weekly rest days increased from 2 days to 3 days.

According to the data released by the Federation of Swiss watch enterprises, Switzerland's largest watch export market was Hongkong, China, which fell 13.5% in November compared with the same period last year, while the Chinese market dropped by 27.6%. China slipped from the third largest watch market in Switzerland to ninth.

The industry is worried that 2014 is likely to be the worst year after the financial crisis hit in 2009.

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For exporters, there is another bad news.

In January 15th, the Swiss central bank announced that it would terminate the lower limit of the Swiss Franc to Euro 1.2, set in 2011, which means that the Swiss central bank will reduce its intervention in the foreign exchange market and allow the Swiss Franc to rise in value, which will bring direct and tremendous pressure on the export of all goods in Switzerland.

Recently, Bain, the world's leading consulting company, recently released the "China in 2014".

Market Research Report.

The report shows that in 2014, China's luxury market for the first time showed negative growth, down 1% compared with 2013, and sales of watches and wristwatches dropped by 13%.

Bruno Lannes, author of the global partnership of Bain and the 2014 luxury Research Report, told the interface reporters that in addition to the impact of the new anti-corruption policy of the Chinese government, another reason for the decline of the luxury market in China is that more and more capable Chinese consumers are shopping overseas. "Lannes"

Bruno lner predicts that the purchasing power of consumers is steadily stabilizing, and the luxury brands are reinvigorating their sales network and changing strategies to meet the needs of Chinese consumers. In 2015, China's domestic luxury market will return to positive growth.

Equally optimistic, there is also Jon Cox, the Swiss investment director of Kepler Cheuvreux, an investment agency. He said, "I think the watch industry will grow by 7%, and sales of high-end goods will grow faster and 8%."