Li Feng Group Cut Wages And Cut Production And Move Away From Switzerland.

Based on the poor performance of the Chinese market and even the drag, the world's second largest luxury group, the peak group, began to reduce production at the end of last year, shortening its working hours at the Cartire watch factory in Switzerland, and working hours of 230 workers every Thursday, in view of the weakening demand, and in order to protect profit margins, Cartire began to reduce production indefinitely at the end of last year.

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Deterioration, inventory in fiscal year 2015 as high as 22%, chairman of the group

Three executives have been shown to take the lead in a pay cut, while employees will impose a freeze on pay growth. At the same time, the group is more than the start of the cost reduction plan.

At the same time, the group also announced that the price of its jewellery and watches in the euro area increased by 5%.

Stanislas de Quercize, chief executive, said the prices of related products in Switzerland would remain stable.

In addition, other brands of watches and jewellery will also follow the price increase in the euro area, or within 5%-7%, according to the Richemont SA CEO.

According to the results released by the group last November 7th, the net profit of /2015 in the first half of 2014 (April 1, 2014 to September 30, 2014) reached 907 million euros, down 23% from the same period last year, and sales increased by 5 billion 430 million euros, an increase of 2%.

In the specific category, the overall sales of watches increased by 2% over the same period last year, but Cartire watches were weak.

From the data of the luxury brands of the group, China's performance has obviously been delayed.

In the Asia Pacific region, which accounts for 38% of total sales and second of the second largest markets of the group, the sales in Hongkong and the mainland of China dropped by 4%. Fortunately, the performance of other regions slightly offset the weakness of Hongkong and China, and the overall sales in the Asia Pacific market dropped by 2%.

As the Asia Pacific market deteriorates, sales fall into a slack and profits decline, Johann Rupert, chairman of the group, has a negative attitude. If the current situation is grim, it is also a matter of life and death. But it is convinced that its team can survive and tide over difficulties, and that Switzerland is a good place to do business.

Indeed, the analysis is that for Swiss watch manufacturers, it is particularly difficult for them to label Swiss made products as quality assurance as the biggest selling point. Therefore, it is not advisable to move the product manufacturing abroad to the obvious way to deal with the strong Swiss franc.

After all, for Swiss consumers, Switzerland's life is made in Switzerland. If the watches are moved abroad, especially in mainland China, consumers will pay special attention to the place of origin. Once they move away from Switzerland, they will soon be abandoned by mainland consumers.