Swatch Group Net Profit Fell 21% Hongkong For 12 Consecutive Months Poor Performance

It is understood that the world's largest watch manufacturers, Swiss watch company Swatch group audience more than the impact of the weak foreign market economy, compared with 2014, group net revenue fell 3% to 8 billion 450 million francs, net profit plunged 21% to 1 billion 120 million francs.

In the past two and a half years,

Share prices have fallen by about 50%.

Swatch group owns Tissot, Longines, Blancpain, Breguet and other brands, and the Swiss manufacturing industry is one of the most expensive countries in the world. Affected by the overvaluation of Swiss francs and the weakness of foreign market led by China, the group has been struggling to maintain market share and the profit margin has been greatly reduced.

Swatch Group CEO Nick Hayek believes that the Swiss franc is about creating profits, but in order not to lose the market share outside Switzerland, the group has to accept lower margins.

Despite low profit margins, the Group recorded a profit margin of over 18.8% last year in watches and jewellery.

In the past few years, it has recorded a lower level of performance than now, but the group said it would not lay off or reduce marketing investment to please the stock market.

In fact, maintenance

The quality status must conform to the strict local standard rules, and the core market value of Swiss Quality is also crucial.

But at the same time, these are the predicaments faced by Swatch group. To achieve Swiss manufacturing standards means high production costs.

Chief executive Nick Hayek insists that the Swiss production base will not be abandoned.

According to relevant information, about 90% of the group's products are produced in Switzerland, and more than 150 factories in Switzerland.

Nick Hayek revealed that the group will continue to invest in research and development and produce for all fields, not just high-end luxury brands.

Analysts remain skeptical about the group's expected performance. The Group expects revenue to rise by 5% this year.

By region, Europe's sales slowed from January to February, mainly due to visa problems and economic slowdown.

Asia recorded a strong growth rate and the mainland of China has performed well, but the Hongkong region is in a predicament. It is expected that the region will remain difficult in the next 12-24 months.

Japan and many other Asian countries have recorded strong performances, mainly driven by the Chinese tourists' outbound tourism, and the mainland of China has performed well.

According to recent data from the Swiss Watch Industry Federation, Swiss watches exported in January fell 7.9% to 1 billion 520 million Swiss francs.

The fall was mainly affected by the Hongkong region, which is a key market for Swiss watches. Its sales plunged by 33.1%, a twelfth month sharp decline in the region.

In fact,

It is also declining for 11 months. According to the latest retail sales figures released by the census and Statistics Department of Hongkong, the total retail sales value in January was about HK $43 billion 600 million, down 6.5% from the same period last year, while the total retail sales value in December 2015 dropped by 8.5% over the same period last year.

Among them, the worst hit areas are jewellery, watches and clocks and other precious gifts. Sales of these commodities have dropped by an average of 16.3%.