The Chinese Market, An Insider’s View with Chow Tai Fook, China’s Leading Company
The Swiss watch industry is currently facing stagnant sales and a decline in exports, particularly to China, which has historically been a significant market. In 2023, China and Hong Kong imported over CHF 5.1 billion in watches, surpassing the US market. Despite this, recent data indicates a continued decrease in Swiss watch exports to China, prompting industry analysts to seek insight from local market leaders. Chow Tai Fook, a major player in the jewelry and watchmaking sector, reports a resilient performance despite the challenges, attributing the decline not to a weak market but to a transitional phase where consumers are becoming more selective in their purchases. Christopher Cheng of Chow Tai Fook emphasizes that the decline in watch sales should be viewed in the context of previous market conditions that were unusually favorable. He notes that while domestic demand surged during border closures, the current landscape reflects a more discerning consumer base. Cheng also points to the growing interest in Chinese watchmaking, suggesting that with a mature supply chain and talented professionals, the potential for establishing high-end Chinese watch brands is realistic. The evolving market dynamics indicate that success will hinge on understanding consumer behavior and fostering local talent while blending cultural identity with global sophistication in luxury offerings.
