Luxury Swiss Watch Brands Requesting Government Financial Aid
The luxury market appears to be drowning further down as now Swiss watch makers are apparently affected by the alleged lack of sales. It is previously discussed that leather goods and fashion brands are affected by this.
The luxury market appears to be drowning further down as now Swiss watch makers are apparently affected by the alleged lack of sales. It is previously discussed that leather goods and fashion brands are affected by this.
According to Bloomberg, Swiss luxury watchmakers, including Girard-Perregaux and Ulysse Nardin, are seeking government financial aid due to declining demand. The Sowind Group, which owns these brands, has placed 50 of its 320 workers on short-time work. CEO Patrick Pruniaux described the situation as a “small watch crisis.”
The Swiss state program pays up to 80% of workers’ salaries to prevent permanent job cuts. The watch industry, especially in China, has seen a sharp decline in demand. Despite efforts to navigate the slowdown, the industry may only see partial recovery by 2025. The program aims to support manufacturing industries like watchmaking.
Luxury Swiss watch brands requesting government financial aid
Furthermore, it appears that these brands may have increased their prices to astronomical levels. Thus, it may lead to a decline in sales as consumers are swaying away from these companies.
Oddly enough, a watch from Ulysse Nardin can set you back at most RM200,000 per piece. But, the company is not as popular as Tissot, Rolex and other high end or entry level watch brands.
For what they charge their margins are large. Poor management if they are already hurting
— Brian 🏴☠️🦍💯 (@BrianCh70046490) September 4, 2024
Unfortunately for the employees of some of these brands, layoffs are beginning. It is a sad reality for these heritage brands but, some may see it to be of poor taste for them to be asking their government for aid. Additionally, some social media users are alleging that these brands may be victims of mismanagement.
Comment
by u/Dark1000 from discussion
in Watches
Now, Redditors add that the prices of these watches are a lot more after being adjusted for inflation. Others argue that the industry desperately needs a correction because the prices do not reflect the value customers receive.
Regardless, the prices are at an all time high now, and the resale market would be of good assistance for those who are interested in these watches. Especially to those who are not interested in paying full price for their timepiece.
Johan Chairil