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Tag: luxury watch

  • Longines Masters of Hong Kong 2019 – a recap

    Longines Masters of Hong Kong 2019 – a recap

    Three days of action brought with them a life’s worth of memories as the curtain came down on the Asian stage of the Longines Masters Paris – Hong Kong – New York intercontinental series. More than 35,000 people gathered across the three days of this year’s Longines Masters of Hong Kong.

    Fittingly, the final day was graced by Hong Kong Chief Executive Carrie Lam Cheng Yuet-ngor, who met the riders and presented the Longines Grand Prix of Hong Kong trophy. Longines Ambassador of Elegance, horse lover and entertainment super star Aaron Kwok was also on hand for the final press conference and to share his thoughts on the sport he loves so dearly – and like one of his live shows, the thrills came from start to glorious finish. The action began with The HKJC Asian Junior Grand Prix, excitement rose with the staging of the DBS Trophy, and then came the event everyone had been waiting for all week – the Longines Grand Prix of Hong Kong. And the premier event brought out the very best from Denis Lynch on Chablis as the Irish rider and his stable newcomer flew around the course. It proved a fitting way to end a fabulous week – and now it’s on to American stage in New York, which among other things will feature the rematch of the Riders Masters Cup, from 25 to 28 April 2019.

    Denis Lynch claims the Longines Grand Prix of Hong Kong!

    The glory on this final day came with the Longines Grand Prix of Hong Kong and a stunning effort from Denis Lynch on Chablis as they finished in front of Simon Delestre on Uccello de Will. But there was so much more also on offer all day.

    It began – at 9.30am – with The HKJC Asian Junior Grand Prix, an initiative from partners EEM, The Hong Kong Jockey Club and the Hong Kong Equestrian Federation that showcased the rising stars of Asian showjumping. It was Hong Kong’s Vincent Zi-Xiang Capol on It’s A Gamble who lit up the main arena on the day, capturing the title after a two-round competition with jump heights raised from 1.00m to 1.10m.

    Next – at 12pm – came the DBS Trophy, a one-round competition that set riders a simple task. On paper at least. To win you had to be the fastest from eight riders to complete a clear round – and on this day the fastest was Roger Yves Bost on Castleforbes Talitha.

    Then it was time for the ultimate event at the world’s ultimate show jumping series. The Longines Grand Prix tests the world’s best against jumps at Olympic height heights of 1.60m, and it provides a true test of technique, of skill and of bravery from both rider and horse.

    In the end it came down to a ride for the ages from Denis Lynch on Chablis, as they cleared all the fences over two rounds. Second place went to Simon Delestre on Uccello de Will – the only other pair to clear all the fences. Along with the US$400,000 in price money the Paris, Hong Kong and New York Longines Grand Prix offers something very special – a Super Grand Slam Bonus of €2,250,000 rewarding a victory in each round of the Series in the same season and a €1,000,000 additional bonus for three successive victories at The Longines Grand Prix straddling two Longines Masters seasons. Irishman Lynch will now head to New York for the next leg in April with that huge bonus in his sights.

    While the show jumping action kept fans glued to their seats all day long, there was plenty more to entertain in the main arena. Presented by MGM, equine artists Frédéric Pignon and Magali Delgado and their Iberian horses continued to leave the audience spellbound with dazzling shows combining music, dance and multi-media. Then there was the appearance of the “golden girl” of the HKJC Equestrian Team as Jacqueline Siu celebrated her history making gold medal performance at last year’s Asian Games with a dressage performance the relived the glory.

    Reflections on three days of fun and fanfare

    Over three days – and nights – the Prestige Village came alive, allowing visitors to indulge and be entertained thanks to fabulous collaborations with the Longines Masters of Hong Kong’s partners and exhibitors.

    Among the many and varied highlights were the first staging of the Asian Hobby Horse Competition and the wild after party hosted by DJ Henri PFR, while visitors were able to immerse themselves in luxury offering from a wide array of brands, while being tempted by gastronomic delights. While visitors were treated to the latest from the likes of Title Partner Longines, Kingsland, Fieldstone, Horse Pilot, Equicty, Hermès Sellier, Asia Marine, Baccarat, Lightfoot Travel, Robert Mark Safaris, KEF, La Mod and Maserati. There were also themed gifts and novelties inside the Longines Masters Boutique, one lucky guest walked away with a trip (flight and accommodation) to New York to visit the Macey & Sons Gallery and the Longines Masters of New York in April 2019, courtesy of Macey & Sons Gallery.

    Save the Children

    Dedicated to promoting equestrian sports on an international scale as well as making a difference by contributing to socially constructive causes, Longines Masters series organizers EEM this year chose to support deprived children around the globe, especially in Hong Kong and China. The Hong Kong leg of the intercontinental show jumping event joined hands with the Sole Beneficiary Charity Partner, Save the Children Hong Kong, with parts of the net proceeds generated from the charity auction lunch, various VIP Hospitality Experiences in a specific period of time and kids’ activities in Prestige Village donated to sustain these marginalized children’s ongoing education, health, protection and emergency relief programs.

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  • Tissot basketball concept store New York opens door

    Tissot basketball concept store New York opens door

    Swiss watch brand Tissot has opened a sports-themed store in New York City. The Tissot basketball concept store is the brand’s fourth boutique in the city, located at 112 W. 34th Street, a prime location in the Midtown neighbourhood. With a 2800sqft area, the boutique has a wall of multi-coloured basketballs, along with action-styled mannequins wearing uniforms of some of the brand’s nine NBA team partners.

    Hung on the walls are photos of the brand’s sponsored athletes, including three-time NBA Champion and five-time NBA All-Star Klay Thompson, four-time NBA Champion and six-time NBA All-Star Tony Parker and top rookie Trae Young.

    Besides shopping, fans can spend their time playing NBA 2K19, watch an NBA game on the large TV screens or try to beat the clock in a mixed-reality Tissot Buzzer Beater game set to debut at NBA All-Star 2019. A custom art installation debuting at NBA All-Star will then find its permanent home in the store.

    “This is a departure from our traditional merchandising strategy, but with our continued partnership growth and passion around the NBA, we wanted to harness that power to showcase our brand in a different light,” said Francois Thiebaud, president of Tissot.

    “We have seen a tremendous response so far from fans and we are excited to see what is to come.”

  • Officine Panerai makes debut in Malaysia

    Officine Panerai makes debut in Malaysia

    Officine Panerai Malaysia has opened its first store. The Italian luxury watchmaker’s new boutique is the brand’s 81st worldwide and fourth location in Southeast Asia, forming part of Panerai’s strategy to boost its market in the region. It was designed by Spanish architect Patricia Urquiola to depict Panerai’s naval and wartime heritage.

    “Together with partner Swiss Watch Gallery, we look forward to providing an exceptional experience for our clients and conveying our values and Swiss know-how”, said Panerai Southeast Asia and Oceania MD Giacomo Cinelli at the launch.

    “It’s a little exhausting for the local watch collectors here to keep having to travel to a Panerai boutique, so we are here for our existing clients and we provide an entrance and platform for the new ones as well”, he said.

    Submersible timepieces feature prominently in the store’s range, retailing from RM57,700 (US$14,180) to RM168,470 ($41,400).

  • Place to reate your own watch

    Place to reate your own watch

    The Mills officially opened at the end of 2018, becoming a new landmark that combines historical and cultural retailing, attracting a number of local brands in Hong Kong. The Mills is a revitalization project from Nan Fung Group scheduled for completion and actually completed in 2018. A destination consisting of a business incubator, experiential retail, and a non-profit cultural institution may be relatively unfamiliar to Hong Kong people; yet The Mills’ vision and history is a purely Hong Kong story.

    It witnessed the manufacturing heyday in the 1960s, and now it carries the legacy towards a future of applied creativity and innovation. Visitors can explore the continuity of an authentic Hong Kong story, where themes of textile and industry are woven into experiences of innovation, culture, and learning.

    Eoniq successfully raised funds for launching a project a few years ago on the Indiegogo crowdfunding network, which is for customers to make their own personalized unique watches at The Mills. Through engaging in different workshops such as designing automatic tourbillon, printing dial and burning blue steel pointer, customers may experience the watchmaking process.

    In recent years, Swiss watchmaking brands have opened shops all over Hong Kong, however, the Hong Kong local watch industry has also had a glorious history during the 1950 – 1980.

    Although local watchmaking has already faded out, Li Junguo (Quinn), one of Eoniq’s founders, decided to set up his own brand with two partners in 2014.

    “I started building up the brand after I left my work at McKinsey since 2011. It is because I am interested in watchmaking, so I find some fine caliber factory online, and  contact the French freelancer to help me ordering from France as the people from Swiss watch factory usually only speak in French,” he said.

    After buying the caliber from the factory, the brand will assemble the watch according to the custom design of the guests.

    In fact, Eoniq had opened stores in Sheung Wan and Tsim Sha Tsui K11 before, but the shop could hardly afford a monthly rental fee of 1 million HKD in Tsim Sha Tsui.

    In terms of online sales, Eoniq’s customer profile is diversified and located in different regions, namely, Taiwan, Malaysia, Australia, the United States, and Europe.

    “The Mills was interested in Eoniq, knowing that we were assembling the watchmaking on our own, and asked if we could make the watchmaking process transparent so that the visitors could see the process of watchmaking. Thus, we have been given a space on the ground floor at The Mills, which became our current flagship store.”

    For the Automatic Tourbillon design workshop, customers can engrave their name, special phrase, signature or pattern on the watch. With the assistance of a watchmaker, guests can assemble the watch by themselves.

    Guests can also add personal elements to the dial, such as handwritten words or patterns, and there is a traditional printing machine to allow customers experiencing the traditional printing method on the surface of the watches.

    “Our brand is getting bigger, so I hired more masters in watches, including a watchmaker who had previously worked in Omega. In addition to allowing our guests to design their own watches, we want to let more people understand the value of watchmaking.”

  • Patek Philippe may come up for sale

    Patek Philippe may come up for sale

    Patek Philippe, the closely held maker of $10,000-plus Calatrava watches, may be coming up for sale, according to analysts at Berenberg who cited industry talk. The 180-year-old Swiss watchmaker could fetch 7 billion to 9 billion euros ($8 billion to $10 billion), analysts led by Zuzanna Pusz wrote in a note. Patek Philippe has been owned by the Stern family for almost a century, and Thierry Stern became the company’s chairman in 2009.

    A Patek spokeswoman declined to comment except to say deal speculation tends to occur during the annual watch fairs in Switzerland, including last week’s Geneva show. A sale of Patek Philippe would upend the watch industry and could lead to a bidding war, as it is one of the last prize assets that hasn’t fallen into the hands of a luxury conglomerate. Swatch Group AG, which has bought up brands including Omega, and Richemont, which owns Cartier, make more than half of Swiss watches.

    Patek Philippe has sales of 1.5 billion francs, according to Berenberg estimates. On its website, the company says its “intention is to independently pursue the path that led to its success.”

    “We understand that one of the largest conglomerates in the sector would likely be interested in the asset given its currently relatively low exposure to the watch category,” the analysts wrote. Pusz was not immediately available to comment further.

    Two years ago, family-owned Breitling was sold to private-equity owners CVC Capital Partners for more than 800 million euros.

    In 2014, Stern told Swiss newspaper Le Temps that the company may eventually need to leave Geneva or put itself up for sale if its tax burden was not reduced. Months later, the company announced a 450 million-franc ($451 million) investment plan in the canton.

    Stern’s wife, Sandrine, works in design at Patek Philippe. Their children are in their teens, and Patek’s chairman has said he wouldn’t push them into the business if they did not want to join.

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  • Why top watch marques no longer need Baselworld, SIHH?

    Why top watch marques no longer need Baselworld, SIHH?

    Dr Bernard Cheong has what he calls a “migration box” – a travel case that holds up to eight timepieces. “I like to say that these are the watches I will take with me if I have to relocate,” says the jovial 61-year-old, one of the world’s most prolific watch collectors. One of his most prized pieces is a S$3.3 million (US$2.4 million) Greubel Forsey Invention Piece 1, numbered 00 in an 11-piece series. Its serial number indicates that it is the watchmaker’s personal prototype. It would not even have been sold, if not for Cheong’s clout. He believes the watch can eventually command up to S$5 million.

    In 2011, he made history when he became the first ambassador for the Geneva-based Fondation de la Haute Horlogerie who was not from the watch industry. He helped formulate the transparent jury system, and an audited and numbered voting system, for the Grand Prix d’Horlogerie de Genève in 2002, a high-end watchmaking contest, before introducing it to Asia.

    His expertise is drawn from decades of experience of watch buying and selling and forging close relationships with watchmakers and retailers. This has also put him in the unique position of being an industry observer with unfiltered, and sometimes contrary, insights.

    For instance, he does not mince words when talking about the recent issues surrounding the industry’s key watch fairs, Baselworld and SIHH. The two fairs recently announced they would be synchronizing their calendars to run back to back, following a fall in the number of Baselworld exhibitors.

    “It is a reality of the industry. The exhibitors do not need to be there any more – why pay so much to exhibit like this?” he says. Cheong notes that watchmakers today can easily bypass industry fairs by offering information about their latest creations directly to consumers via the internet.

    Protecting his beloved industry is something Cheong takes seriously. In China, the recent crackdown on conspicuous consumption has led to a drop in sales and to brands like Richemont buying back unsold stock. “It is smart for the companies to buy back their precious pieces. When times are hard, people will sell watches at any price to put food on the table,” he says. This could lead to a massive undercutting in prices, he adds.

    “They did the right thing to retain control of prices.”

  • Roger Dubuis appointed new CEO

    Roger Dubuis appointed new CEO

    Effective December 1, Nicola Andreatta will be the new Chief Executive Officer of Manufacture Roger Dubuis. Nicola comes with 20 years of experience in the management of luxury and watch industries. In 2013, Nicola was appointed Vice President and General Manager of the Swiss entities of Tiffany & Co.

    Prior to that, Nicola founded N.O.A. Watch Company in Ticino, Switzerland, which he developed during more than 10 years. And before founding his own company as an entrepreneur, Nicola held various roles in Asia in the watch and luxury industries, as Managing Director, COO and CFO, with the companies, AC Services Ltd, Harwood Investments Ltd and Art Concord Ltd, where he has started his career in 1998.

  • Oriental Watch sales slide, but profit rises

    Oriental Watch sales slide, but profit rises

    Oriental Watch Holdings sold fewer watches in the six months to September, but at a higher margin, boosting profit by 39 per cent. Group turnover decreased by 21.7 per cent to HK$1.181 billion compared with $1.508 billion during the same period last year.

    Gross profit increased by 13.4 per cent to $288 million while gross profit margin increased to 24.4 per cent. Oriental Watch says rent negotiations contributed to lower overheads, helping profit attributable to shareholders rise 39.1 per cent to $64 million.

    As at September 30, the group operated 62 retail stores in Greater China: 11 in Hong Kong, one in Macau, three in Taiwan and 47 in Mainland China.

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  • Tudor Watch starts selling in Japan

    Tudor Watch starts selling in Japan

    Swiss watchmaker Tudor Watch has launched in Japan with a mix of permanent outlets and pop-up stores. The brand started trading on Wednesday in Tokyo and Osaka, and is poised to set up distribution in Nagoya and Sapporo via big-name local retail partners. It is currently riding a wave of popularity in the US and UK, where it has recently relaunched.

    Director of Montres Tudor S.A. Eric Pirson said: “The partners that Tudor selected for this launch are among the most high-profile and prestigious watch retailers in the country. They are offering Tudor a strong presence in their most prominent location. With this presence in the Japanese market, alongside our key openings in the US in 2013, the UK in 2014 and the Korean domestic market earlier this year, Tudor is now truly a global brand that is represented in close to 100 countries worldwide.”

    The launch is well-timed for Tudor’s Rugby World Cup sponsorship in Japan next year, which will serve to raise the brand’s profile in the burgeoning watch market.

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  • WatchTime New York 2018 Wraps Up After Another Record Year

    WatchTime New York 2018 Wraps Up After Another Record Year

    WatchTime New York, America’s largest public watch event dedicated solely to collectors and enthusiasts, wrapped up its fourth year in Manhattan at Gotham Hall today. The two-day event began with a sold-out VIP cocktail party on Friday, October 26, followed by a full day of exciting panels, seminars, tours, and events on Saturday, October 27. Over the course of the two-day show, over 1,400 attendees came to see the latest watches from 35 internationally renowned watch brands: the largest number of exhibitors and the highest number of registered attendees the WatchTime New York Show has seen to date.

    WatchTime Magazine presented the annual event for the fourth consecutive year with returning partner, media platform WatchAnish. Additional supporting partners included SWISS Airlines, Wempe, and Four Roses bourbon, along with The Wall Street Journal, Robb Report, Gear Patrol, Watchonista, The Horological Society of New York, and the RedBar Group. WatchTime New York 2018’s guests included notable international watch collectors, timepiece enthusiasts, and social media influencers, with an appearance during the VIP cocktail event on Friday, October 26, by Number-1 ranked amateur boxer, Brian Ceballo.

    Over four years, the event’s runaway success has exceeded all expectations, a phenomenon reflecting the changing landscape of the watch industry’s annual event calendar and the rising importance of the United States watch market. The WatchTime New York show has become both a direct-to-consumer experience and hub for the industry. This direct-to-consumer event format is uniquely tailored to the U.S. market: a formula that is as much the New York Fashion Week of watches as it is an enthusiast meet-up, trunk show exhibition, and educational forum.

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  • This Year’s Finest Watch Creations in Singapore

    This Year’s Finest Watch Creations in Singapore

    Malmaison boutique by The Hour Glass in the heart of Orchard Road hosts the exceptional exhibition featuring the 72 pre-selected watches. After Venice and Hong Kong, the 72 watches pre-selected by the jury of the 18th Grand Prix d’Horlogerie de Genève (GPHG) are being exhibited from October 17th to 21st in Singapore by renowned retailer The Hour Glass, within the splendid setting of its Malmaison boutique on Orchard Road.

    On show for five days within this stunning environment imbued with art and culture, the exhibition open to the public welcomes visitors eager to admire the year’s finest watch creations, competing to win the prestigious “Aiguille d’Or” Grand Prix or one of the 16 awards to be handed out in Geneva on November 9th.

    “Our organizational mission to advance watch culture necessitates us to devote resources to deepen our engagement with the watch collecting community both in Singapore and in the region,” Michael Tay, Group Managing Director of Singapore’s leading watch retailer and member of the jury of the GPHG 2018, said.

    Rare Opportunity

    The principal partner of the GPHG, LGT Private Banking, is also taking part in the event by choosing to offer its clients exclusive initiation sessions into the technical and artistic finesse of the timepieces on show, in the company of watchmaking experts.

    A rare opportunity for these end customers to admire within a single location the diversity of today’s watchmaking creativity expressed through models by more than 40 different brands.

    Annual Salute

    Created in 2001 and overseen since 2011 by a foundation recognised as a public interest organisation, the GPHG is intended as an annual salute to the excellence of the contemporary watchmaking art.

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  • DFS launches 10th anniversary edition of Masters of Time

    DFS launches 10th anniversary edition of Masters of Time

    DFS Group (DFS), the world’s leading luxury travel retailer, is launching the tenth edition of its world-leading Masters of Time exhibition this December, with a special anniversary collection that highlights craftsmanship, design and innovation. This year’s exhibition, titled “Masters of Time X”, will be unveiled during a two-day gala weekend at T Galleria by DFS, Macau, Shoppes at Four Seasons, featuring the finest watches and jewelry from some of the world’s most renowned brands including several pieces created especially in celebration of the event.

    Masters of Time is recognized as the world’s premier retail exhibition of luxury timepieces and jewelry, and is a signature event in DFS’ Masters Series, which showcases DFS’ leadership and innovation in curating and creating exceptional experiences across its five pillars of luxury: Wines and Spirits, Beauty and Fragrances, Watches and Jewelry, Fashion and Accessories, and Food and Gifts. Created by DFS in 2008 to bring the very best brands in the world of watchmaking, and their ambassadors, together with enthusiasts and collectors alike, the event is traditionally hosted each year in the exciting shopping enclave of Macau.

    The anniversary Masters of Time X collection represents the most exclusive selection of watches and jewelry that DFS has ever presented to its customers, with each piece chosen by its expert merchant teams after more than a year of meticulous searching. Masters of Time X showcases the height of craftsmanship as well as the best of design and innovation for both men and women, featuring over 450 exceptional, rare watches and exclusive jewelry masterpieces from 30 world-famous brands including Bulgari, Franck Muller, Hublot, IWC, Jaquet Droz, Piaget, Roger Dubuis, Tag Heuer, Ulysse Nardin and Zenith. This year, in commemoration of the milestone tenth edition, several pieces have been created especially for DFS and Masters of Time.

    A curated selection of fine jewelry will also be featured as part of the Masters of Time X collection. Highlights include Bulgari’s “Diva’s Dream” set, Tiffany “Paper Flowers” necklace, Piaget’s “Sunny Side of Life Golden Spirit” cuff bracelet, Boucheron’s “Plume de Paon & Hopi” set and Tasaki’s “Ritz Paris Par Tasaki ‘Elégance’” necklace.

    “As we enter our tenth year of DFS’ Masters of Time, the desires of our customers have never been more central to our carefully curated collection. We have worked with some of the most famous brands in the world to create and select masterpieces to captivate experienced collectors and first-time buyers alike,” said Matthew Green, DFS Group Senior Vice President, Watches and Jewelry. “This is a collection worthy of this milestone anniversary, and we are delighted to welcome new and existing customers to discover something truly unforgettable at Masters of Time X.”

    The Masters of Time X collection will be unveiled during a two-day gala weekend at T Galleria by DFS, Macau, Shoppes at Four Seasons from December 7-9. The collection will be available for viewing and purchase in Macau from December 7, 2018 until end-February 2019.

    In commemoration of Masters of Time’s tenth anniversary, new locations have been added to the event’s agenda to reach DFS customers outside of Macau. In September, Masters of Time X was pre-launched to European customers at DFS’ flagship store in Venice, T Fondaco dei Tedeschi, followed by immersive dinners in Chengdu and Shanghai in October, all featuring a selection of bespoke and rare watch and jewelry pieces. In 2019, the Masters of Time X collection will travel to a selection of DFS T Galleria stores around the world.

  • Hong Kong luxury watch imports reached its peak

    Hong Kong luxury watch imports reached its peak

    Hong Kong luxury watch imports posted their highest monthly increase for more than five years in January.

    According to the Federation of the Swiss Watch Industry, exports to Hong Kong rose by 21.3 per cent in January, leading a broader Asian rebound which saw China overtake Japan into second place as a destination with 44.3 per cent growth. Exports to the US fell 1.9 per cent, dropping that market into third. Japan was also strong, up 12.9 per cent.

    January’s improvement followed the dynamic performance of previous months and a favourable base effect, the federation reported.

    Swiss watch exports for the month were worth CHF1.6 billion (US$1.7 billion), equivalent to 12.6 per cent growth.

    The value of all the main groups of materials increased. Steel and bimetal watches made the biggest contribution. Total volumes were 2.5 per cent higher, boosted by timepieces in steel and the other metals category.

    Against the trend, the ‘other materials’ category reported another substantial fall.

    After declining for more than two years, watches costing less than CHF200 (export price) continued to lose ground last month. All the other segments had sustained growth, especially in the CHF500 to CHF3000 price range which improved by about 20 per cent.

    Many markets saw strong growth for the month.

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  • A bonfire of the Swiss watches

    A bonfire of the Swiss watches

    Ever since the Chinese government cracked down on “gift giving” as part of its anti-corruption campaign, Swiss watch exports have taking a beating.

    Here’s the trend, courtesy of a UBS European luxury note out Wednesday:

    As the analysts note, that slump follows a more than 100 per cent rise in the value of Swiss watch exports over 2010 and 2011.

    Ground zero for the demand destruction, meanwhile, is Hong Kong. And it’s there that UBS got some insight on the scale of the downturn from three major retailers:

    We recently met three Hong Kong/ China watch retailers: Hengdeli, Oriental and Emperor Watch & Jewellery. All three companies commented that current trading remains tough, and there is not expected to be any significant recovery this year. Destocking continues as retailers reduce replenishment rates on weaker brands and adjust inventory price mix. More store closures are also ahead with the only silver lining that there appears to be a little more room for rent reductions in Hong Kong of ~10%-40%.

    Recent company commentary has continued to be weak: Swatch reported H1 results on 21st July. Organic sales declined -12.5%, with multi-brand retailers cautious to re-order or cancelling orders. CEO Hayek commented that own retail was better than wholesale and retail in Hong Kong has potentially bottomed out with sales between +10% and -10% depending on the stores. Local Hong Kong retailers, however, do not see the same trends. These results again confirm the difficult market conditions, and follow Richemont reporting April sales -15%.

    Unsurprisingly, for a market where the perception of scarcity underpins all value, the likes of Richemont have even taken to buying back inventory. According to UBS, the new Cartier CEO has specifically looked to clean out high end inventory from the Hong Kong market. This, we’d argue, is quite something. (Or at the very least a new asset purchase idea for QE?) From UBS:

    We estimate that Cartier watches declined -25% in H2 to March 2016 (~€240m) decelerating from closer to a -10% decline in H1. How much of this was “negative sales” due to the buy in is unclear. A rebasing of stock levels in the channel remains key for a medium term reacceleration. Stock levels have been high in the channel in the industry notably in Greater China.

    Hong Kong retail sales figures for watches, jewellery and clocks, meanwhile, registered a 26 per cent year-on-year decline in July following a 20 per cent decline in June:

    A comparable trend can also be seen in the diminishing number of visitor arrivals to Hong Kong from the Chinese mainland:

    The situation seems to be desperate enough for some Chinese luxury retailers to be breaking lease agreements and closing up shops, says UBS. On the up side, however, mainland sales seem more robust of late than Hong Kong, with Cartier watches seeing growth in the last quarter. Nevertheless, since luxury spending in mainland China is a small portion of the total of Chinese sales (about 25-30 per cent), the improved sales picture there is not necessarily offsetting the slowdown in other areas.

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  • Hour Glass Q1 net profit falls amid tough retail environment, slower economy

    Hour Glass Q1 net profit falls amid tough retail environment, slower economy

    The Hour Glass’ first-quarter net profit tumbled 22 per cent year on year to S$8.19 million.

    For the three months ended June 30, total revenue and other income fell 7 per cent to S$149.43 million from the previous year. The decline in revenue reflected the economic slowdown and tougher regional competition, it said.

    Q1 earnings per share slid to 1.16 Singapore cents from 1.49 Singapore cents in the preceding year.

    For the quarter, gross margin edged up to 22.9 per cent from 22.8 per cent a year ago.

    Meanwhile, rental costs were higher due to the expanded retail network.

    The Hour Glass said: “The continuing global economic uncertainty is expected to affect consumer sentiment and the demand for watches and luxury goods. Barring any unforeseen circumstances, the group expects to remain profitable for the financial year.”