Swiss luxury watch sales up
By Li Wenfang (China Daily)Updated: 2006-11-28 16:07 GUANGZHOU: Watch exports from Switzerland to China are expected to grow 10 to 20 per cent in the next five years, said Beat Burgi, counselor of the Embassy of Switzerland in China and managing director of the Swiss Business Hub China.
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"If the economic situation in China remains as it is right now ... the number of Chinese people who can afford this kind of product will grow steadily," he told China Daily yesterday at the opening of the Guangzhou office of the Swiss Business Hub.
Burgi said exports to China skyrocketed 69.9 per cent from 2002 to 2005. Exports to the mainland grew 10.07 per cent year-on-year in the first 10 months of this year.
Since China's accession to the World Trade Organization, "it's easier to sell luxury goods in China. The market has opened up," Burgi said.
Swiss exports to the Chinese mainland earned 311 million Swiss francs (US$257 million) last year. They brought in 1.6 billion Swiss francs (US$1.3 billion) from exports to Hong Kong, many of which were re-exported to the mainland.
China levied a 20 per cent sales tax on luxury watches in April. Burgi said the tax did not have a great impact on sales.
"Somebody who is prepared to pay US$2,000 or US$3,000 or more for a watch does not care if it is 10 per cent more expensive," he said.
Although Swiss watches have a good reputation around the world, they are not immune from Chinese competitors.
"Chinese products are getting better and better and are becoming more competitive with Swiss products," Burgi said.
New or lower-tier Swiss brands have had trouble on the Chinese market, he said.
Meanwhile, imports of watch products and parts from China to Switzerland have also grown, Burgi said.
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