Basel : Amig gloom, One niche is doing Well !

Published on by The Inquirer

As Twitter-reporters are feedind us since the last two days on how amazingly crazy watches were designed, for my part i've been wondering if luxury analysts were right  - or laying ground another public relations scheme -  undoubtely saying that luxury goods would be seen as a  high end refuge value in a cut -back -tightening-belt market.As an investement or something which could go troughout family generations, one might say they got it right.Then another question falls in mind, up to how many watches one could buy to be profitable ? 

The first two months  of 2009 were a catastrophe for the swiss watchmaking industry, in February, Swiss watch exports fell 22.4 percent.Luxury brands such as Rolex, Girard-Perregaux, Corum, Raymond Weil, Roger Dubuis, HGT, and Cartier's Swiss plants announced plans to cut work hours or reduce jobs in recent weeks.About 1,000 jobs were lost in the watchmaking belt in the northwestern Jura hills, the Swiss newspaper Le Temps estimated.

Though dapers executives floating around  tremendously luxurious stands with happy faces alike  Lehman Brothers's was the best in the banking business, Jacques Duchene, who heads Baselworld's exhibitors committee, observed that  the main problem is on the one hand due to a lack of orders and on the other hand to a lack of assets, combined with a lack of visibility in some cases.

Robert Buchbauer, the chief executive of Austrian crystal-maker group Swarovski, described the downturn experienced by the group's components business as "quite substantial."

ho's doing well ?

Armand Nicolet's CEO, in Tramelan, explained that retailers had no stocks of its watches. After six difficult months without cashflow, they are still  buying because they need his "niche products",  largely based on earlier movements inherited from the takeover of the company in 90 years and brought up to date."I am almost ashamed to say, but for us, Baselworld is better this year than 2008," says Rolando Braga. An event even which represents only 15 to 20% of  this year direct sales ,"95% of our customers derive from previous editions."

why ?

In addition to its worldwide distributed  watches, Rolando Braga broke before the crisis occured  its dependence on  U.S market., which accounted for up to 90% of sales.

Published on BUSINESS

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