Mainland China is one of the main engines of growth for the luxury goods industry, particularly the Swiss watchmaking industry such as Vacheron Constantin Replica Watches. Mainland China is also the third largest export market for Swiss watches and clocks. So how much attention should Swiss luxury watchmakers pay?
For years, mainland China has been a bellwether for the luxury industry. Vacheron Constantin Replica Watches industry executives are concerned after sales were hit by anti-monopoly measures and higher import tariffs. In the past few months, mainland China has become the third largest destination for Swiss watch exports. Indeed, if growth continues at its current rate of around 30 per cent, mainland China will overtake the US in the medium term. Mainland China will then be second only to Hong Kong, the largest export market for Swiss watches.
What is less well known is the role of mainland China as a watchmaker. According to 2017 statistics released by the Federation of the Swiss Watch Industry, about 80 percent of the world’s wristwatch production comes from mainland China, with $5 billion in exports. That put mainland China in third place behind Switzerland ($20.1 BN) and Hong Kong ($8.4 BN) on the list of major exporters. However, according to the Hong Kong Trade Development Council, virtually all of Replica Vacheron Constantin Watches exports are re exported, with 56% of these coming from mainland China. If we take into account the mid-to-low-end market dominated by Chinese brands like Rossini, Ibex, Topwatch and Feiyada, China is arguably the world’s second-largest watchmaker.
From 1950s to 1960s, Replica Vacheron Constantin Watches making industry began to take shape in mainland China, mainly through technology transfers with the Soviet Union and Switzerland. In 1979, Deng Xiaoping’s economic policies allowed direct investment in China and established a free trade area in Guangdong Province, where the local watchmaking industry grew rapidly. Hong kong-based companies are taking advantage of a labour market that is fast becoming the workshop of the world. Not to be outdone, Western companies such as Fossil (to name just one) have been making watches in China since 1984. In terms of revenues alone — more than sfr2bn a year — Fossil has become the world’s fourth-largest watch brand, according to Bank Vontobel. The Swiss daily Neue Z rcher Zeitung said the company currently operates with about 40 Chinese suppliers through its Hong Kong based Fossil Far East Ltd. .
Still need to improve
The rapid expansion of mainland China’s Replica Vacheron Constantin watchmaking industry over the past few decades owes much to the neighbouring SAR, but the role of Japanese companies should not be ignored. Starting at 1960s, Japanese companies also took advantage of China’s low wage labor, which led to the rise of companies like Seiko and West Rail City. In 1995, about 18 per cent of Japan’s watches were produced in mainland China; that figure has now risen to nearly 50 per cent. In short, almost half of all “Japan” watches are produced in mainland China — Although strategic components are still produced in Japan. With about 40 per cent of mainland Chinese watch exports going to Japanese brands, and with production devoted to Chinese brands such as Hong Kong, local brands don’t really get enough attention.
Of course, mainland China also has successful watch-making brands: Beijing watches, Peacock Watches and Tianjin Seagull watches all come to mind. Then there are the growing number of joint ventures, represented by brands such as Vacheron Constantin Replica Watches . As Hong Kong Trade Development Council has observed, the Tianjin Seagull Watch has mastered the complex functional technologies of the tourmaline, three questions and the perpetual calendar, and is capable of mass production. While many mainland Chinese watch brands are willing to compete with their Swiss counterparts, there is a significant gap between the two on the whole. The average export price of Vacheron Constantin Replica Watches and clocks in mainland China rose more than fourfold between 2000 and 2016, but was still less than $5, compared with $840 in Switzerland, according to data from the Federation of the Swiss Watch Industry in 2018. At the moment, the mainland market for the watchmaking industry is still the first significance of a large consumer group.