Fresh numbers this week from Switzerland’s two largest publicly traded watchmaking conglomerates, Richemont and Swatch Group AG, confirmed a brutal, China-led pullback that’s also tarnished luxury fashion brands from Burberry Group Plc to Hugo Boss and Gucci. The double-digit drop in sales seen in the latest results mark a stunning reversal of fortune for an industry that enjoyed an unprecedented sales boom during the pandemic-era. Back then, cash-flush clients, unable to spend on travel and dining out and inspired by flashy social media posts, plowed money into expensive mechanical timepieces.
+ Six things you should know about the watchmaking industry Most of the top watch brands responded to the surge in demand by raising prices, some by double digits. That prompted some consumers to reconsider buying a new watch. Sales of Richemont watch brands, which include Vacheron Constantin, Jaeger-LeCoultre and IWC, fell 13% in the three months through June, driven by a 27% drop in Greater China it said Tuesday.
Swatch, which owns Omega, Blancpain and Breguet in addition to its entry-priced namesake, saw China sales plunge 30% in the first half of the year. Overall sales fell 14% and operating profit dropped an eye-watering 70%. The drop in sales and cuts in production are rippling through the industry in Switzerland.
Watch component suppliers, who scurried to hire staff and buy equipment during the boom, are facing deferred orders from big Swiss brands. Some components makers h.
