Wednesday, June 24, 2015

Hong Kong Watch Market Review

Hong Kong is the major Export market for Swiss Watches  as  it takes up 13.3%  for May 2015 shipment.

How does it behave in the past 12 months?

We could see downturn in volume of watches less than 200 francs , however other segment recorded steeper declines are those more than 3,000 francs.  China has tightened expenses control for all government officials, especially entertainment and “fake entertainment”!

These scenes are not able to occur again:
“Pack these 6 Daytonas, Do you accept Cash!?”
“Give me all different colour of this Ferragamo!”
“Give me that 50 years Mou Tai of RMB500,000!?”

A sharp decline was seen in these few months, some of the high rental Rolex AD shops would be closed down soon.

Steel watch as the majority of all types which Declined 11.9 percent in May amongst all Gold, Two Tone, others.

Patek has reduced 20% of all his watches in 10 Feb, and staring from 1 July they will increase 7 % across all models:
US, UK (price unchanged)
Canada ( Increase, yet to confirm how many percent)
Switzerland (+7%)
EU (+4%)
HK (+7%)
Japan (+6%)

China Market
Imagine that Mitsukoshi and Izetan has Mandarin PA announcement in Japan!?

All major Luxury watches catalogues is printed in Chinese Patek Philippe Rolex, Audemars Piguet, Vacheron Constantin.

Still we can see some for the China superrich pays HK$5M for a watch, but is uncommon now. They would like to fly to Switzerland shopping there.

Most of the Watch Boutiques  now are inviting local watch collectors to join their event and function. At least they want to get hold of the basic buyers in HK when 80% rich Chinese customers are gone.

Price is key issues as all know that the shopless grey dealer is importing the same watch at less 20 to 30% off whereas we have only limited discount for 5 % to 10% depending on brands model at AD shops.

The recent Patek price adjustment is likely a leverage adjustment to offset the profit loss of last 20% price reduction back in 10 February.

Toyota warranties each new Toyota vehicle sold by Crown Motors Ltd (CML) and registered in Hong Kong for the first 36 months or 100,000 km (whichever comes first).

Rolex will launch a 5 years (60 months) warranty program on your watch purchase!

This is a big game to those other luxury watch as they have to consider the long term support capability including coverage, service skill, handling capacity.

Some of the Service of luxury brand had already been suffering with insufficient local locally in the repair and maintenance. Have you heard of an Overhaul of a Perpetual Calendar take 1 year!?

Next Time when you visit Europe, check the price and may be you can get a good deal.

Or Buy from Trustable Local Dealer for the model you like
Buy low is the policy, it is the time.
HK Snob

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