There are markets that in the past have always appeared untouchable by the trend of the economy, indeed often, being perceived as safe havens, they have benefited from the crises. However, the Covid-19 crisis reveals itself as a completely new element, capable of putting into crisis paradigms that were considered acquired.
For example, the Swiss luxury watch sector, i.e. the various Rolex, Audemars Piguet, Vacheron Constantin, which had not experienced serious crises even in times of war, are instead suffering very serious sales falls due to the Covid-19 crisis. These brands saw a 68% drop in exports year on year, after the 81% drop in April. Practically the sector is "almost paralyzed" and there is the risk of incurring a chain of layoffs like they have not seen before.
The drop is much stronger in the sector of watches in non-precious material, compared to those in precious material, a sign that, however, the use of the gold safe haven still has some effect on sales:
Luxury customers, however, prefer precious products to "mixed" ones, which give less certainty on the quantity of precious metal contained.
The different markets also behaved unevenly:
markets such as the North American and Japanese have literally crumbled under the epidemic crisis, but also markets up to yesterday with strong growth, such as the Chinese one, have seen significant cuts. The average of the 6 major markets sees a 53% drop. If there is not a turnaround soon, layoffs will not only begin, but the latest small independent brands will risk disappearing. The end of a myth, which seemed eternal.
The article ALSO THE RICH PEOPLE ARE CRYING: the crisis in the Swiss luxury watch market comes from ScenariEconomici.it .
This is a machine translation of a post published on Scenari Economici at the URL https://scenarieconomici.it/anche-i-ricchi-piangono-la-crisi-del-mercato-degli-orologi-di-lusso-svizzeri/ on Sat, 20 Jun 2020 12:44:14 +0000.