Sales have been hit hard by a strong Hong Kong dollar and by China?s crackdown on gifting by party officials
A display of watches manufactured by Audemars Piguet at a store in Hong Kong?s Causeway Bay district. Photo: Bloomberg News
Hong Kong has lost its title as the world?s largest luxury-watch market to the U.S., the latest casualty in a nearly yearlong decline in global Swiss-watch exports as consumers spurn expensive timepieces.
In Hong Kong, Swiss watch exports plunged nearly 33% in July, compared with a 14% decline globally from a year earlier. The U.S. saw a 14.7% drop, with total Swiss watch exports of 178.5 million Swiss francs (US$185 million).
Hong Kong fell to under 175 million Swiss francs in July, down from nearly 260 million Swiss francs for the month last year, according to statistics released Wednesday by the Federation of the Swiss Watch Industry. ?Wealthy Chinese no longer want luxury watches,? said Shaun Rein, the founder of China Market Research Group, which consults with high-end brands. ?The new luxury is going on safari in Botswana and skydiving in New Zealand. It?s no longer about wearing a $5,000 or $15,000 watch.?
Hong Kong has long been the top market for luxury watches, but sales here have been hit hard by the strong Hong Kong dollar and by the Chinese government?s crackdown on gifting by party officials as part of its anticorruption campaign.
To stimulate sales and appease dealers, makers of luxury watches including Cartier and Tag Heuer have ...