Swiss Watch Brands Mull Future of Hong Kong Show on Downturnby
Annual Watches & Wonders show could move to biennial event
Some brands wish to fully exit exhibition: Richard Mille CEO
The Swiss organizer of an annual Hong Kong watch fair and some of the exhibiting brands are considering holding the event every other year amid declining sales in the industry’s largest market.
The Fondation de la Haute Horlogerie in 2013 started Watches & Wonders, as the exhibition is known, branching out from the two biggest trade shows in Switzerland, the SIHH in Geneva and Baselworld. The group is in talks with exhibitors on the future format of the show, according to Richard Mille, chief executive officer of the namesake independent watchmaker. The event mainly showcases Richemont-owned brands like Montblanc, Cartier and Vacheron Constantin and some independents like Richard Mille.
“Some brands have been fighting to get out, completely out, to stop the Watches & Wonders,” Mille said in an interview at the Geneva watch salon on Tuesday, declining to name the brands. “Some of the brands want to do it every two years, some say every year. It’s a negotiation.” A decision will be made after this week’s show in Geneva, Fabienne Lupo, chairwoman of the foundation, said by e-mail.
Demand for pricey timepieces in Hong Kong has suffered from China’s crackdown on extravagant spending and currency fluctuations that make watches less expensive in other markets. Swiss watch exports to the island city plunged 23 percent in the first 11 months of 2015, and are facing the first annual decline since 2009. The industry is already pulling back, with TAG Heuer shuttering a store there in August.
Mille, who said the main reason for brands reconsidering the show is the time and investment it requires, would prefer the exhibit to go on every year. It usually takes place in late September. Richard Mille’s watches start at about 70,000 Swiss francs ($70,000) and can reach 1.8 million francs.
“The objective of going there was to make contact with clients who maybe couldn’t or wouldn’t go to the boutiques, and we could enlarge our client data base easily,” Mille said. “It’s not cheap, but it’s worthwhile.”
Montblanc Chief Executive Officer Jerome Lambert said, “it’s too early to say where it goes and how it goes and what will be done. Whatever happens, we’ll remain very active in Hong Kong with major exhibitions.”
Hong Kong also plays host to the annual Hong Kong Watch & Clock Fair, which had almost 800 exhibitors last year.