China's fear of Swiss watches

To a rich neighborhood exports of Swiss watches has declined to China in a year. This is also because China's new government castigates the luxury of political cadres.

Until recently, Chinese object of desire: the moment but are tourists from China in the Swiss watch purchase in shops reserved.

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Huge range of watches and jewelery the most popular manufacturers

On the phone the Kirchhofer branch on the Jungfraujoch, a staff report in Chinese. The linguistic charm offensive of Interlaken watch and jewelry business now makes even more sense, because the demand of Chinese tourists to Swiss watches has recently subsided significantly. Business with customers from China remained stable only says the Japanese managers, since more and more Chinese Tours come to the Jungfraujoch.



China's anti-luxury campaign

Dealers call the phenomenon "many legs, little notes." Managing Director Peter von Gunten experienced in the City of Bern branch of the jewelery business Bucherer. Chinese are "important customers" for their advice he has hired Chinese speaking staff specifically for him. Even at Bucherer watches in Bern purchases of Chinese are slightly down.

Until recently bought Chinese like a Swiss clock in the country of manufacture. Because they could be sure then not to acquire fake. And because they were able to circumvent import duties and luxury at home in China. Now their desire is to Swiss Chronometer but spoiled by a political campaign in the home, which also Peter von Gunten in his Bucherer store hears: The new President Xi Jinping is going against the wastefulness of political cadres.

Export slump by a quarter

The negative trend obey, watch exports to China. In the first four months of this year, the value of exports of Swiss watches to Hong Kong over the same period from 1.36 to 1.24 billion francs, an increase of 8.5 percent, declined. Those of mainland China even by a whopping 24.7 percent from 574 to 432 million francs. The latest figures show the Federation of Swiss Watch Industry (FH).

This decline is therefore significant because, according to FH-going President Jean-Daniel Pasche not less than a quarter of total Swiss watch exports in the amount of CHF 6.5 billion (2012) to Hong Kong and China. Together with the U.S., it is the best-selling export markets, the Swiss watch industry. "Chinese people are our most important customers," says Pasche.

The watches and instruments was, according to the State Secretariat for Economic Affairs SECO 2012, the second largest export sector with a share of almost 20 per cent of world merchandise exports Swiss. He was topped only by the chemicals (35.9 percent). Increased export of watches, which is feeling the whole Swiss economy.

After changes of government in the economy there is "an uncertainty effect", soothes Jean-Daniel Pasche of the watch industry federation FH. He makes no worries. The still growing middle class of China watches sales office for a continuing potential dar. He speaks of a "temporary consolidation" after the Swiss watch exports to China have exploded in the last ten years of 30 million Swiss francs to 1.6 billion downright.

Yang's official luxury watches

Kurt Haerri recognize "a bunch of reasons" for the lame watches sales. The President of the Chamber of Commerce Switzerland-China and head of marketing and sales at the elevator company Schindler makes an actual key event: the dismissal of senior party functionary Yang Dancai last September in Shaanxi Province. On "Weibo", China's version of Twitter, photos of Yang's wrist were launched with no less than eleven different Swiss luxury watches. The most expensive: a Vacheron Constantin for 30,000 francs. The value of the eleven clocks corresponds to the annual earnings of twelve workers revolted the Weibo community. Yang became the prototype of enriching themselves functionary. A Swiss clock in the luxury segment from 1500 francs - until now a prestige object for party cadres and corporate captains - in China recently could threaten political career, wrote the "Time".

According Haerri to cool the Chinese demand for watches are likely to favor Italian customs authorities. In Chiasso they charge since last summer of tourist arrivals from China a hefty, but legal VAT of 20 percent for purchased watches in Switzerland. Concerned Chinese tour operators could therefore avoid Switzerland, Switzerland Tourism has established a working group. On the suggestion of the customs of Italy and Switzerland are now working a manual that explains the Chinese about how they will get back the VAT when leaving Italy.

Free trade helps little

Despite stagnation but the watch industry may possibly soon welcome tailwind. The newly negotiated free trade agreement with China, whose exact content is not yet known, should eliminate the Chinese Import duties, the more expensive today the Swiss export goods by 9 percent. Kurt Haerri but attenuates this hope. It was leaked that the watches belong to that group that would benefit only a gradual reduction of import duties.