Industry Insiders: Calm And Rational When Buying Swiss Watches

Swiss industry insiders told reporters that in the past, watches were hand-made and exquisitely crafted, condensing the hard work and ingenuity of watchmakers, more like crafts; today, after industrialized production of watches, they have become ordinary consumer goods. It will also decline as production increases. Therefore, consumers should be more rational and calm when buying Swiss watches. In recent years, more and more Chinese people are keen to buy Swiss watches, but behind the illusion of high-priced watches, they are mixed with the bad mood of display and blind consumption, and the misunderstanding of anticipating the value and value of watch purchase.
     According to the statistics of the Swiss Watch Industry Federation, the mainland of China has now become the third largest export destination of Swiss watches and clocks. In 2011, Swiss exports to the Chinese mainland amounted to 1.636 billion Swiss francs, an increase of 48.7% over the previous year.
    At the same time, more and more Chinese tourists are coming to Switzerland to buy watches. According to data from the Swiss Federal Statistics Office, Chinese tourists were the foreign tourists with the strongest purchasing power in Switzerland in 2011, with a daily average consumption of 350 Swiss francs, while the average daily consumption of European tourists was only between 120 and 240 Swiss francs. Many Chinese tourists told reporters that buying watches is one of the purposes of their visit to Switzerland. In Interlaken, Switzerland, large and small watch shops are crowded with Chinese tourists. The owner of a watch shop told reporters that the local population is only 5,000, but he has 42 Chinese shopping guides. Some watch shops in Geneva are distressed by their small facades and inability to accommodate Chinese tourist groups of dozens of people. Swiss watches are regarded by many Chinese customers as a symbol of success and status, and many Chinese people agree with a very popular saying: Swiss watches can maintain value and increase value. However, the Swiss industry has poured cold water on this statement: most Swiss watches today are large-scale industrialized consumer products, not suitable investment products. Can the watch maintain value and appreciate? Some watches have a brand of a certain era and are indeed collectible. Some brands only produce more than a dozen technically limited watches a year to highlight the company’s image of pursuing superior technology. These watches are usually reserved by buyers early and have a certain collection value. As the saying goes, things are scarce and expensive. But most Swiss watches today do not have such scarcity. According to the reporter’s understanding, a luxury brand watch produced less than 10,000 pieces 20 years ago, such as 60,000 pieces this year; a high-end Swiss high-profile brand in China even produced more than one million pieces. The volume will reach 10 million pieces. Manufacturers are so sprinting in production, no longer rare and precious? How to maintain and increase the value of watches? The industry also reminded that many Swiss watch manufacturers often exaggeratedly claim to be a century-old brand in advertisements, but in fact, there are not many Swiss companies that have continuously produced watches for 100 years.
     The Swiss watch industry has a default saying that the retail price of ordinary watches is equivalent to five times the cost price, that is, watches with a price of 2000 Swiss francs, which cost about 400 Swiss francs; and some higher-priced watches, the cost price is likely to be One-eighth to one-tenth the price. The reporter learned from the industry a few days ago that a limited-edition watch with an output of only 20 pieces sells for 280,000 Swiss francs, but the cost is actually 30,000 Swiss francs. In addition, many famous watches marked ‘Made in Switzerland’, the case, strap and other external parts are ‘Made in China’. The production of an all-steel strap of a well-known watch in Switzerland costs 300 to 400 Swiss francs per piece, while purchasing from China costs only 40 Swiss francs. Some Swiss watch companies import parts from China, which is an open secret in the industry. Swiss industry insiders told reporters that in the past, watches were hand-made and exquisitely crafted, condensing the hard work and ingenuity of watchmakers, more like crafts; today, after industrialized production of watches, they become ordinary consumer goods, and the price will decline with the increase in production . Therefore, consumers should be more rational and calm when buying Swiss watches.