Friday, 28 August 2009

The Good Times Roll Once More For Richemont’s Swiss Watchmakers – 28/8/09


We’ve been watching how the sales of timepieces have been travelling and finally we have promising news. Swiss watchmaker IWC, part of Swiss luxury goods group Richemont*, is now performing "astonishingly well" in the U.K. And it is also performing very strongly in China and some of the key Asian regions.

IWC Chief Executive Georges Kern said in a Reuters article, "China and the most important markets Hong Kong and Macau are proving to be robust for us and are developing better than we had feared a few months ago."


Kern also stated, “We remain cautious and don't see any reason for euphoria. But the first signs of at least a stabilisation are there.”


This development is a nice contrast to recent reports that timepieces have been the fly in the ointment for luxury goods conglomerates, dragging down their overall profits due to inventories... We’ve red flagged this issue on the MO Down several times, including on March 11 when we reported: ‘Bulgari Profits Slump As Customers Watch Their Spending’. Click here to read the full report.


*Richemont is controlled by South Africa's Rupert family, and is the world's third-largest luxury goods group behind LVMH and Hermes.


Article by: Melinda O'Rourke

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Melinda O’Rourke is the founder and Director of MO Luxury, a dynamic, Sydney-based management firm specialising in luxury brands and services. Melinda and her associates at MO work with local and international brands across prestige retail, fashion, fine jewellery, timepieces and specialised services. Melinda is well-connected, well-read, and well-versed in the demands of the luxury market and its client base. Her advice is firmly based in objectivity and ultimately, accountability. Melinda offers constructive counsel and both strategic and creative thinking and is able to draw upon a strong network of specialised talent to compliment the MO Luxury team as needed. Melinda enjoys excellent industry relationships and is regularly quoted in the business and fashion media. Read more about MO Luxury, www.moluxury.com.au