This article stated that, "Louis Vuitton and Hermes bags are still amongst the most sought-after luxury products compared with weak demand for watches, a traditionally male-dominated sector.” At the moment, there is definitely no contest when it comes to handbags versus watches, women are keeping those ateliers working hard around the clock, whilst the Swiss watchmakers have plenty of time for a coffee break.
The handbags versus watches argument is also about direct retail stores (handbags, leathers) versus third party (wholesale to retail), where the tap has been turned off or slowed to a trickle. The wholesalers are at the mercy of the retailers. And as watch retailers internationally (Australia is excluded, trade continues well according to our industry sources) have reduced sell throughs, their inventory naturally has grown. So they in turn have pushed back with reduced orders to wholesalers, and the domino effect continues down to the manufacturers. In essence, this all boils down to inventory issues, something that may not be fixed for a long time …
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