China’s economic slowdown and the government-led anticorruption drive are puttin

Question

China’s economic slowdown and the government-led anticorruption drive are putting the squeeze on Swiss luxury watch brands. Many of these brands depended on China for growth. According to a report by Deutsche Bank, exports of Swiss watches to China plunged 26 percent in March 2013 compared to 3/2012. One bit of good news is that China is cutting import duties by 60 percent on Swiss watches. On the other hand, Swiss watches are facing competition now from domestic watch brands (e.g., Seagull and Shanghai Watch). Still, the top 10 most wanted watch brands in China, with the exception of Cartier, are still Swiss-based. Given the mounting challenges, what can Swiss luxury watch brands like Rolex and Longines do to build loyalty in China?

Explanation / Answer

here we should remember that customers are not losing their hope about swiss watches, it is because of some economical factors and political pressures the economic downtrend started. of course it definitely impact on the sale of every luxury product, but not only swiss watches. the firm should design their production and promotional strategies and should redesign their promitions in china.

yes, high competition existed in the market, it does not mean that, every producer will be competitor for Rolex or Longines or Rado. it is all about it brand name, the quality of product, the strength of existed customers and how effectively they attract new customers.

as i aready mentioned that every local watch producer may not become competitor to swiss brands. but to face competition, they shuold redesign their promotional strategies. now they must concentrate on the segment, where till now they do not focuse. they can focused on middle income people, by introducing new brands with some what reasonable prices.

the most important thing is that, swiss brands does not lost their loyalty in chinees customers, the sales will reach normal stage in less time.

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