Defying Gravity

In the midst of a challenging business environment, the Salon International de la Haute Horlogerie opened to reveal a watch industry in its innovative prime. Sean Li and Charlene Co chronicle the latest developments

fter a number of years of stellar growth spurred by Asia’s hyperactive market—and particularly the voracious appetite in Mainland China for new timepieces—the watch industry entered 2016 with a less-thanoptimistic forecast. Sales figures have shown a significant downturn in the past few months, particularly in Asia. It’s difficult to single out one particular reason for this phenomenon. One factor is that there is little incentive for Mainland Chinese tourists to continue to come in droves to Hong Kong and Singapore to shop, as brands are being challenged by their global pricing strategies in an economic environment that’s much more turbulent than anything they’ve experienced before. The flow of information is also a factor, for our permanently connected devices give us access to pricing and availability on a global scale within minutes, and comparison-shopping is enabled by a few simple taps on a screen. Luxury buyers are certainly not averse to spending a little less on their coveted timepieces, even if it means travelling, which they’re doing on a regular basis anyway. Demand for luxury watches certainly continues to exist, and it can be seen in other regions, but it’s driven by tourists and travellers rather than by local demand. The search continues for those exclusive and