Swiss watchmakers are facing a new challenge as retailers are cutting prices to sell off excess stock following a drop in demand after the pandemic-era boom. To counter the slowdown, watch manufacturers are planning to limit shipments to stores and prevent retailers from discounting their products, which could undermine the luxury watch brand's image of exclusivity. This move comes as consumers rein in spending and second-hand prices tumble.
Key Takeaways
- Swiss watchmakers facing drop in demand after pandemic-era boom
- CEOs of watch manufacturers planning to limit shipments to counter slowdown
- Consumers reining in spending leading to second-hand prices tumble
- Preventing retailers from becoming awash with inventory to maintain brand exclusivity
- Retailers cutting prices to unload stock poses new challenge for watchmakers
Analysis
The drop in demand for Swiss watches following the pandemic-era boom has led retailers to cut prices and unload excess stock, posing a challenge for watchmakers. To counter the slowdown, watch manufacturers are planning to limit shipments to maintain brand exclusivity. This move could impact the luxury watch brand's image and second-hand prices as consumers rein in spending. In the short term, this strategy might help prevent an oversupply of inventory, but in the long term, it could affect the profitability of watch manufacturers and retailers. This trend may also have implications for the Swiss economy and the global luxury goods market.
Did You Know?
- Swiss watchmakers facing drop in demand after pandemic-era boom
- CEOs of watch manufacturers planning to limit shipments to counter slowdown
- Preventing retailers from becoming awash with inventory to maintain brand exclusivity