The biggest issue holding back growth was the scramble for the complicated movements that give the “Swiss-made” watch its prestige, many said. While in Europe, sales from Asian tourists continue to offset a more sombre buying environment in the region’s debt-laden countries, the United States was expected to provide the best growth in 2012. Swatch Group and Tag Heuer both reported sales growth of above 10 percent in the first two months of 2012 and watchmakers at the fair said they expected China to continue to grow, just not at the spectacular rates of last year. “They heard the ‘no’ a few times, but they will be back,” he said, explaining how the company had received plenty of offers after previous Chief Executive Rolf Schnyder died last year.Īfter a cautious start to the year on fears of a slowdown in China, the mood at the fair, which brings together 1,815 exhibitors and over 100,000 visitors, was overwhelmingly upbeat with watchmakers from Edox to Breguet saying orders were good. Hoffmann firmly denied, however, that the high-end watchmaker would be among those companies being taken over, and said it wished to stay independent. It only makes sense if you are already their biggest customer,” chief executive Patrik Hoffmann told Reuters. “With our size we can’t take over a dial or case factory. Independent Ulysse Nardin, which produced 25,500 watches in 2011 and expects that to rise by 10 percent this year, says now that it has invested in its own movements, its biggest problem is with the cases, dials and hands. Chairwoman Nayla Hayek said it would instead use its cash to ramp up production.
Swatch Group, whose founder saved the Swiss watch industry from the threat of cheaper Asian watches in the 1980s by bringing out the inexpensive Swatch watch, ruled out adding any more brands to its stable.