China will cut duties on Swiss watches by 60 per cent over the next 10 years as part of its free-trade agreement with Switzerland.
Sales of luxury watches in China have tumbled in recent months as Chinese have bought expensive timepieces in Hong Kong and Europe to save money – and due to the government crackdown on gift giving.
“The retail prices of Swiss watches will decrease slowly under the new policy in China. This will definitely attract more Chinese consumers to buy Swiss watches locally,” said Philippe Charriol, CEO of Swiss watch and jewellery brand Charriol.
The tariff cut will put pressure on watch retailers in Hong Kong, however, it will not be that significant, says Gabriel Au, chairman of the Federation of Hong Kong Watch Trades and Industries.
“Hong Kong’s watch shops have a wider range of options for shoppers and the sales people are more professional. More importantly, the quality of watches sold in Hong Kong have greater guarantees than the ones sold on the mainland.”
Currently, Hong Kong is the world’s largest importer of Swiss watches, accounting for 20 per cent of Swiss watch exports, followed by the US and China, which account for 10 and 7.7 per cent of Swiss watch exports, respectively.
