Swiss Watch Industry Quasi-Paralysis During Coronavirus Pandemic Some Manufacturers Could Close Down

roadwarrior

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“The strong will survive, the weak will get into real trouble,” Guadalupe said. “You should be able to last at least 18 months if you have to.”

Ricardo Guadalupe, CEO of Hublot. EPA-EFE/GEORGIOS KEFALAS
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The Swiss watch industry is facing the worst crisis in its history, with the coronavirus pandemic expected to reduce sales by up to 30% this year, Ricardo Guadalupe, the head of LVMH Moet Hennessy Louis Vuitton brand Hublot said.

“Over the year the industry will record a decline of 20 to 30%,” Guadalupe told German newspaper Handelsblatt in an interview published on Thursday.

“Consumption has been brought to a complete standstill. It is not yet clear when and what may be reopened. And then there will be the question of how quickly people’s confidence will return,” he added.

Some manufacturers could close down, he added, with cash flow the biggest problem faced by companies.

“The strong will survive, the weak will get into real trouble,” Guadalupe said. “You should be able to last at least 18 months if you have to.”

His own brand was still suffering with 80% of its retail network “dead” in the first weeks of the pandemic. “You can apply that to our sales,” Guadalupe said.

Chinese customers were becoming more important, Guadalupe added, with recent Hublot sales up by 30% in mainland China.

But this did not compensate for the reduction in purchases by traveling Chinese customers who are no longer going to Europe and the United States, he said.

https://corporatedispatch.com/hublot...t-ever-crisis/

 
" the strong will survive, the weak will get into real trouble " i.e. horo darwinism...remember japanese quartz calamity ? well Samuel Clemens nomme de plume Mark Twain said " history doesn't repeat; it rhymes . "

some say the virus merely accelerated trends that were already in place... that sounds right to me..

KARNAC sees a plethora of tool bargains as forced liquidations compete on price to navigate a soggy bottom caused by an unprecedented dual shock to supply and demand in the global economy..

CHINA has been hit to a much lesser degree relative to percentage contraction to GDP ( china economy still growing ) and number of virus deaths and relative cost to GDP to fight the virus-

IMHO china tool production will continue very strong and the yuan will continue to support very low prices relative to the US DOLLAR which for the immediate future will continue to maintain it's place as the premier global fiat currency ( fiat = paper money backed only by faith in the issuer rather than gold & silver )

PLAGUES are as old as homo erectus walkin' on 2 legs... but 3 generations elapsing since SPANISH FLU has caused a kind of collective amnesia... for any wit looking for a refresher course on plagues see the 19 part series on amazon BLACK DEATH

The UNITED STATES has resorted to MMT MODERN MONETARY THEORY to paper it's way out of the pandemic-

" MMT " OR UNLIMITED MONEY PRINTING has been difficult to manage throughout history and mostly used after ruinous wars ( think Napoleon ) ...most times leading to hyper-inflation and regime change...

Well this is a viral " black swan " ( black swan = unforeseen catastrophic event ) that will accelerate changes already in place... rather than looking back teary eyed about the world that was...best to look clear-eyed forward to adapt to our brave new world .

As for the purpose of wit to support tool safaris, it's " happy hunting " for the immediate future as supply pours forth and prices fall to gin up demand. Wits you're gonna need a full bandolier.
 
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^^^^^Looks like Scotty nailed this one "Dead Center"!:yes:^^^^^
 
Mr. B's unique "Scotty Speak" truisms, so bargains galore and will see if
the Swiss will resort to their own type of a "fire sale!?
 
Mr. B's unique "Scotty Speak" truisms, so bargains galore and will see if
the Swiss will resort to their own type of a "fire sale!?


i think GREGG ...supply already exceeded demand...business in contraction ...many years... only the strongest swiss trademarks doing well; even the strongest swiss trademarks considering ending brick & mortar and going to on-line model...asian production relentlessly increasing...


but take KARNAKS predictions with a grain of salt... running out of tin-foil for my space signal hat... good hunting GREGG... may your box over-flow
 
i think GREGG ...supply already exceeded demand...business in contraction ...many years... only the strongest swiss trademarks doing well; even the strongest swiss trademarks considering ending brick & mortar and going to on-line model...asian production relentlessly increasing...


but take KARNAKS predictions with a grain of salt... running out of tin-foil for my space signal hat... good hunting GREGG... may your box over-flow
You are correct in that production has exceeded capacity many moon phases
ago. We will all see how this plays out! You may find some deals Mr. B that even
you can't ignore, happy buying. Stay healthy, please.
 
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