Watch Industry In Confident Mood Despite Japan, Mid East
March 23 2011 - 7:48AM
Dow Jones News
The recent earthquake and tsunami in Japan and upheavals in the
Middle East cast a shadow over the optimistic mood at the start of
the Baselworld trade show for the watches and jewellery sector
Wednesday.
Despite a positive start to the year, the Swiss watch industry
remained cautious about the outlook for the sector, given global
events.
"We have experienced in the months gone by an alternation of
major, unforeseeable upheavals and shocks," said Jacques Duchene,
president of the exhibitors committee, after passing on his
condolences to those affected.
Several countries in Africa and the Middle East are now going
through radical changes, bringing uncertainty to the whole world,
he said.
Although the events appeared to be heading in the right
direction, "our uncertain geo-political situation still makes it
imperative for us to be cautious in our analyses," he added.
But the watch industry nonetheless sounded a fairly upbeat note
at the start of the 39th annual event, which is the world's largest
watch show with almost 2,000 exhibitors including the brands of
Swatch Group (UHR.VX) and LVMH (MC.FR) and privately-held
Rolex.
Swiss watch exports in the first two months of 2011 are 18.1%
ahead of 2010 at CHF2.55 billion, while February was a record month
for the sector.
Francois Thiebaud, chairman of the Swiss committee and President
of Tissot, said: "We have had an even better start than the record
year of 2008.
"We have to be cautious, not rush into jubilation, hoping that
things will develop in our favor," Thiebaud said, adding there had
been good growth in Hong Kong, China, and U.S. so far this year,
while European markets were recovering.
The luxury sector had recovered from the downturn in 2009, with
further growth forecast for 2011.
"The way out of the tunnel materialised faster and more
energetically than the market forecast for us, but let us avoid the
pitfall of being too certain of victory," Duchene told a press
conference in Basel.
Rene Kamm, chief executive of organizers MCH Group said, "The
economic upturn was successfully rung in last year and the slump in
the luxury goods sector is now thing of the past."
Sylvie Ritter, managing director of Baselworld, said, "At the
opening ceremony of last year's show we spoke about a year in which
the industry has been revitalised and there are fewer clouds in
sight.
"The return to full health has been confirmed throughout the
whole of the year just gone by, so let us assume that 2011 is going
to turn out just as positive and that the entire industry will thus
be able to continue to progress."
-By John Revill, Dow Jones Newswires; +41 43 443 8042 ;
john.revill@dowjones.com
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