China is slowly recovering from the outbreak of the coronavirus pandemic, so trade developments in this important area are also gradually improving for the Swatch watch group, which is currently seeing a general decline in turnover in most of its markets. However, the company expects a rebound effect when the situation returns to normal, driven by what many call "revenge spending“.
During the press conference organized by videoconference, Nick Hayek – the chief executive of Swatch Group – issued a statement that bodes well: " We are starting to see the end of the tunnel in China", hoping to return to normal by the end of April. It should be remembered that in the whole of China alone, including Hong Kong and Taiwan, it collects almost 36% of the conglomerate's turnover.
It should be emphasized that Nick Hayek already a few weeks ago he declared himself optimistic, so much so that he did not want to hear about the crisis of the watch market:
" I don't see a crisis for the Swiss watch industry, on the contrary. In the newspapers there is talk of dangers in relation to climate, coronavirus, strong franc, China, isolationist America, EU and of course smartwatches: but honestly, where do you read about the opportunities that bring all these things? Despite all the prophets of the end of the world, this situation will also improve again".
Swatch Group, like other industry groups, has also been forced to take exceptional measures involved closing some production and retail sites. Production continues with a natural reduction in employees' working hours, but its patron has stated that he does not contemplate any redundancies due to the financial soundness of the group.