China is slowly recovering from the outbreak of the coronavirus pandemic, so business 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 general manager of Swatch Group - has released 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 a few weeks ago he declared himself optimistic, so much so that he didn't want to hear about the crisis in the watch market:
“I see no crisis for the Swiss watch industry, quite the contrary. The newspapers talk about dangers in relation to climate, coronavirus, strong franc, China, isolationist America, the EU and of course smartwatches: but honestly, where do you read about the opportunities that all these things bring? Despite all the prophets of the end of the world, this situation will also improve again ”.
The Swatch Group, like other groups in the sector, was forced to take exceptional measures which involved the closure of some production and retail sites. Production continues with a natural reduction in the working hours of collaborators, but its patron stated that he does not contemplate any layoffs due to the financial strength of the group.
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