Swatch buyers in China hesitate over higher prices, CEO says

blog image

Swatch buyers in China: Nick Hayek, CEO of Swatch Group, recently discussed the difficulties the Chinese market is currently experiencing in an interview with the Neue Zuercher Zeitung. The market will probably have a rough go of it till the year ends, says Hayek, mostly because consumers are wary of spending more money because of price hikes.

Even though China has a lot of untapped potential, buyers there are being slow to make purchases, according to Hayek. He attributed the increasing price sensitivity he saw to widespread price increases. Until the end of the year, this cautious purchasing behaviour is expected to continue, adding to the difficult situation in China.

The conundrum of market dynamics confronts Swatch Group, which is known for both its mass-market plastic models and its high-end brands like Omega, Tissot, and Longines. In response to questions on the potential delisting of Swatch, Hayek addressed the matter. Her family holds a significant voting interest in the company.

Although Hayek did not deny that privatization could be good for the company’s future growth, he did voice some concerns. His reasons were that the company’s principles are at odds with his worries about amassing large debts. Fiscal restraint, rather than quick profits, should be prioritized, as Hayek argues.

Interviewee Marc Hayek, who is Hayek’s nephew, was also mentioned in passing as a possible leader of the organization. Hayek praised Marc for his commitment, enthusiasm, and congruence with the company’s principles, but he stressed the significance of Marc’s independence in making decisions.

He stressed that Marc alone has the power to decide whether or not to become Swatch Group’s leader, and that neither Hayek nor Nayla would force Marc to do so. Within the company’s leadership structure, this approach highlights a dedication to meritocracy and individual agency.

With the Chinese market being so complex and Swatch Group thinking about its long-term strategy, Hayek’s thoughts on how to balance expansion potential with financial prudence and leadership succession are helpful.

Ethan Sullivan

Ethan's penchant for the pulse of the fashion world extends to covering lifestyle topics, offering readers a seamless blend of the latest style updates and lifestyle trends.

Read more