Swatch Group Is Optimistic About Recovery In The Chinese Market During 2023
Swatch Group has made some comments about how it is positive about the recovery of the Chinese market in the year 2023. This comes at a time when China has recently ditched its strict COVID policy - In addition, tourists have also started coming to China once again, which will also prop up the economy.
Swatch Group is involved in making a lot of high-end watches, such as Longines, Tissot, and Omega. So as far as the sales of new watches are concerned, the group is optimistic about healthy growth in sales from the Chinese markets.
Strong Sales In 2023 Are Expected
As per the group management, the year 2023 will be a year of strong sales across all segments and regions. In addition, they also pointed out how consumption in Macau and Hong Kingdom recovered quickly after the lifting of COVID restrictions.
In addition, China has also lifted travel restrictions that will also improve the sales originating from tourists.
These comments come at a time when there is strong evidence of an improved situation in mainland China. And since China is the 2nd largest market for Swiss watches, it also serves as a barometer for the luxury industry.
Similarly, Richemont Group also made comments about a strong rebound in retail sales from Chinese markets.
In 2022, Swatch had made a target for double-digit sales, but by the end of the year, the sales were down by $761 million only.
Overall, there was a 2.5% increase in sales which made it worth CHF 7.49 billion. As for the net profit, it was recorded at around CHF 774 million last year.
According to experts, a miss in the sales target was not a big surprise if we looked at the situation in China. But for 2023, there is a home that healthy sales growth will originate from China.
For the current year, the Swatch Group is waiting for a sales growth of 23%! If we look at the situation in China, it seems that the group might manage to achieve these goals!