The peak holding hands in the adverse attack of the low-watch market?

In the context of the global recession, China's luxury goods market has been the second largest market in the world in the past few years. The big luxury brands have tried every means to open up the gold market. The Swiss luxury group, Baume, has taken the initiative to establish a new company-celebrity Watch Trading (Shanghai) Co., Ltd. to help its watch-brand celebrity (&mercier) expand the Chinese market. The joint venture is now officially operational, with 50% of each holding a special responsibility for the distribution of celebrity watches in the mainland market. This breakthrough in the Cross-border integration of traditional channels is a major cooperation between the luxury sector. However, in the face of China's shrinking luxury market, celebrity watch breakthrough still difficult.

Peak cross-border cooperation Chow Tai Fook, need to borrow the Chinese brand

Calendar peak in the Chinese market, has a lot of good performance of the Watch brand, such as: Vacheron Denton, Cartier, Earl, Montblanc and so on. Only the celebrities have behaved poorly. Luxury watch brand in China's sales model for agents or direct Battalion, with the mainland companies joint ventures, the establishment of independent companies dedicated to a watch brand operating mode is less rare. Calendar Peak Use this innovative model, hope to borrow the strength of Chow Tai Fook, as a mature channel for celebrities, to create brand awareness, to seek new sales opportunities.

The peak choice of cooperation with Chow Tai Fook is the channel resources and brand advantages of Chow Tai Fook. Chow Tai Fook as the world's largest jewelry chain, since the entry into the mainland, relying on capital, brand, management and other advantages of rapid expansion, has occupied a larger market share, channel Network has formed a certain scale. With its extensive retail network and more than 1830 jewellery and watch retail outlets, Chow Tai Fook has gone deep into the three or four-line cities of the mainland.

For Chow Tai Fook, jewellery inlaid jewellery and gold products are the group's main sources of income, two product sectors contribute more than 80% of the revenue to the group, the establishment of the joint venture will undoubtedly complement and expand the Chow Tai Fook Watch retail business, which may be the opportunity for Zhou Fu to speed up the development of the Advanced wrist watch sales business.

The Chinese market is depressed, where are the celebrities breaking the road?

Despite the combination of the peak and Chow Tai Fook, but under the sluggish watch market, celebrities to stand out in the contrarian, I am afraid it is not so easy. China's luxury goods market in 2012 years, like a roller coaster, the sudden decline in gift market, sales of a sharp contraction, so that the future of high-end watches will not be clear. The Swiss watch industry Federation points out that the Swiss watch exports reached record highs in 2012, while exports to the Chinese market grew by only 0.6% per cent. In December 2012, the Swiss watch cut exports to mainland China and Hong Kong by 32% and 15% respectively, and in 2013 the decline intensified. The total receipts grew by only 1.5% from a year earlier, according to Chow Tai Fook March 31, 2013 's latest earnings. Among them, the performance of the watch business is not satisfactory, down 18.2% from the same period in 2012. In fact, not only the clock business, one of the main business products jewelry inlaid jewelry product sales also fell 14.4% year-on-year.

Ahead is the high-end wrist watch in China sales fever subsided, the rear is the Chow Tai Fook watch business decline, want to focus on the need to hope for long-term development. On the one hand, China's luxury goods market is still dependent on the gift of the sales route, when the national policy on its constraints, mining consumer customers real demand is the most important. On the other hand, the purchase of luxury consumers and consumer habits in the change, the first-tier city consumers buy luxury goods have tended to go abroad to buy directly, luxury goods online shopping is also increasingly developed. And the more affluent customers in the two or three-line cities began to be the main buyers, and the peak could be a powerful retail outlet for the products in the two or three-line cities, the future development may have a long-term growth.

Hope that the peak hand Chow Tai Fook can bring more and better products and services to Chinese consumers.

Mu Chaoxi

China marketing decision expert

Dean of the school of excellent marketing

Visiting Professor of Tsinghua University