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Jun
2015

Watches & Jewellery June 2013

The watch and jewellery sector has seen low levels of activity in the past month, when speaking to senior operational staff they have indicated that business is slow and there is a relatively low volume of consumers visiting their stores. Watches in particular have been hit by the impact of new regulations related to gift giving, whereas jewellery is in the main a purchase for personal consumption.

Brand activities

Tiffany Group plans to open 14 stores in 2013, 6 located in America, 7 in Asia Pacific and 3 in Europe, it also closed one store in Japan and one in Taiwan. For the group, the Asia Pacific region excluding Japan is still the fastest growing market, delivering $US 223 Million sales in the first quarter, a 15% year-on-year increase. Since its arrival in China, the brand has only opened direct stores, and has not authorised any dealers to help explore new markets. Its 22 direct boutique stores are concentrated in the first and second tier cities such as Beijing, Shanghai, Chengdu and Shenyang. Earlier this year it opened two stores one in Shenyang and one in Xian. In addition to store openings, brand promotion was also strengthened in the first quarter, and it has been estimated that advertisements for Tiffany during that period increased by 63.46% year on year.

According to Richemont, Cartier and Van Cleef&Arpels achieved a growth in profit of 134% during the first quarter of 2013. Currently there are 224 Cartier points of sale in China, more than any other luxury brand, however this number is 10 fewer than last year. Apparently it closed some dealer stores last year but the plan is to carry on opening new stores moving forward. Piaget has also performed well during the first quarter. Their CEO claimed that 50% of their sales come from China. New stores have also opened in Shenyang and Nanjing earlier this year, and a further direct store will be opened in Chengdu at the end of 2013. Compared to watch division, unsurprisingly the Piaget jewellery products achieved better growth.

Store opening and activities

May

The first and only Audemars Piguet boutique store in Mainland China opened in Beijing Shinkong Place.

Tiffany opened a new store in Xian’s Zhongda International Plaza at the end of the month.

June

Tag Heuer and Bvlgari opened their third direct stores in Shanghai in L’AVENUE, which is now the new HQ of LVMH in China. Soon after Bvlgari held a 2013/2014 new product preview in the new store.

In the same month, Mikimoto opened a new store in Shanghai IFC.

On 7th June, Franck Muller celebrated its new store opening in Shenyang Forum 66, and on the same day, the first Breitling flagship store in Shanghai opened; the second flagship store in China after the one that opened in Beijing earlier this year.

The following day, the Van Cleef&Arpels boutique store in Naning Deji Plaza came into use.

Towards the end of the month, three brands belonging to the Swatch Group, Breguet, Blancpain and Jaquet Droz held a joint grand opening ceremony for their new stores in Shanghai’s Xintiandi.

And lastly the first Swarovski jewellery boutique store in the world selling its highest price point offering opened in the Beijing World Shopping Mall, its an interesting choice of location given the maturity of local consumers, and the competitive landscape in the city.


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