(Data: FactSet)
China's recent stimulus program to cut mortgage rates and rescue its stock market, which has been on a losing streak for nearly four years, could soon help reverse the watch market's fortune.
Swiss watch exports to China, the second biggest market in the world, had dropped -24.6% — in Hong Kong, -20.4% — when comparing January through September 2024 to the same period last year, while exports to the U.S. and Japan have slightly increased.
With the Chinese government hoping to jumpstart the country’s stock market and revive its economy, the luxury industry is poised to benefit, including Rolex.
In Shanghai, a new Rolex-only boutique managed by Bucherer will soon open, the first of its kind in China, a sign Rolex is using its recent 4-billion-Swiss-franc acquisition of Bucherer to expand the Crown’s network worldwide. Rolex’s global website already features the Shanghai store in its list of authorized dealers under the name of “HKRI Taikoo Hui (Bucherer), Shanghai” though no dates have been announced.