Categories: Fashion

Richemont’s Rupert says luxury watchmakers must cut production

By

Bloomberg

Published



September 11, 2024

The head of Richemont, the owner of Cartier and Vacheron Constantin, said the luxury watch industry must reduce production after a downturn in demand for costly timepieces. 

Richemont – Richemont

Chairman and founder Johann Rupert told shareholders at the Swiss luxury conglomerate’s annual general meeting that global demand for watches “has gone past the boom,” held back by subdued sales in mainland China and Hong Kong. 

“One should be cautious in just trying to pursue volume,” the South African billionaire said in Geneva on Wednesday. 

The Richemont chairman, whose brands also include IWC, Jaeger-LeCoultre and Van Cleef & Arpels, applauded private competitors in the watch industry for showing restraint. The biggest closely held watchmakers in Switzerland include Rolex SA, Patek Philippe SA and Audemars Piguet Holding SA.

“We have a close relationship with the private competitors and we know what they are doing and they are acting very responsibly by constraining production,” he said. 

Although Rupert controls Richemont through a family trust that has a majority of the voting shares, the stock is publicly traded and the company is required to provide detailed financial updates. By contrast, closely held watchmakers in Switzerland “don’t have shareholders to report to,” he added.

After three years of gains at record value levels, Swiss watch exports have declined this year. Consumers turned cautious as pandemic-era savings ran dry following a period of high inflation and as a strong Swiss franc raised watch prices and crimped profits for producers. 

Bloomberg News reported last week that makers of watch components and some brands are using a Swiss government program that allows them to furlough employees and reduce production without permanent job cuts.

 

News Today

Recent Posts

Kareena Kapoor’s Next Untitled Film With Meghna Gulzar Gets Prithviraj Sukumaran On Board

Kareena Kapoor is working with Raazi director Meghna Gulzar for her next film. The project,…

14 hours ago

Purdue basketball freshman Daniel Jacobsen injured vs Northern Kentucky

2024-11-09 15:00:03 WEST LAFAYETTE -- Daniel Jacobsen's second game in Purdue basketball's starting lineup lasted…

14 hours ago

Rashida Jones honors dad Quincy Jones with heartfelt tribute: ‘He was love’

2024-11-09 14:50:03 Rashida Jones is remembering her late father, famed music producer Quincy Jones, in…

14 hours ago

Nosferatu Screening at Apollo Theatre Shows Student Interest in Experimental Cinema – The Oberlin Review

2024-11-09 14:40:03 A silent German expressionist film about vampires accompanied by Radiohead’s music — what…

15 hours ago

What Are Adaptogens? Find Out How These 3 Herbs May Help You Tackle Stress Head-On

Let's face it - life can be downright stressful! With everything moving at breakneck speed,…

15 hours ago

The new Mac Mini takes a small step towards upgradeable storage

Apple’s redesigned Mac Mini M4 has ditched the previous M2 machine’s SSD that was soldered…

15 hours ago