Battling the Swiss Watch Industry Market at Baselworld

Grabbing market share will be the key battle of Baselworld this year. The Federation of the Swiss Watch Industry predicts Swiss watch exports will remain stable in 2015 after eking out 1.9 percent growth last year. Therefore, brands must win a bigger slice of the pie in order to post growth. To do this, they will have to vanquish hurdles including sharp currency fluctuations, a recent slowdown in U.S. sales growth, political turmoil in Ukraine and Hong Kong, and the potential impact of lower oil prices on Middle Eastern demand. Leading watchmakers including Swatch Group and Patek Philippe have adjusted prices ahead of the show in reaction to the decision by the Swiss National Bank in January to de-peg the Swiss franc from the euro, causing the currency to appreciate sharply not only against the euro, but also against the dollar and the yen. Others, like Ulysse Nardin, have shortened their staff’s working hours as volatile demand for luxury timepieces forces them to scale back production. Tough market conditions notwithstanding, executives — mindful of gaining a mental edge on their competitors — projected confidence heading into the show, which runs today through March 26. “The current economic situation is challenging for every player in the luxury

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