Luxury watchmakers follow the money to Asia

A measure of any Asian businessman is the time he keeps and, far more importantly, the watch he wears to mark it.

A handshake can be soft or firm but will likely soon be followed by a glance to the wrist to see the watch wrapped around it, especially in China.

A heavy slab of gold could be a marker that the person is from an inland city. A more expensive, understated watch could be a sign that they're from the coastal cities of Shanghai, Shenzhen or Beijing.

New money, in Chinese terms, versus old. Around 10 or 15 years ago, the coastal cities would also just go for gold; a chunky watch with a meaty gold strap, says watch enthusiast Harry Qin.

"In Asia probably more than in Europe or North America, a watch is something that can hint the status," the Shanghai private equity investor, who has a $250,000 collection of 18 timepieces, told AFP.

"But many businessmen just wear a gold Rolex. Especially in less developed cities inland, a gold Rolex is still a very easy way to show other people that you've got money."

Taste for fine watches has developed over time, says Qin, who is just one of the many enthusiasts and serious collectors in Asia that helped make 2010 the second best year in the Swiss watchmaking industry's history.

Not bad, in the middle of a severe global downturn.

Jean-Daniel Pasche, president of the Federation of the Swiss Watch Industry, estimates export sales for brand new watches for 2010 should be "slightly better" than the 2007 figure of $16.5 billion. Only 2008 was better, at $18 billion.

Over half of those exports went to Asia.

"It is our first market," he told AFP. "For the first eleven months of 2010, 52 percent of our Swiss watch exports in value went to Asia.

"Asian markets, except Japan, are generally growing faster and stronger than other markets due to the positive economic situation in these countries."

Sales were up almost 55 percent in mainland China and almost 46 percent in Hong Kong.

The main driver behind the market is simple: hundreds of thousands of Chinese people now have serious money to spend.

According to the Hurun Rich List, the Chinese equivalent of the Forbes or Sunday Times rich lists, there are now 875,000 Chinese worth over a million US dollars. And almost 200 of these are billionaires.

Hurun also compile a list of what brands are favoured by China's ultra-rich. Patek Philippe is the top luxury watch, followed by Vacheron Constantin, then Cartier.

But Thierry Dupois, the federation's Asia chief, says the Chinese have always loved watches.

"First and foremost, in China, there is a passion for timekeeping and fine watches that has existed for centuries," he told AFP.

"In addition to that, in today's Chinese society, there is of course the interest in watches as a 'status-symbol'."

Resellers also had a good year. Christie's notched up more than $90 million globally in watch sales, the auctioneer's highest ever figure for watches - $27 million of that figure came from the firm's Hong Kong auctions.

But Sam Hines, head of watches sales for Christie's Hong Kong, says Asian buyers are not just showing up at Hong Kong auctions. They are attending auctions all over the world.

"Asian buyers are everywhere now," he told AFP. "In 2010, the Asian buying in our Christie's global sales increased 84 percent in value compared to 2009."

Su Jia Xian, a watch collector who helps run the PuristSPro.com dedicated watch website, says Chinese buyers now have specific preferences.

"At the top end of the market Vacheron Constantin and Blancpain are notably popular. Each derives 50 percent or more of its sales from China," the Singaporean told AFP.

"In the mass market segment Omega is the leader, but Rolex does well too.

"The taste of the Chinese market is fairly conservative by the standards of the rest of the world, it likes smaller, round watches in yellow or rose gold, sometimes with a matching gold bracelet."

Omega president Stephen Urquhart says Asian buyers are particularly well informed about the brand and know what they want before they buy, the watchmaker's links to the James Bond movie franchise also helped boost sales.

"Asia is incredibly important to the brand," he told AFP. "We've been there for more than a century and have a leadership position in almost every Asian market.

"During the financial downturn we were able to gain share in all the markets there and I think that's a testimony to the strength of the brand in Asia."

At watch auctioneer Antiquorum's Hong Kong offices, 452 rare and expensive watches are splayed out across tables and cabinets and stacked in boxes as staff catalogue, price and number them for an auction expected to raise around $4 million.

Top of the range here is a Patek Philippe 'Celestial' which tracks the northern hemisphere's stars as well as tell the time. It might take at least an hour to set but it's expected to sell for $200,000.

Other watches include a rare 1958 'James Bond' Rolex, expected to raise $65,000 and another Patek Philippe, an 18 carat yellow gold watch which is also worth around $200,000.

The most expensive timepiece Antiquorum has ever sold was a Patek Philippe pocket watch, bought in Geneva in November 2009 by a Taiwanese buyer for $4 million.

"It's one of the very few investments that you can appreciate every day," Louisa Lo, Antiquorum Asia's marketing director, told AFP.

"You can wear it on your wrist, you can show off to your friends, you can appreciate the movements, the intricate details. These are not the kind of enjoyments you can get from, let's say, a yacht or luxury properties."

Over half the bidders at the auction on February 26 are expected to be from mainland China, the rest will be from Hong Kong, Taiwan, Singapore, Malaysia and Indonesia.

Mr Qin, the Shanghai private equity investor and watch enthusiast, was in Hong Kong on business but also to have the staff inspect his $13,000 Chopard watch. And to check out the wares, he often bids online for fine watches.

"I buy watches to wear," he told AFP. "I also like to keep a few in my drawer to admire and to wind. I have loved watches for a long time, it is the mechanical side I like. Their movement. Their sound.

"I hope they will appreciate in value over time but that is not the main reason. I love them. There is something very special about a good watch."

aad/lb-ns

 

News
news
Sport
Danny Cipriani of England breaks clear to score his second try
rugby
Life and Style
New research says leaving your desk can help you to avoid serious illness
health
Arts and Entertainment
tvSPOILER ALERT: Like a mash-up of 28 Days Later, Braveheart, The Killing and Lord of the Rings, this GoT episode was a belter
Life and Style
ebookNow available in paperback
ebooks
ebookA delicious collection of 50 meaty main courses
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

ES Rentals

    iJobs Job Widget
    iJobs Fashion

    Recruitment Genius: Graduate Trainee

    £15000 - £20000 per annum: Recruitment Genius: This Cloud ERP Solution Provide...

    Recruitment Genius: Business Development Executive / Digital Marketing Executive

    £26000 - £35000 per annum: Recruitment Genius: A luxury beauty house with a nu...

    Recruitment Genius: Housekeepers - Immediate Start

    £8 per hour: Recruitment Genius: This company are currently recruiting new exp...

    Recruitment Genius: Head Concierge

    £25000 - £28000 per annum: Recruitment Genius: This award winning Property Man...

    Day In a Page

    On your feet! Spending at least two hours a day standing reduces the risk of heart attacks, cancer and diabetes, according to new research

    On your feet!

    Spending half the day standing 'reduces risk of heart attacks and cancer'
    Liverpool close in on Milner signing

    Liverpool close in on Milner signing

    Reds baulk at Christian Benteke £32.5m release clause
    With scores of surgeries closing, what hope is there for the David Cameron's promise of 5,000 more GPs and a 24/7 NHS?

    The big NHS question

    Why are there so few new GPs when so many want to study medicine?
    Big knickers are back: Thongs ain't what they used to be

    Thongs ain't what they used to be

    Big knickers are back
    Thurston Moore interview

    Thurston Moore interview

    On living in London, Sonic Youth and musical memoirs
    In full bloom

    In full bloom

    Floral print womenswear
    From leading man to Elephant Man, Bradley Cooper is terrific

    From leading man to Elephant Man

    Bradley Cooper is terrific
    In this the person to restore our trust in the banks?

    In this the person to restore our trust in the banks?

    Dame Colette Bowe - interview
    When do the creative juices dry up?

    When do the creative juices dry up?

    David Lodge thinks he knows
    The 'Cher moment' happening across fashion just now

    Fashion's Cher moment

    Ageing beauty will always be more classy than all that booty
    Thousands of teenage girls enduring debilitating illnesses after routine school cancer vaccination

    Health fears over school cancer jab

    Shock new Freedom of Information figures show how thousands of girls have suffered serious symptoms after routine HPV injection
    Fifa President Sepp Blatter warns his opponents: 'I forgive everyone, but I don't forget'

    'I forgive everyone, but I don't forget'

    Fifa president Sepp Blatter issues defiant warning to opponents
    Extreme summer temperatures will soon cause deaths of up to 1,700 more Britons a year, says government report

    Weather warning

    Extreme summer temperatures will soon cause deaths of up to 1,700 more Britons a year, says government report
    LSD: Speaking to volunteer users of the drug as trials get underway to see if it cures depression and addiction

    High hopes for LSD

    Meet the volunteer users helping to see if it cures depression and addiction
    German soldier who died fighting for UK in Battle of Waterloo should be removed from museum display and given dignified funeral, say historians

    Saving Private Brandt

    A Belgian museum's display of the skeleton of a soldier killed at Waterloo prompts calls for him to be given a dignified funeral