Swatch buyers in China hesitate due to higher prices

The Chinese market is expected to remain difficult until the end of the year, with consumers hesitant about higher prices, said the chief executive of Swiss watch group Swatch Group.

Swatch CEO Nick Hayek told the newspaper Neue Zuercher Zeitung that China still has great potential, but consumers are waiting a long time before making purchases.

“They have also become more sensitive to prices, because in many areas there have been excessive price increases. I estimate that the Chinese market will remain difficult until the end of the year”, said Hayek in an interview published over the weekend.

Swatch makes high-quality Omega, Tissot and Longines watches, as well as the namesake plastic models for the mass market. Hayek, whose family controls 43% of Swatch’s voting shares, was asked if he would like to take the company private.

“That would certainly be best for the company’s long-term development. But unfortunately, it is not possible to go private without taking on huge debts,” said Hayek, whose sister Nayla is president of Swatch. “And we don’t like debt at all.”

The newspaper also asked the CEO whether his nephew, Marc Hayek, who is expected to be elected to the company’s board in May, would eventually replace him as chief executive.

We know that Marc is committed to the company, is passionate, does a very good job and represents our corporate culture. But whether he actually wants to run this company at some point or whether he has other priorities is another question.

“My sister and I will not ask you to take control in any way,” he stressed. “That’s his decision.”