Protecting The "swiss-made" Luxury Watch Label
Switzerland, home to almost each and every luxury watch brand in the world
, is seeking tougher rules to protect its "made in Switzerland" label.
It's not only luxury watches that the Swiss Government is seeking to protect, it's all luxury goods made in that country, from cheese and penknives to men's and women's luxury watches.
It's known that when something is labeled "made in Switzerland" consumers are willing to pay for that certification; up to 20% more.
This label along with the white on red Swiss cross logo has been stolen by counterfeit companies looking to produce and sell cheaper version of luxury goods. China is king of this practice and luxury watchmakers like the Swatch Group, Rolex and Richemont, which owns brands like Cartier watches, Jaeger-LeCoultre and Panerai, among others, are feeling the brunt of this.
To toughen the use of the right to use the "Swiss made" label, the government is proposing that "60% of the manufacturing costs of industrial products are accrued in Switzerland."
The luxury watch industry currently demands that at least 50% of a timepiece's mechanics must be made in Switzerland to qualify as "Swiss", but has already proposed an increase even for itself of 80%.
When shopping for a luxury watch its critical to make sure that the watch is certified and comes with a trackable serial number. However, it also pays to realize that one need not purchase a men's or women's luxury watch from the brand's boutique or another retailer; there are many online sellers that offer the real deal at less expensive prices.
Since China really and truly is the king of counterfeit, let's focus on them. Back in 2001 China was not considered the economic powerhouse that it is today. And in fact, the Chinese were so used and seemingly pleased with buying fake version of all luxury goods - handbags, watches, sunglasses and more - that no one really thought it would be a strong market for the real thing. Today it is. Back then it was Japan who was gobbling up luxury goods and today it is the Chinese.
Not only is China buying more than anyone else in the world, they are also exporting more than anyone else in the world, which is why the problem that the Swiss are experiencing is so serious. Already, luxury goods companies have suffered drastic drops in sales of their products, most notably in the U.S. which used to be the world's major economic powerhouse with an insatiable appetite for luxury items such as women's luxury watches, men's watches, jewelry watches and all designer watches.
According to consulting company Bain & Co, here are stats for the drop in the luxury goods market: in the first half of the year, the market shrank from $220 billion to $198 billion, reporting quarter-on-quarter losses of 15% in Q1 2009 and 20% in Q2 2009. The forecast for the entire year is an overall 10% drop which means that the numbers somewhat stabilized.
While spending money and desire for luxury goods grows in China and other emerging markets where there is a lot of new-found wealth, like Russia, this spending in the U.S. is expected to go down "16%, Japan down 10% and Europe down 8%." China's appetite is expected to grow by 12%.
And with a controlled population, a one child enforced policy, China had more parents and grandparents that want to spend and give money to only one child versus more. The importance of social status in China is also growing, which fuels a want to all things nice like luxury watches and designer handbags, clothes and shoes and more. Cartier watches, Gucci watches, Bvlgari watches, and others are hot tickets.
by: Chandra Coleman
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