Oris boss senses restraint in the watch business
Published: Tuesday, Apr 9th 2024, 18:10
Updated At: Wednesday, Apr 10th 2024, 01:59
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After the record-breaking run of recent years, a certain restraint is now spreading among consumers in the luxury goods markets worldwide. The Basel watch manufacturer Oris, based in Hölstein, is also feeling the effects. However, Oris CEO Rolf Studer is convinced that demand for mechanical watches is likely to remain strong in the long term.
"The past few months have shown the watch industry that geopolitical crises, economic concerns and rising prices do not leave it unscathed," said Studer in an interview with the news agency AWP at the Geneva watch fair "Watches&Wonders", which kicked off on Tuesday. However, the return to normality is also a "healthy development" for the industry after the recent "fantastic years".
"At the moment, people are more likely to spend their money on vacations, going to restaurants or other purchases than on buying a mechanical watch," Studer continued. Times have become more challenging for watch manufacturers and retailers. This can be seen particularly in the important Chinese market, but also in Europe, for example in Germany.
Booming US business
Last year, business at Oris was still running at full speed. "We climbed from record to record in terms of turnover," said Studer. Business was driven by the USA, where Oris achieved double-digit growth and now generates the highest turnover.
However, Oris does not provide specific information on turnover or the number of units sold. Meanwhile, the bank Morgan Stanley estimated turnover in 2023 at 75 million francs with around 52,000 Oris watches sold. The watches are available at prices ranging from 2,000 francs to 18,000 a piece.
"But we also achieved double-digit percentage growth rates in India and Mexico. And this is still the case there today," continued the Oris CEO. Business in Asia, on the other hand, is proving more difficult. In addition to China, this is also the case in Korea, for example.
Good prospects
In the longer term, Studer believes that the Oris brand, with around 2,100 points of sale worldwide and 30 of its own boutiques, is still well positioned. He is convinced that the mechanical watch will remain relevant on people's wrists.
He is encouraged by the observation that more and more young people are taking a liking to mechanical watches, even if this product is expensive. Young people have shown an interest in mechanical watches during the pandemic and have also found their way to Oris via social media.
Meanwhile, Studer is very concerned about the strong franc. Even though the currency situation has eased somewhat in recent weeks, the strength of the franc remains a major challenge. The company lacks this money, which it could use for investments, marketing or personnel.
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