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Swiss watchmaker Zenith anticipates strong growth for 2022, which promises to be a record year.
The demand for luxury products is increasing every day, after the health crisis. The watchmaking industry was hit hard by the pandemic, but it was able to recover. And for Zenith, the figures speak for themselves.
The watchmaking company expects to close the year 2022 with strong growth: “2022 will be another record year. We will record a 30 to 40% growth in our turnover. Our profitability is also very healthy,” Julien Tornare, the director of the LVMH group subsidiary, told AWP.
After encountering some problems, the watchmaker has been able to rebound, like many of its competitors, thanks in particular to “revenge shopping” carried out around the world since the end of the health crisis. It is also attracting a new, younger clientele. In general, consumers are making a comeback in the luxury market, and are not hesitating to spend, whether on the Internet or in stores.
Despite the positive trend and the covid chapter that seems to be closed, some shadows are hanging over the picture, notably inflation, weighing in particular on energy prices and the fall of the stock market. The U.S. market is feeling the pinch: “In the U.S., we have seen some deceleration in our growth in the second half of the year. We hope that this situation is only temporary,” said Mr. Tornare.
China is also a cause for concern. In addition to the new, younger and more expensive clientele, Chinese tourists were and still are fervent buyers of luxury watches. However, with zero tolerance for the coronavirus in the Middle Kingdom, Swiss watch industry exports to this destination contracted by 12.3% in the first nine months of the year. Despite this, China remains the second most important market after the North American continent.
On the other hand, “Japan, Southeast Asia and the Middle East in particular have been very strong,” said the brand’s CEO.
Strong growth and new boutiques
In 2022, Zenith will have about 30 boutiques, including a dozen opened this year. Julien Tonare said that in the medium term, between 50 and 60 boutiques are targeted. But he said the company will continue to work with its retailers, who manage more than 500 points of sale around the world.
This year, the company will produce between 24,000 and 25,000 models, with an average price of between 10,000 and 11,000 Swiss francs. E-commerce represents 7 to 8% of revenues. The company now also sells second-hand timepieces, but revenues from this activity remain modest compared to the rest.
According to Morgan Stanley Bank, the Swiss watch brand known for its Chronomaster Sport and Defy collections, among others, has sales of about 112 million Swiss francs in 2021.
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Swiss watchmaker Zenith anticipates strong growth for 2022, which promises to be a record year.
The demand for luxury products is increasing every day, after the health crisis. The watchmaking industry was hit hard by the pandemic, but it was able to recover. And for Zenith, the figures speak for themselves.
The watchmaking company expects to close the year 2022 with strong growth: “2022 will be another record year. We will record a 30 to 40% growth in our turnover. Our profitability is also very healthy,” Julien Tornare, the director of the LVMH group subsidiary, told AWP.
After encountering some problems, the watchmaker has been able to rebound, like many of its competitors, thanks in particular to “revenge shopping” carried out around the world since the end of the health crisis. It is also attracting a new, younger clientele. In general, consumers are making a comeback in the luxury market, and are not hesitating to spend, whether on the Internet or in stores.
Despite the positive trend and the covid chapter that seems to be closed, some shadows are hanging over the picture, notably inflation, weighing in particular on energy prices and the fall of the stock market. The U.S. market is feeling the pinch: “In the U.S., we have seen some deceleration in our growth in the second half of the year. We hope that this situation is only temporary,” said Mr. Tornare.
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Swiss watchmaker Zenith anticipates strong growth for 2022, which promises to be a record year.
The demand for luxury products is increasing every day, after the health crisis. The watchmaking industry was hit hard by the pandemic, but it was able to recover. And for Zenith, the figures speak for themselves.
The watchmaking company expects to close the year 2022 with strong growth: “2022 will be another record year. We will record a 30 to 40% growth in our turnover. Our profitability is also very healthy,” Julien Tornare, the director of the LVMH group subsidiary, told AWP.
After encountering some problems, the watchmaker has been able to rebound, like many of its competitors, thanks in particular to “revenge shopping” carried out around the world since the end of the health crisis. It is also attracting a new, younger clientele. In general, consumers are making a comeback in the luxury market, and are not hesitating to spend, whether on the Internet or in stores.
Despite the positive trend and the covid chapter that seems to be closed, some shadows are hanging over the picture, notably inflation, weighing in particular on energy prices and the fall of the stock market. The U.S. market is feeling the pinch: “In the U.S., we have seen some deceleration in our growth in the second half of the year. We hope that this situation is only temporary,” said Mr. Tornare.
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