Swatch Group faces difficulties in China due to consumers’ reactions to price increases.

Paris, 1 April 2024 Estimated reading time: 3 minutes In a revealing interview with Neue Zuercher Zeitung, Nick Hayek, CEO of Swatch Group, outlined a concerning outlook for the company in China for the remainder of the year. With consumers becoming wary of price increases, Swatch, a prominent Swiss watchmaker, foresees a challenging path in one of its most important markets. Hayek emphasized that while China holds considerable potential, a notable shift in consumer behavior has been observed, with many taking longer to make their purchases. "Customers have also become more price-sensitive as there have been excessive price hikes in many areas. I expect the Chinese market to remain challenging until the end of the year," explained Hayek. Swatch Group, known for its high-end watches such as Omega, Tissot, and Longines, as well as its plastic Swatch watches aimed at the general public, has been a major player in the global watchmaking industry. With the Hayek family holding 43% of Swatch's voting rights, questions about the possibility of Swatch going private were inevitable. However, Hayek dismissed this idea, citing the heavy debt such a move would incur, a prospect not favorable to the family's principles. "Going private is not possible without incurring massive debt, and we really don't like debt," he said. Regarding the company's succession and leadership plans, the CEO addressed the future role of his nephew, Marc Hayek, who is expected to join the board of directors in…