SWITZERLAND. After last year’s uncertainties and the shortage of buyers at Baselworld 2003, this year brought the exact opposite and business was at its briskest since 2001. According to some leading suppliers we contacted, there were few moments to spare in the entire seven days of this week’s show. Final numbers are expected to show some 80,000 in attendance at the fair, which closes today: up by a fifth from 2003.
“Both agents and operators have made definite commitments for both current and future deliveries. For the company as a whole it was the best ever Basel fair,” Festina USA duty free director Roger Winton told The Moodie Report.
“A lot of this is attributed to [our] daring use of colour in watch bands and dials, combined with new shapes and an expansion of the larger looks. Feedback from clients in Central America, Caribbean and the Americas market was that Festina had many looks and concepts not found elsewhere… If the record breaking orders received are any indication, then the same reaction was true in Europe and Asia.”
“There is no comparison. There are more visitors from abroad. Asia is here, the Middle East is here and there are many more customers from America,” said Maurice Lacroix sales director Martin Bachmann, speaking to Reuters on the sidelines of the show.
“It is definitely better than last year,” agreed Blancpain executive Frank Trivino.
Swatch Group CEO Nick Hayek said recently that he was very optimistic for the sales trend this year, helped by strong growth in the US market in particular.
“I believe people were fed up. Confidence is back,” said Francois Thiebaud, president of Tissot, one of Swatch Group’s top three brands. “The first few months of the year were really excellent. [We saw] really good double-digit growth.”
Stephen Urquhart, president of another leading Swatch brand, Omega, said that while he was optimistic, the watch sector was still jittery, particularly over security. “Hopefully there is not another major setback,” he said. “You never know what will happen. Today, everything is conceivable; terrorism, anything.”
Timex president and CEO Joe Santana said international business was better this year. “No question, the international markets particularly are doing better than they were. I cannot say it will be a record year, but for sure it will be the best year since September 11.”
In the travel retail sector Festina says Asia is poised for rapid and sustainable growth. “Festina has been expanding rapidly in both Europe and the Americas and is now on major airlines, airports, border crossings, cruise ships and key locations where travellers are prevalent. This growth is spurred by the chairman’s vision,” said Festina’s Winton.
Since being launched in the US domestic market in 1998, followed by US duty free and travel retail in 2002, Festina has been growing rapidly. The company believes it is the fastest-growing watch brand in Europe, and is ranked number one in unit sales in Spain, France and Belgium. It is in the top ten in most other European markets.
Over the past four weeks a new agreement was signed by Festina for distribution in Japan, and negotiations are under way to appoint a South Korean domestic and duty free agency. It is with to an eye on the large potential of the Chinese market that this year Festina will start a marketing programme in Asia. The company will be showing at the TFWA Asia Pacific Exhibition in Singapore next month.
The Swiss Watch Federation expects the industry to expereince a better year in 2004, with forecast growth of +3% to +4% driven by increased Asian demand.
