Watches&Wonders 3.0

Why hold a Fine Watch fair in Hong Kong when, since the beginning of the year, this portion of Chinese territory has been hitting the brakes? Over the first eight months of 2015, exports of Swiss watches to Hong Kong and China lost 21% and 9% respectively. These same statistics reveal a 38% drop for August alone that relegates the Celestial Empire to sixth position among the foremost destinations for Swiss timepieces, down three places. No matter: for the third consecutive year, Watches&Wonders takes up residence inside the Hong Kong Convention and Exhibition Centre (HKCEC), thus confirming its status as the number-one event in Asia for technical and precious watchmaking. The twelve exhibiting Maisons have no intention of letting up their efforts in a region that continues to dominate watch sales with 53% of the global market in 2014, ahead of Europe (31%) and the Americas (14%). More to the point, the Fine Watch segment is far from being the hardest-hit. During the month of August, export sales in the “upper segment” even inched forward, gaining 1.7% in value when the industry as a whole was down 1.6%.

A rock in a storm

Watches&Wonders has weathered many a storm in its three-year existence. After a bright start for the inaugural edition in 2013, clouds loomed the following year. The fair had barely opened its doors when students took to the streets, demonstrating against the voting system that Beijing intended to impose for the election of Hong Kong’s chief executive and blocking the streets around the convention centre. A cortege of protesters and police was hardly the welcome admirers of finely crafted watches were hoping for, with some understandably preferring to stay away. A year later and the economy is casting its shadow. The slowdown in China’s growth has been more abrupt than expected, a fact underscored by the stock market crash last August. Purchases of Swiss timepieces have also borne the brunt of anti-corruption measures. For both these reasons, the mood among watchmakers is no longer as buoyant.

Promising developments

Despite this, Watches&Wonders steers a steady course. The CEOs of the twelve exhibiting Maisons have all travelled to Hong Kong for the occasion, as have Bernard Fornas and Richard Lepeu who jointly hold the reins of the Richemont group. A group whose five-month sales to end August posted an unexpected and welcome 4% increase in sales at constant exchange rates (+16% at actual rates due to the weakening of the euro). Already last year, the fair turned up its share of surprises when three of the exhibitors took advantage of the event to unveil a new collection for women: Bohème at Montblanc, Promesse at Baume & Mercier, Portofino Midsize at IWC.

The sector has lost none of its verve, as the spurt of recent developments shows. For its 260th anniversary, Vacheron Constantin lifted the veil on the most complicated watch ever made, namely Reference 57260 and its 57 complications which took eight years to complete. Roger Dubuis continues to find new ways to play with its “astral skeleton” theme, while Richard Mille sends suggestive messages in mechanical form. Jaeger-LeCoultre is fresh from the red carpet at the Venice Film Festival while Piaget brings ever greater sparkle to High Jewellery in the company of Jessica Chastain. Need we say more? Watchmakers have made the Hong Kong fair a fixture of the horological calendar, whatever the economic or social climate. It serves as a showcase for new creations and, at the same time, a place to engage with an Asian clientele who warrant their every attention. This third edition of Watches&Wonders is dazzling proof.