Breitling CEO Optimistic Amidst Luxury Sector Slowdown; Eyes India as Potential Growth Market

The CEO of Breitling is optimistic that the luxury industry's downturn, largely influenced by China, has reached its lowest point. The company views India as a promising prospect due to advancements in distribution networks and the rise of new shopping complexes.

Georges Kern, the CEO of Breitling AG, is highly optimistic that the luxury market has reached its lowest point, following a global economic decline driven by China that has negatively affected upscale retailers worldwide.

The issue plaguing many brands in the Swiss watch industry is their reliance on the Chinese market," he expressed during a Wednesday interview with Bloomberg Television. "Consider it like an aircraft with four or five engines. If one fails, you're reliant on the remaining engines to keep functioning."

Last week, Swiss watch manufacturers expressed concern about a pessimistic future for the sector, which has been struggling with a decline in sales from previously affluent Chinese consumers, who represent the largest market after the US, and a fundamental part of the worldwide luxury market. Kern stated that China accounts for 6 per cent of Breitling's sales.

Purchasers of luxury watches reduced their expenditures due to rising interest rates and escalating geopolitical tensions. This resulted in a significant drop in sales in China for renowned watch manufacturers such as Swatch Group AG, the owner of Omega, and Richemont, the conglomerate that owns brands like Vacheron Constantin and IWC.

Kern pointed out promising areas such as India, where the luxury sector has benefitted from increased distribution and the inauguration of new malls. This development has simplified the buying process for individuals who previously made their purchases overseas. Kern mentioned that Breitling plans to establish two or three additional stores in the nation, although he did not specify a timeline for this expansion.