Swatch Group Sales Collapse. China Blamed. Will Rolex Be Next?
Sale Group revealed its sales data for the first half of 2024 and it is dire. Steep declines in sales and earnings were shown, far below the consensus forecast. The cause? Per Swatch Group, it is driven by a major decline in demand for luxury goods in China.
On this livestream we will explore this concept. We shall go over the Swatch Group sales data to set the stage. Then, given the importance of China to the watch industry, I will go over the economic situation in China, spending time on the Third Plenum, President Xi Jinping's struggles with the economy, and how his decisions tie to the current economic outlook and what will be done about it.
So, this episode may get a bit geopolitical, but all that is to lay the groundwork for is the situation Swatch Group-specific, will others like Rolex have a similar sales slump, and when will those sales recover in China? What does that mean for the rest of the world?
Reuters article on Swatch Group's January-June 2024 sales: https://www.reuters.com/business/reta...
Foreign Policy article on China's Third Plenum: https://foreignpolicy.com/2024/07/16/...
Firstpost article on the purpose of the Third Plenum: https://www.firstpost.com/world/is-ch...
Asia Times article on what came out of the 2024 Third Plenum: https://asiatimes.com/2024/07/beijing...
Join the 99¢ Club at: / @watcheswithdennis
Participate on the Watches with Dennis Discord at: / discord
#watches #swatch #rolex #china