Op-ed: Is Covid-19 The Big Bitter Pill We Didn't Ask For, But Needed?

Fairs cancelled, stores shuttered, production lines halted. What good could come out of all this? Celine Yap, Esquire Singapore’s editor-at-large for watches and jewellery, contemplates the possibilities.

- Celine Yap

The Swiss watch industry is often described—or criticised, depending on context—for being slow to adapt and resistant to change. But in recent years it’s been nothing but change and constant adaptation across all segments of the market.

First came the global financial crisis of 2008/09 which put an end to the heady days of loud watches and overt consumerism. In response, the industry self-corrected by swinging back to understated watches—classic, elegant, ultra-thin became all the rage.

Then there was the anti-corruption crackdown in China that began in 2012 and all but decimated luxury consumption throughout the mainland. At that time, China was the only market in the world reporting not just positive numbers but double-digit growth, so this was a massive blow.

Fortunately, it wasn’t just Chinese officials who were buying up luxury watches but the burgeoning wealthy middle class and new rich. Binge shopping on expensive holidays were de rigueur for these young and trendy jet-setters with enough firepower in their wallets to buy everything in a Louis Vuitton store in one afternoon.

Moving the needle for brands large and small, Chinese buyers also prefer to shop in tax-free Hong Kong, which is regarded as the gateway to China for all foreign companies.

So when the 2019 Hong Kong protests against China descended on the city, forcing shops around the island to close for months, it created a huge dent in sales revenue that nobody knew how to fix.