A New Stat May Spell Trouble for the Luxury Market

A humdrum-sounding trade stat has caught the attention of the financial press because it may signal bigger trouble on two fronts: the luxury market in general and the Chinese economy in particular. The story revolves around pricey Swiss watches.

• A plunge: Sales of Swiss watches to mainland China cratered in September by a staggering 50%, reports the Wall Street Journal. Sales to Hong Kong fell by about 35%. Both markets are big hubs for the watches. As Quartz puts it, "China cooled to Swiss watches virtually overnight."

• A bad sign: Exports of Swiss watches "are a closely watched indicator for the overall health of the luxury goods sector," notes AFP. Looking at all markets, sales dropped 12% in September, with China's pullback the driving factor. Fortune notes that watch-makers in Switzerland have begun furloughing workers.
• China trouble? Luxury watch sales spiked after the pandemic, especially in China, and while a downturn may have been inevitable, it wasn't expected to be this sharp. As the Journal sees it, "the watch industry offers more proof that all isn't well with consumers in one of luxury's most important markets."

(More luxury goods stories.)