Keystone/Peter Schneider
The luxury goods industry continues to be confronted with weak demand in the Chinese market.
In the recent past, the Chinese market has been the industry’s strongest growth driver, according to a UBS study published on Monday. However, with the continuing uncertainties in the key growth market of China, the focus in the coming year will now increasingly be on the United States, where the favourable stock market performance and decreasing political uncertainty should stimulate demand.
+Get the most important news from Switzerland in your inbox
UBS experts are forecasting mid-single-digit percentage growth for the sector in the United States in the coming year. The main drivers will be the jewellery business and high-priced watches, the analysts say. Luxury watches such as Rolex or Patek Philippe are increasingly valued by wealthy consumers as an investment. Swiss luxury group Richemont therefore remains one of the favourites among companies.
More
More
Why watch sharing doesn’t work – even in Switzerland
However, the study also identifies risk factors for Swiss companies in the US: for example, possible US tariffs on European imports could be passed on to consumers, which could push up the prices of luxury products.
Adapted from German by DeepL/ac
This news story has been written and carefully fact-checked by an external editorial team. At SWI swissinfo.ch we select the most relevant news for an international audience and use automatic translation tools such as DeepL to translate it into English. Providing you with automatically translated news gives us the time to write more in-depth articles.
If you want to know more about how we work, have a look here, if you want to learn more about how we use technology, click here, and if you have feedback on this news story please write to english@swissinfo.ch.
