Navigating through the ongoing challenges in the Chinese market, Swatch Group, a leading Swiss watchmaker, anticipates a tough road ahead until the year’s end.
The company’s CEO, Nick Hayek, in an interview with Neue Zuercher Zeitung, highlighted consumer hesitation stemming from heightened price sensitivity.
This shift in consumer behavior is attributed to widespread price increases across various sectors.
Hayek remarked, “They have also become more price sensitive, because in many areas there have been excessive price increases. I expect the Chinese market to remain difficult until the year’s end.”
Swatch, known for its luxury brands like Omega, Tissot, and Longines, as well as its affordable Swatch watches, is facing the challenge head-on.
Hayek, whose family holds a significant stake in the company, discussed the possibility of delisting Swatch to favor its long-term growth.
However, he ruled out the option due to the heavy debt it would incur, stating, “That would surely be best for the long-term development of the company.
“But unfortunately, going private isn’t possible without getting massively into debt. And we don’t like debts at all.”
The conversation also veered towards succession planning within the company’s leadership.
Speculation about Marc Hayek, Nick’s nephew, potentially taking over the CEO role was addressed.
While acknowledging Marc’s dedication and alignment with the company’s values, Nick Hayek emphasized that any decision regarding leadership succession would ultimately rest with Marc himself.
“We know Marc is committed to the company, is passionate, does very good work and represents our corporate culture.
“But whether he really wants to run this company at some point or has other priorities is another question.
“My sister and I won’t order him to take over at any rate,” Hayek clarified, “That’s his decision.”
This candid discussion sheds light on the strategic considerations and familial dynamics at play within Swatch Group, as it navigates through uncertain times in a key market.