Chinas economic slowdown and the government-led anti


China’s economic slowdown and the government-led anticorruption drive are putting the squeeze on Swiss luxury watch brands. Many of these brands depended on China for growth. According to a report by Deutsche Bank, exports of Swiss watches to China plunged 26 percent in March 2013 compared to 3/2012. One bit of good news is that China is cutting import duties by 60 percent on Swiss watches. On the other hand, Swiss watches are facing competition now from domestic watch brands (e.g., Seagull and Shanghai Watch). Still, the top 10 most wanted watch brands in China, with the exception of Cartier, are still Swiss-based. Given the mounting challenges, what can Swiss luxury watch brands like Rolex and Longines do to build loyalty in China?

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Operation Management: Chinas economic slowdown and the government-led anti
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