How much does the watch go up? Omega brand "51" explore the way

After nearly two months of watching, the impact of the new consumption tax on high-end watches has finally surfaced. Yesterday, the reporter learned from the inside of the Omega Shanghai Representative Office that from May 1st onwards, the Omega watch had a full price increase in China, which rose by 4% to 4.5%. Previously, Glashütte, who is also a brand of the Swatch Group, revealed to reporters that the official price increase on May 1 was an increase of 7%-8%. Swatch Group insiders revealed that its two high-end brands Baoji, Blancpain has also set the price adjustment rules, is expected to formally implement the new price in June.

Swatch and Richemont are currently the world's two largest watch groups. Industry analysis, the new consumption tax affects the sales of mid-end watch brands, that is, about 20,000 yuan in the watch consumer group will directly feel the impact of price increases; and the consumption of watch brands with a unit price of more than 100,000 yuan The group is not too sensitive to price adjustments, and this part of consumers generally has high loyalty to the brand.

Swatch occupies 80% of the global watch market. Its 20 watch brands are both high-middle and low-end. High-end brands such as Omega, Radar and Longines have entered the Chinese market for a long time. New consumption tax will have a direct impact on their sales. Almost all of its brands are high-end Richemont. As the degree of entry into the Chinese market is still shallow, and consumer groups have high brand loyalty and price fluctuation tolerance, Richemont will have more wait-and-see time.

According to Guo Jianguang, general manager of Solomon Watch & Jewellery Shanghai, Omega and Glashütte are two representatives of Swatch’s mid- to high-end brands and high-end brands. The first price adjustment has a pilot role.

Omega relies heavily on the Chinese market and is the leader in Swatch’s takeover of the Chinese market. As a result, Omega has become the first echelon of brand price adjustment. Although Glashütte is a high-end brand, there is a difference in market positioning between Baoji and Blancpain. Guo Jianguang said that the competitors directly confronted by Baoji and Blancpain are the top watch brands such as Patek Philippe and Vacheron Constantin, so the pricing will be more careful. Glashuti took the lead in the price increase, and the market reaction it received was helpful for the reference of Baoji and Blancpain.

Guo Jianguang said that after the announcement of the new consumption tax, the relevant levy details were not immediately introduced, and brand owners were scrutinizing which aspect of the tax rate they would collect. At present, after determining that the consumption tax will be collected at the customs clearance stage, each brand company can clearly establish its own new price accordingly.

Guo Jianguang stated that the implementation of new prices from May 1 will help brands to analyze the market's acceptance of new prices relatively accurately and conveniently. "May 1" is the peak period of sales of watches every year, and can get a lot of valuable data.