Corruption crackdown concerns watchmakers

Luxury watch manufacturers are concerned that slowing sales in China brought on by anti-corruption measures cannot be offset by other markets, Reuters reported. Heads of some of the world’s largest watchmakers such as Patek Philippe said demand for their products have slumped in Greater China, particularly for high-end models. Watch exports to the mainland fell by more than 25% during the first quarter of the year. A note from Citi Research cited President Xi Jinping’s crackdown on corruption and extravagant spending as a reason why the high-end, but not necessarily the mid-range, watch market was in decline. Weak gold prices also hurt companies because many said they hedged purchases in the metal, and gold watches were becoming less appealing.