Watch business is difficult,Omega watch selling Borel does not play

Hong Kong Watch retailer Borel (01856.HK), prior to issued announcement.Lin the largest single shareholder companies will sell all the shares held by the. According to the announcement, shares held by Lin for 9975.5 million shares, representing the company’s issued share capital of 28.71%.It have all been sold to a sense control International Limited company.The latter is the transaction paid approximately HK $2.25 billion.
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It is reported that the transaction will be completed in May 18th, Control International Limited Sense will become the largest shareholder of omega seamaster 300  watch retailer.The main attack on the Chinese market “Swiss watch”Speaking of Borel, perhaps Chinese consumers the most exposed to the “Swiss watch”, several other similar brands is plum, enicar and so on.Public data shows, Borel was founded in 1856, is a company specializing in the production and sale of various watches company. The brand is also one of the early Swiss watch to enter china. But with its sales in Chinese market deeply, many Hongkong businessmen also smell the opportunity.
As a truly international (0732.HK) founder, Lin Weihua in the early 90 years through the acquisition of Borel truly international brand. Letter of 1991 international listing, Borel was stripped out of the parent company. This is why the current market will say is “pseudo Borel Switzerland” watches.
In 2016, Borel listed in Hongkong. Borel prospectus shows that in fiscal year 2011 to 2013 fiscal year, Borel revenue compound annual growth rate of up to 11.1%, gross profit compound growth rate of 16%, 2013 fiscal year profit up to 93 million Hong Kong dollars. IPO raised funds are mainly used to expand and strengthen the distribution network, brand and watch marketing promotion and capital expenditure and continued expansion of production capacity.
At that time, Chinese has become the world’s largest sales market in borel. As of December 31, 2016, the company has 1054 sales points, of which 852 point of sale in the Chinese market.
Which ranked fourth in the China Borel watch market, the company attaches importance to the couples is ranked second in the market. Borel when the plan is the next 3 years (from 2016 January 1 date) in the Chinese market new 300 point of sales, and focus on developing the second and third line cities.
Dragged down by the big environment performance
However, after the listing of the bad luck borel. The company, which has been on the market since its listing in July 2016, has issued a profit warning for the two time since the global market downturn. The in the latest release in April 2015 earnings display, by Chinese market economic slowdown, cause the company achieved a turnover of HK $4.14 billion, down 31.2%; net profit loss 1191.6 one million Hong Kong dollars, plummeted 120%.
As the core of the Chinese mainland market, EBOHR’s sales fell to HK $30.7% last year, the number of stores by 852 to 817 to 35.
Also affected by the decline in the number of passengers and the Hong Kong retail market deterioration, Borel Hong Kong, Macao and Southeast Asia market sales decreased 33.3% to HK $94.6 million.
In the industry, Borel’s watch is usually classified into the low-end, but because the company from last year began to develop and launch a series in the end and high-end watches expand watches products, the company sent expected by optimizing product mix to complete to stimulate the growth of the key. But, at present, it seems that this strategy may be wrong.
The industry that is turning to high-end market is not wise, because of the influence of anti-corruption policy and high-end watch sales fell more obvious.
“In Hongkong, the watch market is largely driven by the sales of high mechanical watches.” Euromonitor International Personal Accessories analyst Jasmine Seng told the “first finance and economics”, but now the price of watches and clocks are in decline, high-end mechanical watches category in the past two years sales fell by 1.4%, but China’s Hong Kong region fell by 7%. “The appreciation of the Swiss Franc has also led to a rise in the cost of production of the Hongkong watch retailer.”
In addition, Seng Jasmine also suggested that Hongkong’s high rents are a big reason for many retailers to close.

She expected that the market will continue to deteriorate in Hongkong watch and watch, they may not have seen the worst of it.”
Impact of smart watches
In fact, the current market is a dismal watch industry. With well-known Swiss watch Swatch Group as an example, the watch industry giant released the latest 2015 earnings reports showed that its net revenue fell 3% to 84.5 billion Swiss francs.

In addition, its net profit fell 21% to 11.2 billion. It is worth noting that this is the company’s first sales in six years to come back.
Swatch earnings report mentioned the main reason for the decline in sales is affected by changes in exchange rates, as well as the market demand for watches to reduce.
So overall, with respect to corruption, Hong Kong Tourism downturn, such as Borel, Swatch such low-end watches appears to have been the impact of more should be — market watch demand reduction.
Throughout the perimeter, the person wearing a watches significantly reduced. The habit of wearing a watches is a series of electronic products such as mobile phones have been weakened. Nowadays, people want to know the way of time becomes much, so watch is no longer necessary goods.
On the other hand, on the same level, smart watches also occupy the traditional watch market. Apple, HUAWEI, led by the size of the technology company in the field of smart watches step by step, you can see the information and reports related to the product. At present, it is difficult to say the impact of smart watches Swatch and other traditional watch group in the end how much. However, it can be seen that

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