The demand for Swiss watches has declined so much that manufacturers are buying back unsold supplies from retailers. Watches worth 1,3 million Swiss Francs (CHF) were sent back to Switzerland; in comparison, in 2002 CHF393 million worth of unsold watches were bought back. Recent earnings reports from luxury producers like Prada, Burberry, Richemont and LVMH (which owns brands like Louis Vuitton, Dom P
Factors that are put forward that led to the decline include a loss in Chinese appetite and spending power for luxury goods, a fall in tourists visiting Europe and a sales slowdown in Hong Kong. Consequences of this trend are clear: Richemont and other luxury goods houses plan to lay off employees and cut back production and are refocusing their strategy in order to remain competitive in this highly select market.