ZURICH (Reuters) – The Chinese market will be difficult until the end of the year, with consumers hesitant to face rising prices, the chief executive of Swiss watchmaker Swatch Group (SIX) said in a newspaper interview :).
Swatch CEO Nick Hayek told Neue Zuercher Zeitung that China still has great potential, but consumers are waiting a long time to make purchases.
“They have also become more price sensitive, because in many areas there have been excessive price increases. I expect the Chinese market to remain difficult until the end of the year,” Hayek said in the interview published over the weekend.
Swatch produces high-end Omega, Tissot and Longines watches, as well as the mass-market plastic models of the same name. Hayek, whose family controls 43% of Swatch’s voting shares, was asked whether he would delist the company.
“It would definitely be the best thing for the long-term development of the company. But unfortunately, going private is not possible without going into massive debt,” said Hayek, whose sister Nayla is Swatch’s president. “And we don’t like debt at all.”
The newspaper also asked the CEO whether his nephew, Marc Hayek, who is expected to be elected to the company’s board of directors in May, would eventually replace him as CEO.
“We know that Marc is committed to the company, is passionate, does great work and represents our company culture. But whether he actually wants to run this company at some point or has other priorities is another question.
“My sister and I will not order him to take over anyway,” she said. “That’s his decision.”