Finding a Cheap Omega Watch Has Just Got a Lot Harder

For a watchmaker, Swatch Group AG has pretty terrible timing Swatch is heavily exposed to China and Hong Kong, with 22% of its revenue coming from the mainland and 11% from Hong Kong, according to analysts at Bryan Garnier Sales in Hong Kong fell by a double-digit percentage in the first half because of the protests and political turbulence in the city, Swatch said.

With such a big exposure Swatch is clearly at risk from any prolonged problems in Hong Kong, and from any broader Chinese slowdown related to the U.S price war At the same time, shoppers are starting to favor Apple-style smartwatches, which is bad news for Swatch's brands at the more affordable end of the market.

Despite the setbacks, Swatch shares rose by 5% because of a positive surprise on operating profit and relief that it was tackling the gray market problem Swatch may well be able to navigate the challenges ahead, but don't set your watch by it. . Source