(Dan Tri) – Mr. Jean-Frédéric Dufour said that watches are not investment products.
The Watches & Wonders 2024 exhibition recently took place in Geneva, Switzerland.
This year, 54 brands presented their latest products, including famous manufacturers such as Patek Philippe, Rolex, Cartier, Piaget, TAG Heuer…
A week before the show, Rolex chief executive officer (CEO) and president of Watches & Wonders – Jean-Frédéric Dufour – sat down with Swiss newspaper NZZ to discuss the current state of the watch industry.
In the interview, Jean-Frédéric predicted that 2024 will be a challenging year for watch manufacturers.
Rolex CEO and president of the `Watches & Wonders` exhibition Jean-Frédéric Dufour (Photo: NZZ, Rolex Magazine).
He pointed to rising gold prices, the economic impact on the Swiss franc and political instability as the main factors behind the apparent market volatility.
`During good times, yields tend to be too high. When the market is weak, as is the case now, retailers are under pressure to cut prices. This is extremely problematic because price cuts
Swiss watch brands produce everything here, at cost in the country, Jean-Frédéric added.
2-3 years ago, luxury watches were seen as an investment, instead of a dream.
Jean-Frédéric Dufour doesn’t want people to think of watches as an investment (Photo: Rolex).
When the US Federal Reserve (Fed) increased interest rates from May 2022 to July 2023, watch prices began to decrease.
When interest rates increase, people tend to save rather than spend.
After the traditional Baselworld watch fair (held every spring in the city of Basel, Switzerland) was canceled in 2019, major manufacturers came together to make their industry shine.
The Watches & Wonders founding board includes 4 members: Cartier, Patek Philippe, Richemont and Rolex.
`Watches & Wonders` is the world’s largest watch fair, taking place every spring in Geneva (Photo: WatchPro).
The President of Watches & Wonders said that the main purpose of the event is for manufacturers to speak with one voice.
`That’s why once a year, we have to express ourselves in a way that makes us heard. Not as individual brands, but as the watch industry as a whole,` Jean
Many collectors and discerning enthusiasts choose to purchase Rolex watches for their exceptional craftsmanship and timeless design.
Many of the most `coveted` designs have continuously proven their ability to outperform traditional financial assets.
