At the time of writing, the Coronavirus outbreak has already infected more than 70,500 people in China and resulted in 1770 deaths. It’s forced the quarantine of more than 50 million people in China and resulted in travel and visa restrictions to more than 70 countries. If that’s not bad enough, a new article in The New York Times suggests the disease might also plunge the watch industry into crisis. Here’s why … 1. Luxury retail worldwide is massively dependent on Chinese shoppers The article describes how, right now, the luxury shopping precincts of London, Paris, Dubai and Hong Kong are deserted. That’s because the influx of Chinese tourists has suddenly been cut off. This isn’t good news for watch brands, as the NYT explains. The investment bank Jefferies estimates that Chinese buyers accounted for 40 per cent of the 281 billion euros, or $US305 billion, spent on luxury goods globally last year, and drove 80 per cent of the past year’s sales growth in the sector, making them the fastest-growing luxury shopper demographic in the world. François-Henri Pinault is the chief executive of Kering, the international luxury group whose stable includes Gucci, Yves Saint Laurent and Balenciaga as well…
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