Singapore and the watch markets of South-East Asia

by
Patek Philippe Boutique at ION Orchard shopping mall in Singapore. Operated by watch retailer Cortina Watch and officially opened in April 2016, this is the largest Patek Philippe Boutique in South-East Asia. Photo: © Cortina Watch / Patek Philippe.

Patek Philippe Boutique at ION Orchard shopping mall in Singapore. Operated by watch retailer Cortina Watch and officially opened in April 2016, this is the largest Patek Philippe Boutique in South-East Asia. Photo: © Cortina Watch / Patek Philippe.

In the Far East, namely South-East Asia in particular, it comes as no surprise that Singapore is often the first choice when it comes to the establishment of a watch brand’s boutique in this region.

German watch brand and Manufacture Glashütte Original for instance, opened its first South-East Asian boutique in Singapore towards the end of 2015. This is the brand’s flagship boutique for South-East Asia and it is located at The Shoppes at Marina Bay Sands.

It is also a city where some of the largest watch brand boutiques are located. For example, Patek Philippe’s largest boutique with a floor area of 2,800 square feet (260.1 square metres) is at the ION Orchard shopping mall.

Moreover, quite a few brands have more than one boutique in Singapore. Audemars Piguet is one fine example, with two boutiques on this island city – one located at Liat Towers and the other in The Shoppes at Marina Bay Sands.

Franck Muller officially launched its new boutique in Singapore. Located at Isetan, Wisma Atria, the brand, at the time of writing, has two boutiques in this city.

Audemars Piguet’s flagship boutique in Singapore is located at Liat Towers. It has a ten-metre tall façade that covering three storeys of the building. The boutique was officially re-opened in May 2016. Photo: © Audemars Piguet.

Audemars Piguet’s flagship boutique in Singapore is located at Liat Towers. It has a ten-metre tall façade covering three storeys of the building. The boutique was officially re-opened in May 2016. Photo: © Audemars Piguet.

Why is Singapore so important for the watch brands? The reason is simple: Singapore is the only country in South-East Asia that ranks among the top ten destinations, notably for Swiss watch exports.

In fact, Singapore is one of the four East Asian countries among the top 10 Swiss watch export destinations.

The other three (in North-East Asia) being Hong Kong which is the world’s top market for Swiss watch exports (importing CHF3.18 billion worth in 2015), China (CHF1.34 billion) and Japan, the fifth largest export market for Swiss watches (CHF1.31 billion in 2015), according to the Federation of the Swiss Watch Industry FH.

Singapore is the only South-East Asian country among the top 10 Swiss watch export destinations.

Singapore is the only South-East Asian country among the top 10 Swiss watch export destinations.

What are the countries of South-East Asia?

South-East Asia is made up of 11 countries, namely: Brunei, Cambodia, Timor-Leste or East Timor, Indonesia, Laos (Lao People’s Democratic Republic or LPDR), Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam.

With the human population of around 624 million, South-East Asia is collectively home to 8.3% of the world’s population totalling 7.6 billion.

What’s more, South-East Asia offers growth opportunities as its international economic significance is rising thanks to its developing countries.

Thailand and Malaysia for example, are among the top 30 Swiss watch export markets in South-East Asia.

Singapore is the ninth largest market for Swiss watch exports which was valued at CHF1.13 billion in 2015, leading to a market share of around 5.3%. One must also understand that many of the Swiss watches are subsequently re-exported to its neighbouring South-East Asian countries.

Singapore is the only South-East Asian country among the top 10 Swiss watch export destinations.

Singapore is the only South-East Asian country among the top 10 Swiss watch export destinations.

Though Singapore is a small country with the human population of 5.5 million compared to Indonesia’s 254 million, Vietnam’s 90.7 million and Thailand’s 67.7 million, it is still an ideal location for the largest Patek Philippe boutique.

This is because Singapore is the most affluent country in the region, with its GDP per capita of US$56,285 in 2014, according to The World Bank.

Coupled with the boutique’s location along Singapore’s shopping belt, this theoretically translates to higher opportunities with well-heeled locals and tourists.

Moreover, Singapore is well-regarded as a watch hub for collectors in the region.

Related articles on timewerke.com that may be of interest include:
i. Franck Muller Boutique: A second home?
ii. Glashütte Original strengthens its Asian presence.

The importance of Asia for Swiss Watch Exports

by
A lady admiring Patek Philippe timepieces on display in Singapore. Photo: © Cortina Watch / Patek Philippe. 2016.

Admiring Patek Philippe timepieces on display in Singapore. Photo: © Cortina Watch / Patek Philippe. 2016.

How large is the market in Asia for Swiss watch brands?

Well, there is no doubting Asia’s importance as it is the biggest market for Swiss watch exporters, accounting for half of such exports in terms of value.

In 2015, the total value of Swiss watch exports worldwide was CHF21.5 billion, representing a decline of 3.3%, according to the Federation of the Swiss Watch Industry FH

The value of Swiss watch exports to Asia in 2015 was therefore around CHF10.8 billion.

Between January 2016 and May 2016, the total value of Swiss watch exports amounted to CHF7.83 billion, representing a decline of 9.5% as compared with the corresponding period in 2015 (January 2015 to May 2015).

With Asia’s 50% market share, its imports of Swiss watches totalled CHF3.92 billion.

Europe took up a third of the value of Swiss watch exports (CHF2.6 billion) while that of North America was around 12% (CHF934.1 million).

Half of total Swiss watch exports end up mostly on the wrists of people living in Asia. Perhaps it also implies that half of all Jaeger-LeCoultre Reverso timepieces are bought in Asia? Photo: © Jaeger-LeCoultre Singapore. 2016

Half of total Swiss watch exports end up mostly on the wrists of people living in Asia. Perhaps it also implies that half of all Jaeger-LeCoultre Reverso timepieces are bought in Asia? Photo: © Jaeger-LeCoultre Singapore. 2016

The Federation of the Swiss Watch Industry FH breaks Asia down into three main regions, comprising the Middle East, Far East and “Other Asian countries”.

Which part of Asia contributed most to Swiss watch exports? The answer is the Far East, which accounted for CHF2.43 billion or around 31% of the total value of Swiss watch exports. ,

The Middle East provided CHF847.3 million or 10.8% of the total value and the balance of around CHF646.7 million or 8.3% was from other Asian countries.

Exactly what countries are classified as being in the “Far East” and the “Middle East”?

It may be deemed an archaic term and considered vague but the “Far East”, generally speaking, refers to East Asia. These include countries like China, eastern Russia, China, Japan, Korea and South-East Asia. India is part of South Asia.

Singapore is among the important Asian markets for Swiss watch brands and it is part of South-East Asia. This explains why many brands locate their boutiques in this market.

Such brands include Hublot, which has operated its boutique in Singapore since 2010 and Glashütte Original which officially launched its boutique in May 2016, its first boutique in South-East Asia.

Hublot by The Hour Glass. This Hublot boutique located at The Shoppes at Marina Bay Sands in Singapore is operated by luxury retailer The Hour Glass, a company listed on the Singapore Exchange. The marquee of this Hublot boutique is extremely tall. From the floor base to its top, the overall height of the store’s façade is 17 metres which is about the height of a typical three-storey landed residential property in Singapore. Photo: © The Hour Glass.

Hublot by The Hour Glass. This Hublot boutique located at The Shoppes at Marina Bay Sands in Singapore is operated by luxury retailer The Hour Glass, a company listed on the Singapore Exchange. The marquee of this Hublot boutique is extremely tall. From the floor base to its top, the overall height of the store’s façade is 17 metres which is about the height of a typical three-storey landed residential property in Singapore. Photo: © The Hour Glass.

The Middle East, once known as the Near East, refers to the lands around the southern and eastern shores of the Mediterranean Sea, extending from Morocco to the Arabian Peninsula and Iran, and sometimes beyond, depending on certain definitions, as noted in the Encyclopaedia Brittanica.

The Oxford English Dictionary defines the Middle East as an area of South-West Asia and northern Africa, stretching from the Mediterranean to Pakistan and including the Arabian Peninsula.

Middle Eastern countries generally include Cyprus, Egypt, Qatar, Saudi Arabia, the United Arab Emirates, Bahrain, Oman, Iran, Iraq, Israel, Jordan, Kuwait, Lebanon, Palestine, Syria, Turkey and Yemen.