Watch brands test new tactics to push Chinese purchases

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China's increasing consumerism has made the country one of the world's top watch markets. However, most Chinese are buying their watches overseas to avoid the 11-20 percent import tariff on watches and the 20 percent consumption tax on luxury goods.

So what are international watch brands doing to encourage local purchases?

Swiss watch brand Roger Dubuis this year collaborated with Luxury car brand Lamborghini, hoping that the sports car’s big name in China can help sell more watches.

“We are trying to get customers here as much as possible. That’s why you see the beauty of Lamborghini associated with Roger Dubuis, because Lamborghini today is a very hot brand for the Chinese, especially this young generation,” said Jean-Marc Pontroue, CEO of Roger Dubuis.

The limited edition of Roger Dubuis Excalibur Spider Pirelli Double Flying Tourbillon watch from the watchmaker’s collaboration with Lamborghini. /VCG Photo

Roger Dubuis is also trying out global uniform pricing for most of its products.

“Our customers are travelling all over the world, as long as we have too much of a price difference between two cities, then we have a dying business when the currency (rates) are too high,” Pontroue said.

Watch brand TAG Heuer is using the same tactic – adjusting retail prices in China to the same level as anywhere else in the world, even when it means lower margins.

TAG Heuer stores even provide customers a price list of each product in different countries around the world, hoping this transparency will ease customers' concern of paying more in China.

Swiss watch brand TAG Heuer has chosen Li Yifeng, a 30-year-old Chinese singer & actor, also a popular star among young people, as one of its celebrity faces since 2015. /VCG Photo

David Geng, a watch collector and founder of a watch review website, said offering Chinese buyers flat prices is a fair play by Roger Dubuis and TAG Heuer.

However, most global watch makers are keeping prices higher in China, because they don’t want the huge Chinese market to weigh over the rest of the world and end up hurting their global image, according to Geng.

“Chinese people purchase 60 to 70 percent of all Swiss watches every year. Many Swiss watch shops around the world are heavily dependent on Chinese shoppers. So if prices in China are the same as anywhere else in the world, overseas watch shops will lose business,” said Geng.