Market unaffected by rising prices and global slowdown, says industry chief
By Michelle Tay
SHOWCASE: Mr Tay is planning a big watch fair here next year. — PHOTO: ALAN LIM
THE boss of Sincere Watch believes Singapore can turn itself into a prime place where the world’s rich can buy fancy watches.
Mr Tay Liam Wee, who has just taken the helm at the Singapore Clock and Watch Trade Association (SCWTA), said Singapore is already Asia’s third-largest importer of watches and the world’s fourth-fastest growing market for Swiss watches.
He wants to capitalise on these positions to turn the country into ‘a global watch hub, where connoisseurs and enthusiasts alike will continue to be fascinated by this industry.’
Despite the steep prices - fine watches can cost $2,000 to $80,000 - and the slowing world economy, growth in the watch industry is not unwinding.
Far from it, in fact. Swiss watch imports in the first six months of the year grew 45 per cent from a year earlier.
Mr Tay, 49, said Singapore’s luxury timepiece sector had seen steady growth over the past five years and would continue ticking along for the next five years.
The watch industry turned over $2.9 billion last year, up from $2 billion in 2003.
Mr Tay said this growth was ‘in sync with that of the Swiss watch industry’ and ‘will continue at 10 per cent to 15 per cent year-on-year’.
He added that even as watches were getting more expensive, people were still buying them.
He attributed this trend to rising wealth in Asia and the increasing number of connoisseurs in the region.
And he plans to focus on growing the latter even more during his two-year term as president of SCWTA, which has 180 members, through a large-scale watch fair here next year.
‘What is important is the industry, as a whole, is able to hold something on a national scale and make it into an iconic, international show,’ he said.
He also spoke about the sale of Sincere to Hong Kong watch company Peace Mark Holdings in April.
In his first interview with The Straits Times since the takeover, Mr Tay said yesterday he backed the ‘full acquisition’ of Sincere because both companies had a common goal to break into the China market.
With groups like Swatch, Richemont and LVMH accounting for 85 per cent of Swiss watch exports, Mr Tay said ’size, as well as financial and marketing clout’, was needed to penetrate China in ‘a meaningful and significant way’.
The takeover was completed at $530 million, or $2.564 per share.
Peace Mark has obtained acceptances of more than 90 per cent and is in the final stages of delisting Sincere from the Singapore Exchange.
Mr Tay has retained his role as group managing director of Sincere while taking up new responsibilities to ‘look at the luxury sector within the Peace Mark group’.
This segment comprised about 30 per cent of total group revenue at Peace Mark last year, but the acquisition of Sincere meant that portion would grow to about 60 per cent and become the main driver of the group’s business.
As for the conglomerate’s strategy, Mr Tay revealed: ‘The reason we’re making all these strategic moves is to create the largest watch company coming out from Asia.
‘As the largest watch company emerging from Asia, we can be more effective and efficient in the way we penetrate new markets.’
