Luxury takes the limelight at Baselworld

Despite promises of a "glamorous year" ahead, industry experts fear the global credit crunch Keystone

The city of Basel will sparkle as the global capital of the luxury goods industry over the next week with its annual international watch and jewellery trade fair.

But a number of clouds have appeared on the horizon of the Swiss watchmaking sector, which has gone from strength to strength over the past few years.

Not least of these is the global impact of the subprime mortgage crisis in the United States.

The Swiss at the fair – Baselworld – say that 2008 promises to be “a year of glamour” but the president of the event’s exhibitors’ committee, Jacques Duchêne, urges caution about the situation after that.

“It is essential that we remain objective and pragmatic. Our industry too could be undermined at any time. The question we should be asking ourselves is: recession or no recession?”

Duchêne described export figures in the Swiss watchmaking sector for the first two months of the year as “encouraging”. The total value was SFr2.54 billion ($2.5 billion) up 20.6 per cent over the comparable period last year.

Complex problems

But he said the credit crunch was far from over and could bring complex problems in its wake.

“The current situation could become difficult for both our suppliers and our customers. On the one hand our businesses are growing and therefore requiring greater and greater levels of investment. On the other, we are at the mercy of a crisis situation.”

Another issue highlighted by Duchêne was the never-ending problem of imitations and forgeries.

In January more than 90,000 Swiss watches were confiscated in Mexico City as part of a crackdown instigated by the Federation of the Swiss Watch Industry.

“The police also seized weapons and drugs, underlining once more the direct involvement of the organised crime and industrial production in the forgery of goods,” he said.

Internet and forgeries

Duchêne also highlighted the links between the internet and the trade in forgeries.

He said online trade continued to grow at about 30 per cent annually and the sale of forgeries via the internet was following the same growth pattern.

He noted that the Swiss watch federation was responsible for eliminating more than 35,000 adverts on a range of different platforms last year.

But only about 30 per cent of websites specialising in the sale of forgeries were actually closed down following a court order requiring them to do so.

“The problem of anonymity on the internet makes it difficult to identify the culprits. It is therefore important to hold responsible those who are technically involved, such as service providers, domain administrators and blog operators as well,” he argued.

swissinfo, Robert Brookes in Basel

Baselworld 2008 and Switzerland

A total of 2,087 exhibitors from 45 countries are showing their latest creations at the trade fair, which runs April 3 – 10.

353 watch brands and 544 jewellery brands will be showcasing what they have to offer.

Switzerland has 458 exhibitors (21.9% of total number) occupying 53,900 square metres (46.4% of total space).

The Swiss exported watches and movements valued at almost SFr16 billion in 2007, an increase of 16.2% compared with 2006.

The fair is expected to attract around 100,000 visitors and 2,500 journalists.

Geneva is hosting its own prestigious watch show (Salon International de la Haute Horlogerie) from April 7-12.

What the Swiss say they have to offer this year

Original chronographs account for many of this year’s new models.

These include chronographs for ladies displaying some innovative mechanical functions.

There are also large cases, featuring a blend of high-tech materials and pink gold.

2008 also marks the return of flamboyant jewellery-settings, some of which transform men’s watches into pieces of jewellery.