Swatch CEO discusses challenges in Chinese market

The chief executive of Swiss watchmaker Swatch Group said in a newspaper interview that the Chinese market will probably be challenging until the end of the year, with customers hesitating over higher prices.

In an interview with Neue Zuercher Zeitung, Swatch CEO Nick Hayek discussed the challenges faced by the company in the Chinese market. 

Hayek noted that while China still holds great potential, consumers are currently hesitant to make purchases and have become more price-sensitive due to excessive price increases in many areas. He anticipates the Chinese market to remain difficult until the end of the year.

Potential Delisting and Family Dynamics

When asked about the possibility of delisting Swatch, Hayek expressed that while it would be beneficial for the long-term development of the company, going private would require taking on significant debt, which the company prefers to avoid. 

Hayek’s family controls 43% of Swatch’s voting shares, and his sister Nayla serves as the chair of the company.

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Succession Planning

Regarding succession planning, Hayek addressed the potential for his nephew, Marc Hayek, to eventually replace him as CEO. 

While acknowledging Marc’s commitment to the company, Hayek emphasized that the decision ultimately rests with Marc and that he and his sister would not pressure him to take over. 

Hayek highlighted Marc’s passion, good work, and alignment with the company’s corporate culture as positive factors for potential leadership.

The interview provides insight into Swatch’s strategic challenges and the family dynamics shaping its leadership succession plans amidst market uncertainties.