Watchmakers warn of end of extravagance

"After several months of economic upturn, there are some positive signs," said Jacques Duchene, who heads the organising committee of Baselworld, the world's biggest watch fair.

"However, we should not be overly confident, because the global economic situation is still highly precarious," he added on the eve of the annual trade show in the northern Swiss city of Basel.

Duchene noted that the economic crisis had sparked a "return to genuine values, as well as traditional and solid principles."

"Today, consumers certainly take more responsible and considered decisions that established and even highly reputable companies must respond to," he said.

"Many of you have already mentioned this in writing or in conversation, the years of extravagance are over," he added.

In the Swiss watchmaking industry, the world's biggest and a barometer of the global sector, watches in the export price bracket of below 3,000 Swiss francs (US$2,551, €2,068), demand rose 19.8% in January.

Francois Thiebaud, who heads the committee of Swiss exhibitors, noted that there is is a "return to real value" and "designs are more classic."

Consumers are also looking at haute jewellery as an investment.

"It's better to invest in haute jewellery than in the stock market. It's viewed as a more sure investment," he said.

His German counterpart Alfred Schneider, also described forecasts for 2010 as "more muted."

"There is a slight recovery in foreign demand ... we hope that these first signs would be strengthened," he said.

Source: AFP