The business landscapes in Hong Kong and the Swiss watch industry are undergoing significant shifts, with the CEOs of Jardine Matheson and Breitling providing insights into their respective strategies.
Jardine Matheson, a leading investment company based in Hong Kong, is embarking on a transformation from an owner-operator to an active capital manager. The company's new CEO, Lincoln Pan, made these revelations during an exclusive interview with Bloomberg's David Ingles at the Asian Financial Forum in Hong Kong.
Meanwhile, in the Swiss watch industry, Breitling AG's CEO, Georges Kern, is maintaining a bullish stance on the company's biggest market, the US, despite ongoing tariff uncertainties. In an interview with Reuters, Kern expressed his optimism that the US will cut tariffs on Swiss watches.
According to the Bloomberg article, Pan acknowledged that the company's shift from an owner-operator to an active capital manager would involve shedding some of its businesses, such as its 50% stake in Dairy Farm International Holdings Ltd. He further stated that the company would focus on its core businesses, including property and motor services, and would expand its role as a financial investor.
In the Reuters interview, Kern emphasized that the US remains a crucial market for Breitling, accounting for over 30% of its sales. He acknowledged that the ongoing tariff dispute between the US and China has affected sales, but expressed confidence that the tariffs on Swiss watches would be lifted. Kern added that the company's sales in the US have been resilient, with growth in the single digits.
The tariffs, which were imposed in response to China's intellectual property practices, have affected various industries, including the Swiss watch industry. The Swiss government, along with industry associations, have been lobbying for the tariffs to be removed. Kern's optimism could be a reflection of these efforts.
Jardine Matheson's transformation comes at a time when Hong Kong's business environment is undergoing significant changes. The city's economy has been impacted by the ongoing protests, as well as the US-China trade war. The company's decision to focus on its core businesses and expand its role as a financial investor could help it navigate these challenges.
The Swiss watch industry, too, is facing challenges, with the tariffs being just one of them. The industry has been grappling with declining sales, especially in traditional markets like Europe and the US. The industry's reliance on these markets, coupled with the ongoing uncertainty regarding tariffs, has led to concerns about its future growth prospects.
Despite these challenges, both Jardine Matheson and Breitling's CEOs remain optimistic about their businesses' future prospects. Jardine Matheson's decision to transform its business model could help it capitalize on new opportunities, while Breitling's confidence in the US market could pay off if the tariffs are indeed lifted.
In conclusion, the business landscapes in Hong Kong and the Swiss watch industry are undergoing significant changes. Jardine Matheson's decision to transform its business model and Breitling's optimism regarding tariff cuts are two developments that could shape the future of these industries.
Sources:
Bloomberg: Jardine Matheson's New CEO Discusses Business Transformation (https://www.bloomberg.com/news/articles/2020-02-12/jardine-matheson-s-pan-says-company-will-shift-to-active-capital-manager)
Reuters: Breitling CEO Expects Trump to Cut Tariffs on Swiss Watches (https://www.reuters.com/article/us-usa-trade-swisswatch-idUSKBN20H1Z0)