New luxury watch brand

"We have seen great potential in Thailand, with its strong consumer base and a population that loves luxury items. On top of that, the country has millions of tourists from all over the world," said Bernhard Mayer, chairman of QI Services (Thailand), which last year acquired Cimier.

"There is a growing number of watch collectors in Thailand. I know a few collectors who have more than 20 different timepieces at this moment," he said.

Thailand will be Cimier's first market in Southeast Asia and its second in Asia, after Japan.

Cimier timepieces have price tags ranging from US$500 to $4,500 (Bt16,500 to Bt149,000), and QI Services is in the process of appointing a local distributor.

"Thailand is the No-1 market on our list in Southeast Asia, but we're also looking at Malaysia and Singapore," said Mayer, who is also chairman of German minting and numismatics firm Mayer Mint.

He said QI was negotiating with three or four potential distributors that already distributed luxury watches and jewellery products in the Thai market. Negotiations will be completed this year.

"Cimier's main market is Europe, and the essential part of its European sales is in Eastern Europe, including Russia, Ukraine and Poland. Consumers in Eastern Europe have a strong desire to show off their wealth, and it is good for them to own something prestigious and show that they can afford it," he said.

However, growth in the European luxury-products sector has slowed to only 1-2 per cent a year, and when adjusted for inflation it is actually shrinking, Mayer said.

Cimier recorded 100-per-cent growth in Japan last year, and 50-per-cent growth is expected this year. As well, it now sells in the Middle East.

The brand expects mid- to long-term growth of 10-20 per cent around the world over the next five years, Mayer said. Asia is expected to overtake Europe in terms of customers' buying power and economic strength.

"In Asia, you have real growth. I have seen big potential in Thailand despite your political uncertainty and cautious consumers. These problems will be not last forever. We're quite optimistic that Thailand will enjoy prosperity and a peaceful future," Mayer said.

Kwanchai Rungfapaisarn

The Nation