New watch series launched despite crisis<\/p>\n
By I. Christianto<\/p>\n
JAKARTA (JP): Makers of luxury, high-quality watches continue
\nto launch their new series in Indonesia in the belief that their
\ntarget market is unaffected by the devastating economic crisis.<\/p>\n
TAG Heuer, through its local agent PT Time International, has
\njust introduced the New 2000 Collection to Indonesia.<\/p>\n
Asti Sukirno of Time said that Indonesia was still considered
\na market with vast potential.<\/p>\n
\"The customers are always out there,\" she said.<\/p>\n
She said that her company, which also distributes other high-
\nquality international watches, had many dealers throughout
\nIndonesia, 12 of which were located in the greater Jakarta area.<\/p>\n
\"We don't have any sales targets, but we believe that wealthy
\npeople, watch lovers or collectors are still looking for new
\nseries,\" she said, refusing to disclose sales figures from
\nprevious years.<\/p>\n
The new TAG Heuer series comes in three versions: Sport,
\nClassic and Exclusive. Prices range from between Rp 4.69 million
\nand Rp 6 million each, depending on the model.<\/p>\n
Swatch and Titoni previously launched new series of their
\nluxury watches.<\/p>\n
Prices of imported luxuries have soared since the rupiah
\nplunged against the U.S. dollar. Last week, the rupiah was near
\nthe 8,000 level against the U.S. dollar, better than in mid-June
\nof this year when it plunged to as low as 16,000. In July 1997,
\nthe rupiah traded at about 2,500 to the dollar.<\/p>\n
Demo scare<\/p>\n
Liliana, a shopkeeper in Plaza Indonesia shopping center in
\nCentral Jakarta, said that she believed watch sales could grow
\ndespite the financial crisis.<\/p>\n
\"What affected us were the student demonstrations which often
\ntook place near Plaza Indonesia. The protests usually prompted
\nsecurity forces to block streets leading to the area. How could
\nanyone go shopping in such a situation?\" she said.<\/p>\n
She said that her shop, Watch Boutique, had seen a 70 percent
\ndrop in sales during October and November.<\/p>\n
\"However, our sales climbed a bit higher when the rupiah began
\nto strengthen against the U.S. dollar,\" she added.<\/p>\n
According to Liliana, the prices of exclusive watches usually
\ndepend on the rate of the dollar.<\/p>\n
\"Because we quote the prices of our watches in rupiah, the
\nprices will change following a change in the exchange rate.\"<\/p>\n
She said that while the purchasing power of Indonesians had
\ndecreased, foreigners still continued to buy watches from her
\nshop.<\/p>\n
\"I think they (foreigners) were mostly from African countries,
\nwhile the second largest group was from Japan,\" Liliana said.<\/p>\n
Ayung, from the Raymond Weil store in Plaza Senayan, said that
\nsales at his shop had dropped by 50 percent recently.<\/p>\n
\"We had fewer visitors in October and November. However, the
\ncurrent dip in sales was due mainly to security matters, not the
\nweakening purchasing power of Indonesians,\" he said.<\/p>\n
Eva, from the New 21 shop in Blok-M Plaza, said that she would
\nprefer to close her store if there was a riot near the shopping
\ncenter. She had another shop in Mal Lippo Karawaci that was
\nlooted during the May riots.<\/p>\n
\"So far, I am confident that Blok-M is a safe area. For now, I
\nhave my regular customers. There was a 30 percent drop in sales
\nin October and November, but the situation is still normal,\" she
\nsaid.<\/p>\n
While many watch dealers continue to survive this period of
\neconomic crisis and uncertain security, some dealers have
\nsuccumbed to the pressures, shutting their doors and declaring
\nbankruptcy.<\/p>\n
The Hour Glass, a Singapore-based retailer and wholesaler of
\ntimepieces and jewelry, closed its outlet in Plaza Indonesia.<\/p>\n
An executive of the defunct shop said that the Hour Glass quit
\noperations in Indonesia in July for undisclosed reasons.<\/p>",
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