New watch series launched despite crisis

By I. Christianto

JAKARTA (JP): Makers of luxury, high-quality watches continue to launch their new series in Indonesia in the belief that their target market is unaffected by the devastating economic crisis.

TAG Heuer, through its local agent PT Time International, has just introduced the New 2000 Collection to Indonesia.

Asti Sukirno of Time said that Indonesia was still considered a market with vast potential.

"The customers are always out there," she said.

She said that her company, which also distributes other high- quality international watches, had many dealers throughout Indonesia, 12 of which were located in the greater Jakarta area.

"We don't have any sales targets, but we believe that wealthy people, watch lovers or collectors are still looking for new series," she said, refusing to disclose sales figures from previous years.

The new TAG Heuer series comes in three versions: Sport, Classic and Exclusive. Prices range from between Rp 4.69 million and Rp 6 million each, depending on the model.

Swatch and Titoni previously launched new series of their luxury watches.

Prices of imported luxuries have soared since the rupiah plunged against the U.S. dollar. Last week, the rupiah was near the 8,000 level against the U.S. dollar, better than in mid-June of this year when it plunged to as low as 16,000. In July 1997, the rupiah traded at about 2,500 to the dollar.

Demo scare

Liliana, a shopkeeper in Plaza Indonesia shopping center in Central Jakarta, said that she believed watch sales could grow despite the financial crisis.

"What affected us were the student demonstrations which often took place near Plaza Indonesia. The protests usually prompted security forces to block streets leading to the area. How could anyone go shopping in such a situation?" she said.

She said that her shop, Watch Boutique, had seen a 70 percent drop in sales during October and November.

"However, our sales climbed a bit higher when the rupiah began to strengthen against the U.S. dollar," she added.

According to Liliana, the prices of exclusive watches usually depend on the rate of the dollar.

"Because we quote the prices of our watches in rupiah, the prices will change following a change in the exchange rate."

She said that while the purchasing power of Indonesians had decreased, foreigners still continued to buy watches from her shop.

"I think they (foreigners) were mostly from African countries, while the second largest group was from Japan," Liliana said.

Ayung, from the Raymond Weil store in Plaza Senayan, said that sales at his shop had dropped by 50 percent recently.

"We had fewer visitors in October and November. However, the current dip in sales was due mainly to security matters, not the weakening purchasing power of Indonesians," he said.

Eva, from the New 21 shop in Blok-M Plaza, said that she would prefer to close her store if there was a riot near the shopping center. She had another shop in Mal Lippo Karawaci that was looted during the May riots.

"So far, I am confident that Blok-M is a safe area. For now, I have my regular customers. There was a 30 percent drop in sales in October and November, but the situation is still normal," she said.

While many watch dealers continue to survive this period of economic crisis and uncertain security, some dealers have succumbed to the pressures, shutting their doors and declaring bankruptcy.

The Hour Glass, a Singapore-based retailer and wholesaler of timepieces and jewelry, closed its outlet in Plaza Indonesia.

An executive of the defunct shop said that the Hour Glass quit operations in Indonesia in July for undisclosed reasons.