The Hour Glass

i see..thanks
why THG never distribute japanese watches?

Swiss watchmaking in November 2012
Slowdown in growth but a monthly record

Growth in Swiss watch exports in November was below the annual average at +4.5%. This increase nonetheless afforded the branch its highest ever monthly value of 2.2 billion francs. Growth in the sector has therefore slowed somewhat but remains at a very high level, as predicted by FH forecasts.

Gold and steel watches buoyed growth in the sector, while bimetallic products lost ground. The total number of watches exported attained a high level in November, with a significant role played here too by gold and steel. At the opposite end of the spectrum, the category of other materials registered a decline.

Recording the only downturn among the different price segments, the number of watches costing less than 200 francs (export price) fell by 2.3%. The 200-500 francs category, bouncing back slightly, recorded the steepest rise. Timepieces between 500 and 3,000 francs saw their value stagnate compared to November 2011, while those costing more than 3,000 francs set the tone for the average with an increase of 6.2%.

The trend continued to slow in Hong Kong and China. The United States meanwhile maintained the level of growth recorded in recent months. In Europe, Germany and Italy recorded sharp increases. Singapore recovered slightly following a marked lean period at the end of the summer.

Source: FHS

Although I never wear a watch but I really like this company a lot, very good fundamentals
too bad the price already run liao, miss the boat~ sad

Simply put, with a PBT of close to $70.0m a year (Note: In last FY12, THG recorded a PBT of $69.338m, translating into an EPS of $0.2331.), THG is probably one of the most profitable retail enterprises in Singapore.

THG has been appointed recently as the exclusive distributor/retailer for yet another very high-end Swiss brand - Parmigiani Fleurier - of watches for Singapore, Malaysia, Thailand and Australia. A specially orchestrated grand marketing launch dinner party was held last 6Nov12 at Esplanade, Singapore, with songs, dance, good food and wine, on top of the usual speeches and professional product presentation for 150 special guests.....
http://www.thehourglass.com/?cat=12&lang=en_us
Watch the video at the end of the page to see if you can spot anyone important. I managed to see Quek Leng Beng (Hong Leong Group's big boss) dancing with a lady, presumably his wife.

More info on Parmigiani Fleurier.....
http://www.parmigiani.ch/
It does appear that this exclusive brand has the potential to become another good profit earner for THG over time, like Hublot.

I've done a post about THG on my blog recently. Would be interested in any thoughts you guys have? Any thing I've missed or should have included?

http://saharainvesting.wordpress.com/201...our-glass/

I've been particularly impressed by management - they really do seem top quality (with the one unfortunate wonder into Gems TV...)

I am wondering how many customers THG can reach. Most people will probably only own 1 such luxury watch? How to increase the market then?

(27-01-2013, 02:03 AM)palantir Wrote: I am wondering how many customers THG can reach. Most people will probably only own 1 such luxury watch? How to increase the market then?

Hmm..any reason why should HG customer group be "most people ?"
I always thought they cater to a smaller segment ie more richer group hence only some people ...

And SG is really quite skewed in this customer segmentation. ...
If i recall correctly we have BMW being the most popular brand of car purchased.... which really shows the spending power of consumer here.

Another rising sign is that no one can walk down orchard without passing any big brand shop ... Of cos, we may not be like some western nation or even beijing / shanghai, but we seem to be doing a large catch up in recent years and this wlll help all high end local retailers in this area.

Just for info - I don't even own a watch, much less a luxury one.

A typical new Rolex watch costs approximately $10k and more. The Pateks of the world will costs a lot more.

1. As Singaporeans get exposed to more and more watch brands, the level of appreciation will go up. Rarely is a person who is hooked only purchase one luxury timepiece in his/her lifetime. Just go to the online forums to see the number of collectors and their collection. Some of these collections run into the hundred of thousands. Or better still, keep a look-out when you are walking and see if you can spot the brands of watch people are wearing. Personal observation is that the brand with the 5 matchsticks is gaining more fans.

2. With ever increasing expectation of inflation, more people are turning to hard assets for store of value. A brand-new PP, if kept in pristine condition will hold its value many year from now. There is for sure more and more collectors I come across who are keeping watches as an alternative source of asset diversification. The lack of supply for the ultra high-end piece like PP means that there is always a queue to buy it. And to get a chance to own it, you prolly need to be a VVIP at the watch retailers ie THG or Cortina.

3. The relationship that THG has built with the watchmakers is its competitive moat which is probably the hardest of any to replicate for a new entrant.

(27-01-2013, 02:03 AM)palantir Wrote: I am wondering how many customers THG can reach. Most people will probably only own 1 such luxury watch? How to increase the market then?

When someone wants to buy a rolex or PP. He will look around to get the best price. Service do very little to the consideration. As long as THG watches price stay competitive,it should do ok.