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Haute Horlogerie in Mexico: the transformation of a market
With the signing of the free trade agreement with the European Union, it is clear that a new era was born for Haute Horlogerie in Mexico.
Guillermo Lira
The watch market in Mexico underwent a substantial transformation five years ago when a free trade agreement was signed with the European Union. With this agreement, watches were granted a major tax reduction, with luxury watches subject to an import tax of 3% instead of 25%. This change allowed Mexican retailers to become much more competitive, almost to the level of our American neighbors.
The difference since five years ago has been noticeable in many ways: watch retailers have renovated their stores, which are now much more sophisticated and with much more space to accommodate each brand, each with its own retail environment, and new branches of the main luxury players, such as Cartier or Swatch Group, have been opened. Many personalities and executives from the watch industry have visited Mexico, something that was almost nonexistent in the past. Mexicans now have increased product knowledge and familiarity with the watch culture, as they can now just walk into stores and see special pieces on display. Even the media has increased its coverage of the high-end watch industry, in lifestyle and business magazines as well as a specialized press. Some newspapers have devoted weekly columns to the sector, something that was unimaginable a few years ago.
Mexican companies specializing in watch retailing have been increasing in number, and become ever more similar to companies in the US and even the Caribbean, which has become famous for its duty-free prices. The clientele, with an intense lifestyle of traveling and purchasing luxury goods, represents the most affluent part of society, and now has the attractive option to buy good watches in Mexico, and even to ask for limited pieces that can be supplied by local retailers. Many new clients have been gained through the general effort of all brands to communicate and the new panorama created by jewelers and retailers.
Now collectors and clients in Mexican cities seem to value their relationship with retailers, who will take care of their watches for life, at a reasonable price. With the signing of the free trade agreement with the European Union, it is clear that a new era was born for Haute Horlogerie in Mexico. The standardization of watch sales has been increasing to the point that nobody with a certain culture and purchasing power will buy from a retailer who is not officially appointed. But most importantly, with new prices, new representatives, and new branches of the luxury watchmakers, the impact has been to create a much bigger market and a potentially even larger one over at least the next decade. Just visit a Mexican retailer and you will immediately notice the change. If you did not know the Mexican market in the past, you will not notice any difference compared to the best retailers in the world’s largest markets, in terms of atmosphere or pieces displayed in the shop windows. ■
