TV and radio advertising of luxury watches as gifts has been banned in China – a move that could potentially threaten the marketing methods of Swiss watch brands in the Far East.
China’s state news agency Xinhau announced last week that it would ban Swiss watch brands from advertising expensive watches on TV and through radio.
The move follows increasing demand from China’s president in waiting Xi Jinping to tackle luxury gifting in the professional sectors, with concern that the watches given acted as incentives on business deals.
According to Reuters, Swatch Group and Richemont Group shares fell following the announcement.
