Hong Kong: Its Economy Grows and Becomes Attractive Again for Watchmaking

Along the Tsim Sha Tsui promenade, despite the city’s intense heat, early September sees crowds of Asian tourists. Many are selfie enthusiasts, particularly on the Avenue of Stars — the highlight of the area, offering breathtaking views of the bay and Hong Kong Island. It’s also home to the city’s largest luxury mall, K11 Musea, which opened in 2019. This $2.6 billion hybrid museum-shopping complex houses the most prestigious Western brands, from Dior and Chanel to Rolex, Cartier, and Audemars Piguet, among others.

It is right here, at the foot of this luxury flagship, that the Le Brassus-based watchmaker chose to set the scene for its 150th anniversary: a miniature representation of the brand's historic headquarters, where passers-by can take photos — a symbolic fusion of Swiss savoir-faire and Hong Kong culture. Between the two shores, a traditional junk boat with black sails bearing the AP logo has been sailing slowly for days.

On the 5th floor, the AP House is celebrating its expansion — now spanning 515 square meters with a panoramic terrace, “the most beautiful in Hong Kong,” says Peggy Hu, CEO of Audemars Piguet Hong Kong and Greater China. She has invited VIP clients, top Chinese influencers, and the international press there a few hours before the festivities. She’s about to unveil new models, including a series of perpetual calendars entirely adjustable via the crown and featuring a new 38mm diameter, perfectly suited to Asian wrists. Made of steel or gold, their prices reach new heights — but according to her, that’s no obstacle. The wealthiest clients continue to buy and are ever more diverse: “In Greater China, we have more and more women who are passionate about mechanical and complicated watches — around 30%. Tonight, we’ll have quite a few of them. Five years ago, that wasn’t the case. They’re becoming true connoisseurs. They often start with a three-hand watch, then move to chronographs, perpetual calendars, and now, grand complications.”

The Deloitte Swiss Watch Industry Study 2025 – “Time Under Pressure” confirms this trend: in the most exclusive market segment, only 5% of consumers worldwide are willing to spend more than 50,000 Swiss francs — compared with 16% in China and 18% in Hong Kong.

Early signs of an Asian recovery have been stirring the watch industry since September. Data from the Federation of the Swiss Watch Industry confirm this momentum: Hong Kong (+20.6%), China (+17.8%), and Singapore (+8.3%) all posted dynamic growth. Hong Kong even outperformed China in value, with Swiss watch exports totaling CHF 155.6 million in September, compared to CHF 151.7 million for China. By contrast, Japan saw a -7% decline in demand, to CHF 158 million, and as expected, the U.S. suffered a sharp -55.6% correction following an exceptional April surge in timepieces driven by tariff announcements.

Economically, Hong Kong continues on a path of steady yet moderate growth in 2025. According to the Hong Kong Trade Development Council (HKTDC), real GDP rose 3.1% in Q2 (vs. 3.0% in Q1), driven by robust merchandise exports. The government maintains its annual growth forecast between 2% and 3%, despite global uncertainty. However, domestic consumption remains cautious: overall retail sales fell 2.6% in the first seven months of the year, reflecting lingering consumer restraint after years of restrictions.

Per capita GDP continues to climb, reaching USD 54,134 in 2024 (vs. USD 50,889 in 2023). Hong Kong also retains its position as the world’s third-largest financial center, according to the Global Financial Centres Index (September 2025). With a USD 4 trillion market capitalization, its stock exchange ranks third in Asia and sixth globally, and remains the world’s leading IPO market in the first half of 2025. The city’s strength lies in services, which account for more than 93% of its GDP.

This renewed vitality is reflected in Audemars Piguet’s strategy, whose strong presence in China, Hong Kong, Taiwan and Macau illustrates the luxury sector’s shift toward emotional and cultural experiences.

“The number of clients has been growing since we opened our two AP Houses in Hong Kong — The Henderson (600m²) and AP House K11 Musea,” explains Peggy Hu. “For the latter, we wanted to create a place offering a unique experience: a bar, a lounge, a dining room, and a spectacular terrace with the most beautiful view of Hong Kong. Our guests can enjoy a drink, discover our models, or even take part in a traditional Chinese tea ceremony led by our tea master.”

Far from the classic boutique model, AP Houses focus on intimacy rather than transactions. “We want to build more than a business relationship,” she continues. “I ask every team member to spend 30 to 60 minutes with each guest, understand their passions, and create an emotional connection. We invite them to sit, enjoy a drink, try on watches, and learn about our story. Of course, we have goals, I can’t share figures, but I can confidently say we’re meeting them.”

Since the end of travel restrictions, international tourism has been a key driver. “Before the pandemic, Hong Kong welcomed tens of millions of visitors. After a period of zero, we’re gradually returning to strong levels and hope to reach pre-pandemic numbers again,” says Hu.

She also notes a change in buying behavior: “Young clients in Greater China are very sensitive to exchange rates and pricing. After reopening, many first spent on travel. But trust is returning — and people are rediscovering the pleasure of in-store experiences.”

To adapt to this new generation, Audemars Piguet is betting on digital interaction and personalization. “In Greater China, there are seven major social media platforms — WeChat, Weibo, Red Note, etc. In Hong Kong, it’s mostly Instagram. Each must be approached with precise, relevant content.

That’s why we decided to develop a mini-program on WeChat — a project three years in the making. We officially launched it in April, just before our 150th anniversary celebrations in Shanghai. The goal was to reach all watch enthusiasts, enable appointments, and create direct interaction. It’s been formatted to adapt across all platforms because we’re only physically present in five cities in mainland China. We need to connect with all collectors. In the first month alone, we recorded 2.4 million views — an incredible success! We immediately saw increased visits to boutiques and AP Houses. Mainland collectors are younger — around 35 on average — and when they visit our AP House in Hong Kong, they take selfies and share them online. This helps us showcase our exceptional hospitality. The stunning setting of our AP House at K11 is our best sales tool.”

For its 150th anniversary celebration in Shanghai last April, Audemars Piguet emphasized interactivity. “We’ve been in China for a long time,” Hu continues. “Clients truly want deeper relationships. To that end, we trained our teams extensively to build close connections. The celebrations were designed with this spirit, and feedback was overwhelmingly positive — we received over 35,000 visitors in 15 days to our exhibition in Shanghai”

By reinventing client relationships through conviviality and culture, Hong Kong has become Audemars Piguet’s laboratory for experiential luxury in Asia. Traditionally focused on transactions and price, Asian clients are gradually embracing a more personal bond with brands. “Hong Kong customers are different — more open to these relationships. They’ve been watch connoisseurs for a long time and remain very loyal. But you have to delight them with well-adapted models, such as our Greater China Limited Edition RD2 Perpetual Calendar, or the Mini Oak, a smaller version of the iconic Royal Oak.”

With a consolidated presence in Hong Kong, Macau, and Shanghai, Audemars Piguet plans to expand the AP House concept to Beijing and to open its first street-facing concept boutique in Chengdu this November. “Our Kowloon AP House has become the model,” says Hu. “We want to replicate it in other major Chinese cities. But the goal isn’t just to sell watches — it’s to create emotion.”