Talk of a slowdown in Chinese luxury consumption has been well documented. On the face of it, exports of Swiss watches to China have fallen significantly in recent years. But while the figures are technically accurate, there is mounting evidence that they tell only one side of the story.

When the Fédération de l’Industrie Horlogère Suisse (FH) published its annual report detailing world distribution of Swiss watches in 2013, it confirmed that exports to China were down 12.5 per cent on 2012. But closer analysis of the figures – and the results of a new report into Chinese interest in luxury watches – suggests China is still driving watch industry growth and will continue to lead the way for years to come.

Analysts say exports to mainland China have decreased because Chinese consumers are more aware that domestic prices are pushed sky-high by VAT, import duties and China’s 20 per cent consumption tax on watches costing more than Y10,000 ($1,600). Another reason is that the Chinese are travelling more, visiting countries where watches are considerably cheaper.