Yves Bugmann
Editorial
From a watch industry perspective, the first impression is quite favourable: both Brazilians and Paraguayans are fond of Swiss watches. Like everywhere else in the world, Swiss watchmaking enjoys an excellent reputation in Latin America, where even niche brands, normally relatively unknown to the general public, enjoy a surprisingly high profile.
Unfortunately a penchant for quality branded watches is not always synonymous with economic development, be it in Paraguay or in Brazil, even though the latter country seems to be well on its way to becoming a genuine world economic power in the medium term. For the time being, only a small minority of the population is benefiting from this nascent growth. And as we know, poverty, even relative, combined with a partiality for luxury products, inevitably opens the door to a scourge that is regrettably well known to Swiss watch manufacturers: counterfeiting.
Widespread in Brazil and Paraguay, counterfeiting appears to leave the authorities largely unmoved. In Brazil for example there are shopping centres that specialise in the sale of fake goods. Watches are among the most prominent products to feature in these markets, which are often in Asian hands. Sold openly, they number in the thousands and include all well-known Swiss brands. Fake luxury bags and pirated DVDs are also much in evidence. According to information obtained by FH investigators, it is largely resellers who obtain supplies on these markets located in the heart of large Brazilian cities in order to meet demand in the provinces. In Paraguay, on the other hand, the supply chain has yet to reach the same degree of perfection: sales are often made directly by street sellers to consumers. A point both countries have in common however is that the situation is very worrying.
It is in this difficult context that the FH will shortly be carrying out new anti-counterfeiting operations in Latin America. Previous interventions have demonstrated that we must not throw in the towel, even though the situation may at first sight seem highly compromised. This impression is strengthened by the fact that the authorities seem scarcely interested in the fight against counterfeiting and that policemen, albeit present in numbers in and around the «fake» shopping centres, prefer to direct traffic than take action against this illegal trade. Targeted strikes are however possible; all it needs is for a private sector intermediary to take the initiative. The FH for example, whose federating role also lends more weight to actions and, at the same time, allows costs to be shared among the brands involved.
The next anti-counterfeiting actions organised by the FH will take place in Brazil with a very clear objective: to seize thousands of counterfeit Swiss watches and see criminal sanctions enforced against the sellers.
