Swatch has become highly vulnerable to Chinese trends. Its magnitude of growth is widening one way or the other. After a great recovery in H1 and a 13% rise at CER, sales were down in H2 due to: 1/ lower demand in China; 2/ waning demand for low-priced pieces; and 3/ back orders following capacity problems. We should note that the LVMH-owned Bvlgari has rocketing sales in watch and jewellery. Therefore, Swatch needs to adjust its offer and it is well prepared to thrive again.