Connect with us

Hi, what are you looking for?

FAB FIVE LIFESTYLE

MenStyle

Global Consumer Interest for Luxury Watches Grew +3.3% Fueled by BRIC markets

For the 9th consecutive year, Digital Luxury Group releases the WorldWatchReport™, the leading market research in the luxury watch industry. After the release of the Haute Horlogerie Preview (18 brands) of the report in January at SIHH, the complete 2013 edition (62 brands, 20 markets) is now available.

Global Consumer interest for luxury watches grew +3.3%, led by BRIC markets (+33.0%)

Global demand growth was fueled by BRIC Markets with the highest year-to-year increases in China (+36.0%), Brazil (+29.4%), Russia (+28.5%) and India (+19.7%). Early signs of demand decline were recorded mostly in historically established and mature markets: the United States (-11.6%), Europe (-8.3%) and Japan (-13.6%).

“The numbers confirm a shift in demand growth drivers which started several years ago and which shapes the whole industry further towards localization. From product design, brand positioning to in-store service, luxury watch brands need to quickly adapt to client preferences from emerging markets to grow further”, explains Florent Bondoux, Head of Strategy & Intelligence at Digital Luxury Group. There are plenty of consumers still interested in luxury watches and sites like https://www.lidowatchclub.com/ provide a vast variety of watches, it’s just that consumers want the newest and coolest technology on their wrists so companies now need to come up with innovative designs to meet the needs of consumers.

cartier_pure_gold_luxury_watch_Toffsmen

China consolidates its leadership position with 1/4 of global demand

Ahead of the United States for the second year in a row, China’s appetite for high-end timepieces grew by +36.0% in 2012 despite reported retail slowdown. Biggest brands Rolex (#2, +97.8%), Cartier (#4, +71.6%) and Omega (#1, +70.4%) grew the fastest, notably due to higher exposure from inner-China regions where the fastest growth rates were observed. Those in search of a replacement rolex leather band a little more suited to their tastes may want to check out Horus watch straps.

According to Pablo Mauron, Digital Luxury Group’s General Manager China, “Despite a reported slowdown in the region often attributed to the reluctance towards government gifting, we can’t realistically forecast a significant market decrease in the mid-term as the fast growing middle-class, quick wealth creation from tier 2 and 3 cities as well as increasingly important travel spending are strong drivers that are here to stay.”

Swatch Group overperforms luxury conglomerates*

Strong performances from Omega, Longines and Rado in rapidly growing BRIC markets substantially contributed to Swatch Group performance figures. Conversely, LVMH and Kering (ex.PPR) watch brands analyzed in the report posted average declines of -4.4% and -10.6% respectively. Richemont Group remains close to the global positive trend (+2.1%).

“Haute Horlogerie” and “Watch and Jewelry” categories are growing the fastest

Confirming results highlighted in January at SIHH, Haute Horlogerie brands – notably composed of Patek Philippe (#10, +16.7%), Vacheron Constantin (#19, +31.5%) and Breguet (#24, +8.6%) – were the fastest growing brands (+10.1%), followed by the Watch and Jewelry category growing by +7.7%, thanks to solid performances from Cartier (#3, +11.6%) and Piaget (#18, +12.94%). Exposure to Asia played a crucial role in fueling categories’ growth with 44% and 46% of demand respectively.

Gap between industry leaders Rolex and Omega narrows further

A sheer 2 percentage points in global demand separates the two watch industry powerhouses from each other, versus 8.4 % in 2009. Rolex continues to lead the Global ranking thanks to its domination in mature markets such as the US and Europe as well as the Middle East and India. Omega’s continuing leadership in large, fast developing markets such as China, Russia, and Latin America has helped it gain ground on industry leader Rolex. While these two market leaders are some of 29 Different Types of Watches Every Classy Person Knows Of, some watch lovers may prefer to purchase a different watch based on their own stylistic preferences.

Digital Luxury Group’s CEO, David Sadigh explains, “Omega is on its way to create a shadow over Rolex in the long run. Major sport event sponsorships, ubiquitous celebrity endorsements and a competitive product offering are some of the key ingredients for the Swatch Group brand to grow further. This could ultimately end up in reaching Rolex’s unmatched popularity 3 to 5 years from now.”

62 Brands

Haute Horlogerie: A. Lange & Söhne, Audemars Piguet, Blancpain, Bovet, Breguet, De Bethune, Franck Muller, Girard-Perregaux, Glasshütte Original, Greubel Forsey, Jaquet Droz, Jaeger-LeCoultre, Parmigiani, Patek Philippe, Richard Mille, Roger Dubuis, Ulysse Nardin, Vacheron Constantin. Watch and Jewelry: Bulgari, Cartier, Chaumet, Chopard, Harry Winston, Jacob & Co., Piaget, Tiffany & Co., Van Cleef & Arpels. Couture: Chanel, Dior Watches, Hermès, Louis Vuitton, Ralph Lauren. Prestige: Breitling, Corum, Hublot, IWC, Omega, Panerai, Rolex, TAG Heuer, Zenith. High Range: Baume & Mercier, Bell & Ross, Bremont, Carl F. Bucherer, Concord, Ebel, Eberhard, Frédérique Constant, Graham, Longines, Louis Erard, Maurice Lacroix, Montblanc, Perrelet, Rado, Raymond Weil, Romain Jerome, Sinn, TechnoMarine, Tudor, Vulcain.

20 markets

Brazil, China, France, Germany, Hong Kong, India, Italy, Japan, Mexico, Qatar, Russia, Saudi Arabia, Singapore, Spain, Switzerland, Taiwan, Thailand, United Arab Emirates, United Kingdom, United States

* All calculations are based on the 62 brands featured in the report.

**Date range for all data is Jan-Dec. 2012 and Jan-Dec. 2011 for Y/Y evolutions

You May Also Like

The Stylist

Emily Batty, The Dalia Macphee Dress & Bike We Adore. What not to like about this dress and bike. Fashion meets the sports athlete....

Fab 5 Hollywood

Supermodel Tyra Banks (IG:  https://www.instagram.com/tyrabanks/) brought the runway to the dance floor, wearing a magnificent yellow gown by Nicole + Felicia Couture (FW 2020 Evening Collection)...