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Strategy Briefing

Is Time Running Out For Traditional Watches?

55 pages, Apr 2016

US$1,325

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About This Report

New Report Guarantee

If you purchase a report that is updated in the next 60 days, we will send you the new edition and data extract FREE!

Operating conditions for watchmakers have never been more challenging. On one side, economic and currency volatility in key markets is hampering demand. On the other, a new generation of wearable electronics is ramping up competition. Formerly conservative watchmakers are rebooting strategies to etch out growth, while modernisers eye innovation as the way out of trouble. With many young people shunning traditional watches, the stakes are high. Can the industry survive and prosper?

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Overview

Why buy this report?

Gain competitive intelligence about market leaders. Track key industry trends, opportunities and threats. Inform your marketing, brand, strategy and market development, sales and supply functions.

Swiss watch exports fall

Swiss-made watches are emblematic of the industry and a proxy of its health. Currency volatility, coupled with a loss of traction in formerly fast growing emerging markets, has triggered a marked slowdown in demand.

Hong Kong crisis

Once a lynchpin of growth, Hong Kong is forecast to be the industry’s weakest performing market to 2020. There is a regional power shift in Asia, as shoppers and retailers look for alternative growth hubs, most visibly in Japan.

Mass brand opportunity

Cautious spending by a once cash-flushed middle class in key markets such as China is opening up new opportunities for mid-priced brands to seize market share from higher priced rivals. The big fashion houses are also ramping up the competition among mid-priced brands.

Watches revolution

Wearable electronics are booming and are set to be a major disruptive force in the watch battleground, especially amongst younger consumers. The trend is pushing growing numbers of traditional watchmakers into uncharted waters.

Wearable electronics surge

By 2020, global sales of wearable electronics are forecast to be higher than each of the mechanical, analogue and digital watch categories in value terms. The category is emerging as a pivotal battleground for mid-priced global brands.

Internet boom

Sales of watches through internet platforms are on course to double between 2015 and 2020, reaching some US$10 billion.

India goes big on basics

India is emerging as a powerful growth market for low price brands, with annual sales of basic watches on course to exceed US$1 billion by 2019.

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Introduction

Scope

Key findings

Industry Headwinds

The battleground heats up as operating conditions get tougher

Loss of Chinese momentum delays a transfer of revenue power

The good times stall in formerly fast growing watches markets

The Hong Kong crisis triggers an exodus of Chinese shoppers

Currency volatility is a rollercoaster ride for leading global brands

Consumers tighten belts in formerly lynchpin watches markets

Luxury brands feel the force of China’s ostentation clampdown

Electronic wearables throw down the gauntlet

A generational shift in the perception of watches

Category Dynamics

Mechanical watches: Over-dependence on male consumers

Quartz analogue watches: Accessible prices help drive up sales

Quartz digital watches: E merging markets are driving growth

Wearable electronics: Growing in profile but success is not a given

Stakes are high as traditional watches face down smartwatches

Luxury Under Fire

Rising production costs drive up prices for Swiss-made brands

Men’s luxury timepieces need to unlock new markets

Women’s luxury timepieces face sternest challenges to date

Richemont: Western markets no longer a buffer for Asian losses

Swatch Group: Visibility at Rio Olympics could give a boost

Rolex SA: Traditionalists battle with new generation of modernisers

LVMH: Weak Euro flatters financial performance

The Battle for the Middle Ground

Basic watches eye opportunity with the emerging middle class

Mid-priced brands seize ground in the fashion stakes

Fossil Group: Seeking to up the ante in wearable electronics

Swatch Group: Targeting the middle ground, especially in China

Seiko Holdings: Betting on higher priced watches

Citizen Holdings: Geographical mix pays off, rise in market share

Timex Group: New connected devices to resuscitate growth

Casio: Better late than never in entering the smartwatch arena

A Shifting Retail Landscape

Specialist retailers face up to the burgeoning power of the internet

The internet challenges conservatism of old-school watchmakers

Specialists will struggle as shopping mall sales fall in key markets

Fashion retailers ramp up competition in the middle ground

Department stores face uncertain future as footfall slows

Opportunities

The enduring brand power of “Made in Switzerland”

Japanese watchmakers leverage newfound cachet in heritage

Leading watchmakers need to harness the digital revolution

Asia Pacific remains a power base for incremental growth

The emerging stars of southeast Asia

Key Takeaways

An uncertain outlook for traditional watches as headwinds build

Mapping shifts in geographical revenue power to 2020

Shaking up the watches industry for better or for worse

Report Definitions

Data parameters and report definitions (1)

Product category definitions (2)

Product category definitions (3)

Why buy this report?

Want to find out more about this report?

Request more information

Megatrends

Strategy Briefing

Is Time Running Out For Traditional Watches?

New Report Guarantee

About This Report

New Report Guarantee

Overview

Why buy this report?

Swiss watch exports fall

Hong Kong crisis

Mass brand opportunity

Watches revolution

Wearable electronics surge

Internet boom

India goes big on basics

Want to find out more about this report?

Table of Contents

Introduction

Scope

Key findings

Industry Headwinds

The battleground heats up as operating conditions get tougher

Loss of Chinese momentum delays a transfer of revenue power

The good times stall in formerly fast growing watches markets

The Hong Kong crisis triggers an exodus of Chinese shoppers

Currency volatility is a rollercoaster ride for leading global brands

Consumers tighten belts in formerly lynchpin watches markets

Luxury brands feel the force of China’s ostentation clampdown

Electronic wearables throw down the gauntlet

A generational shift in the perception of watches

Category Dynamics

Mechanical watches: Over-dependence on male consumers

Quartz analogue watches: Accessible prices help drive up sales

Quartz digital watches: E merging markets are driving growth

Wearable electronics: Growing in profile but success is not a given

Stakes are high as traditional watches face down smartwatches

Luxury Under Fire

Rising production costs drive up prices for Swiss-made brands

Men’s luxury timepieces need to unlock new markets

Women’s luxury timepieces face sternest challenges to date

Richemont: Western markets no longer a buffer for Asian losses

Swatch Group: Visibility at Rio Olympics could give a boost

Rolex SA: Traditionalists battle with new generation of modernisers

LVMH: Weak Euro flatters financial performance

The Battle for the Middle Ground

Basic watches eye opportunity with the emerging middle class

Mid-priced brands seize ground in the fashion stakes

Fossil Group: Seeking to up the ante in wearable electronics

Swatch Group: Targeting the middle ground, especially in China

Seiko Holdings: Betting on higher priced watches

Citizen Holdings: Geographical mix pays off, rise in market share

Timex Group: New connected devices to resuscitate growth

Casio: Better late than never in entering the smartwatch arena

A Shifting Retail Landscape

Specialist retailers face up to the burgeoning power of the internet

The internet challenges conservatism of old-school watchmakers

Specialists will struggle as shopping mall sales fall in key markets

Fashion retailers ramp up competition in the middle ground

Department stores face uncertain future as footfall slows

Opportunities

The enduring brand power of “Made in Switzerland”

Japanese watchmakers leverage newfound cachet in heritage

Leading watchmakers need to harness the digital revolution

Asia Pacific remains a power base for incremental growth

The emerging stars of southeast Asia

Key Takeaways

An uncertain outlook for traditional watches as headwinds build

Mapping shifts in geographical revenue power to 2020

Shaking up the watches industry for better or for worse

Report Definitions

Data parameters and report definitions (1)

Product category definitions (2)

Product category definitions (3)

Why buy this report?

Want to find out more about this report?

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