Is Time Running Out For Traditional Watches?

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)

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