Luxury Portable Consumer Electronics in Australia

PROSPECTS

Growing demand from millennials

Millennials is the biggest consumer group in luxury goods, and will continue to drive growth in the next decade. This time-constrained and technology-driven generation can be engaged by introducing products that provide new experiences of technology that match their busy lifestyles.

Increasing privacy concerns

Smartwatches are expected to replace phones, with built-in sim pockets and internet connection. Whilst many companies are innovating to introduce even better products, care needs to be taken with regard to customers’ privacy and the information that is being collected.

Growing demand for luxury wearables

There has been an increase in the demand for wearables following the recent boom in the health and fitness trend. Most Australians are already using wearables to monitor their health and physical activity.

COMPETITIVE LANDSCAPE

Vertu goes bankrupt

Vertu, having been passed from Nokia to three different owners, had been hand-crafting luxury mobile phones since 1998. The company was struggling to turn a profit for years; hence, faced liquidation in 2017 after its UK manufacturing operations closed.

Innovation in smartwatches

Luxury wearables is saturated with companies such as Montblanc, TAG Heuer and Louis Vuitton, and these companies are continually looking for opportunities to innovate. These luxury companies have introduced wearables serving purposes such as measuring and comparing different statistics.

Increased collaborations

Multiple collaborations were seen in this category during the review period. Apple’s partnership with luxury company Hermès in 2016 to provide leather strap smartwatches is a prime example.

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