Luxury Portable Consumer Electronics in Italy

PROSPECTS

Decline due to the poor performance of luxury mobile phones

Although luxury portable consumer electronics saw a far better performance in 2019 than was seen in 2018, there was still a small current value decline. This was due to the double-digit decline seen by luxury mobile phones.

Luxury mobile phones is negatively affected by the Vertu crisis

Another factor which led to the strong decline of luxury mobile phones at the end of the review period was the bankruptcy of Vertu due to a GBP128 million accounting debt. Although in March 2017 Vertu had been acquired by Baferton Trading, the latter could not pay the creditors all the debts owed, and as a result, Vertu announced its bankruptcy and shut down its manufacturing site in the UK.

Strong growth potential for luxury wearables

Luxury wearables showed the best current value performance in 2019. The category only started to emerge in 2015 in Italy, but in 2017 saw further developments, with TAG Heuer launching its second luxury smartwatch, Connected Modular 45, and Montblanc entering the category with Montblanc Summit.

COMPETITIVE LANDSCAPE

Frédérique Constant increases its share, offering smartwatches with a classic look

Frédérique Constant led both luxury wearables and overall luxury portable consumer electronics in value terms in 2018. The company has a smartwatch line with a classic look, and offers many references, with 23 models available.

Vertu returns to the Italian market

In 2018, after having temporarily interrupted its production due to bankruptcy in 2017, Vertu launched a new mobile phone called Aster P, with a starting price of EUR4,400; although with different options this price can reach EUR12,000. It offers a virtually indestructible titanium body, and the display is protected by 133-carat sapphire glass.

New launches in luxury wearables should boost growth in the forecast period

In 2019, TAG Heuer launched new models of luxury smartwatches, such as TAG Heuer Connected Modular Golf Edition. Meanwhile, Garmin launched its first luxury smartwatch line called MARQ in 2019, which includes five different references with different features, each with a unique and recognisable design: Aviator, Captain, Driver, Expedition and Athlete.

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