Luxury portable consumer electronics is a niche category within luxury goods in Singapore, which had been experiencing mixed results over the review period prior to the pandemic; these products had continued to compete with mass brands which offered increasingly innovative technology at more affordable prices. Luxury wearables dominates overall in both retail volume and value sales and had experienced an upturn in demand in 2019, benefiting from rising health and wellness trends and increasing interest in athleisure whilst being driven by the desire to display one’s social status with high-end smart watches.
The emergence of the pandemic only served to exacerbate an already declining trend experienced by luxury mobile phones in Singapore, with waning demand for this category driven by strong competition from mainstream alternative smartphones which have continued to develop their technology at more affordable price points. Moreover, the category had already seen the exit of former dominant leader Vertu in 2017, due to lack of interest, making it difficult to sustain commercial value, particularly as consumers could no longer justify the higher prices as these products were no longer perceived to offer a similar social status symbol compared to luxury timepieces, for instance.
Following Vertu’s exit from luxury portable consumer electronics in Singapore, Hermès International SCA consolidated its leading position of the category pre-pandemic, due to its affiliation with Apple, where it offers the Apple Hermès iWatch brand. Porsche Design GmbH on the other hand, had continued to suffer from value share decline in 2019.
Demand for luxury portable consumer electronics is predicted to greatly improve starting from 2021, driven by the more dynamic performance of luxury wearables. Growth will be supported by an increasing focus on health following the pandemic, strengthening consumers’ resolve to take care of their physical wellbeing as well as track their fitness goals as restrictions in Singapore continue to be relaxed, and consumers spend longer periods of time outside.
Despite the increasingly consolidated competitive landscape of luxury portable consumer electronics towards the end of the review period, the forecast period could see the further entry of new models from producers of timepieces including TAG Heuer (under Louis Vuitton Singapore Pte Ltd). This could pose a threat to more established players in this category such as Hermès International with its Apple Hermès iWatch.
In a continuation of its declining trend already noted prior to the pandemic, demand for luxury mobile phones is predicted to further fall, making the category virtually obsolete in Singapore by 2025. With more mainstream brands continuing to move rapidly to address consumers’ changing demands, and the latest technological developments, more affluent consumers are likely to upgrade to the latest smartphone offered by the likes of Apple or Samsung rather than spend a greater amount of money on a luxury mobile phone with outdated technology, worn purely for image and status.
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Understand the latest market trends and future growth opportunities for the Luxury Portable Consumer Electronics industry in Singapore with research from Euromonitor International's team of in-country analysts – experts by industry and geographic specialisation.
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This report originates from Passport, our Luxury Portable Consumer Electronics research and analysis database.
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