Luxury Portable Consumer Electronics in Sweden

PROSPECTS

Swedes’ early adopter reputation does not extend to luxury portable consumer electronics

Luxury portable consumer electronics continued to record very low sales levels in 2019. Ostentatious displays of wealth continue to be frowned upon in Sweden and functionality remains more important when it comes to electronics.

Functionality favours luxury timepieces over luxury wearables

While luxury timepieces are considered to be an investment and a status symbol, the same thinking does not apply to luxury smartwatches among Swedish consumers. Functionality is also very important, with an Apple Smartwatch, for example, considered to have the same or even better functionality and performance than luxury wearables.

Low sales level discourages entrance of new players

There are no signs that demand for luxury portable consumer electronics will explode in the near future, with sales expected to remain at very modest levels over the forecast period. The small size of luxury portable consumer electronics in Sweden has discouraged the entry of new players.

COMPETITIVE LANDSCAPE

TAG Heuer and Frederique Constant dominate sales with their smart wearables

Frederique Constant and TAG Heuer continue to account for more than half of value sales between them. Both have focused on making watches as similar as possible to their traditional watches, but with added features, which appeal to some consumers and is most likely the way forward, given the rising interest in luxury timepieces.

Physical stores dominate sales as the internet is still mainly used for research purposes

Physical stores dominate sales of luxury portable consumer electronics, with the internet, generally used for research purposes for such products, having a still very limited share. This is despite the fact that it is still only a limited number of bricks-and-mortar outlets selling luxury portable consumer electronics products.

Popularity of luxury timepieces hampers the growth of luxury wearables

Luxury wearables will likely always face strong competition from luxury timepieces, although the reverse does not hold true in Sweden. Luxury wearables have generally not been able to attract traditional luxury timepiece wearers, partly because the industry does not have the same history or image in terms of quality.

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