Luxury Portable Consumer Electronics in Sweden

PROSPECTS

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

Luxury portable consumer electronics remained a small category in 2018, with Swedes generally preferring traditional watches to luxury wearables. Swedes do not aspire to own new luxury portable devices such as Michael Kors wearables like they do for a new watch from Breitling or Patek Philippe, for example.

New is not always better

Attracting consumers to smartwatches in Sweden will require new thinking regarding design and performance. The performance limitations of most smartwatches also have a negative impact on the luxury segment as cheaper watches generally offer the same type of performance or an even better one as they do not have too many added features which drain the life of the battery.

Low value sales means a lack of competition

The small size of luxury portable consumer electronics in Sweden has discouraged the entry of new players. Thus far, this has enabled the leading brand owners to maintain their positions relatively easily, with the ongoing small size of the category likely to mean a largely unchanged competitive landscape over the forecast period.

COMPETITIVE LANDSCAPE

TAG Heuer and Fossil dominate sales in a category struggling to attract consumers

TAG Heuer remained the leading player in luxury portable consumer electronics in 2017, perhaps due to its ability to attract consumers who normally purchase traditional timepieces. TAG Heuer has thus been able to attract consumers which its competitors Michael Kors and Hugo Boss have not managed to reach.

Physical stores dominate sales while the internet is used for research purposes

Despite the low number of outlets selling luxury portable consumer electronics, these goods are mainly purchased in physical stores. However, when considering making a purchase, many Swedes will research luxury wearables on the internet to compare features and prices before then visiting a store so they can see and touch these products before spending a considerable amount of money.

Popularity of luxury timepieces hampers the growth of luxury wearables

Luxury wearables will likely always face strong competition from luxury timepieces, although the opposite 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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