Luxury Portable Consumer Electronics in the United Kingdom

PROSPECTS

Luxury mobile phones rendered obsolete by smartphones

With the demise of Vertu in 2016, luxury mobile phones have struggled to maintain momentum over the last few years. The common characteristics of luxury phones include enhanced security features, luxurious and expensive decoration and very high price-points.

Luxury wearables grows, albeit more slowly

Luxury wearables enjoyed growth in 2019; the vast majority of the category is comprised of smartwatches, with a fitness tracking capability. The premium segment has embraced the fitness tracker technology originally made popular by Fitbit.

Consumers demand less conspicuous consumption and more convenience

Luxury goods are more accessible than ever, particularly luxury wearables. The multi-functionality and inherent exclusivity offered by such products makes luxury wearables doubly desirable, and the advanced technology such as fitness tracking justifies their high price point compared with classic timepieces.

COMPETITIVE LANDSCAPE

Luxury wearables sees increasing competition

Although luxury wearables will continue to grow over the forecast period, the brand rankings are expected to change over this time. There is so much competition in the smartwatch category which in itself is a hybrid category between apparel/accessory/watch.

Wearable technology needs to blend into consumer lifestyle

Today’s luxury consumers want convenient and highly-functional devices that seamlessly blend into their lifestyles, rather than elaborate accessories that serve as status symbols. Due to the fact that most people are living hectic, highly-connected lives, they want their electronics to enhance their daily activities in sleek and non-obvious ways.

Accessibility and availability blur the lines between luxury and mass

Luxury wearables remains an ambiguous category as it seems to be ambitiously catering to variety of needs. Frederique Constant, ranked the highest luxury wearables in the UK in value terms in 2018, followed by Tag Heuer.

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