Luxury Timepieces in Argentina

PROSPECTS

Category players come to terms with the reality of Argentina’s ailing economy

With Argentina’s economy still struggling at the end of the review period, the leading players in luxury timepieces were forced to rationalise their operations as they face the grim reality of high inflation and changing consumer spending behaviours. Among the major issues they face is that the significant depreciation in the exchange value of the Argentinian peso over the course of 2019 has resulted in the unit prices of all imported products skyrocketing in local currency terms.

Falling real incomes result in a narrowing of the consumer base for luxury timepieces

In the past, demand for luxury timepieces encompassed a broad range of Argentinian consumers from middle-income and mid-to-high socioeconomic segments. Within this context, luxury timepieces were often considered ideal commemorative gifts for special occasions such as weddings, birthdays, retirements, anniversaries and such.

The emergence of smartwatches poses a threat to sales of luxury timepieces

Towards the end of the review period, sales of smartwatches continued to increase in Argentina as the range of brands and products available in the category proliferated. In addition, smartwatches are becoming increasingly sophisticated and functional, making them a more practical option and justifying the relatively high prices that are still charged for most of the brands present in the category.

COMPETITIVE LANDSCAPE

Rolex maintains category leadership via its strong retail presence in Buenos Aires

Rolex remained the leading player in luxury timepieces in 2018, dominating sales and exerting a strong influence over the overall category. The key to Rolex’s success in the country is based on its strong retail presence in Buenos Aires, which has been established in collaboration with the renowned local jewellery brand Santarelli.

Omega expand its retail presence as it bids to gain share

The Swatch Group remained in third position in luxury timepieces in Argentina in 2018 via its brand Omega. The company is intent on making an impact in Argentina by presenting itself as the ideal alternative to the category leading brand Rolex.

Rolex focuses on the exclusive yachting set to position its brand

For many years, Rolex has focused promotion of the exclusivity of its brand on Argentina’s well-healed yachting enthusiasts. In Argentina, yachting is second only to polo in terms of its status as an exclusive sporting and lifestyle activity for very affluent individuals.

Files are delivered directly into your account within a few minutes of purchase.