Luxury Timepieces in Japan

PROSPECTS

Tourists see Japan as reliable/reasonable location to purchase luxury

Japan has experienced a boom in foreign visitors in 2018. This is expected to continue over the forecast period as the government plans to increase the number of tourists visiting Japan from 29 million in 2017 to 40 million by 2020, and 60 million by 2030.

Sharing services becoming a threat

For local consumers, demand is slightly shifting away from luxury timepieces especially among younger consumers who are showing a preference for experiences over luxury goods. Previously, owning a watch from a luxury brand was considering to be a status symbol.

Specialists and mixed retailers continue to be main retail channel

Although internet retailing continues to grow, non-grocery specialists and mixed retailers such as department stores continue to dominate the distribution of luxury timepieces. Consumers generally prefer to go to a physical store and try out the watch before making a purchase.

COMPETITIVE LANDSCAPE

Global players lead the market

Global players continued to lead the category in 2017 with brands such as Cartier, Omega, and Rolex leading. Special events and new store openings were seen from the leading global brands over the review period, especially in prominent locations in Japan.

Players introduce membership schemes to retain brand loyalty

To compete with sharing services such as KARITOKE, manufacturers of luxury timepieces are searching for ways to retain loyalty and commitment from existing consumers. Such activities include premium membership services or holding special events that are limited to existing watch owners.

Bvlgari sees double-digit growth

Operating a number of stores across Japan including in key locations such as Tokyo and Osaka the brand also runs a successful ecommerce business in the country, which helped the company to increase its value share over the review period. As well as its permanent stores the brand has also used pop-up stores to help build brand awareness and to promote new products, such as its pop-up at Hankyu Umeda in Osaka in October 2018.

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