Luxury Timepieces in Japan

PROSPECTS

Strong demand amongst inbound tourists

The ongoing rise in inbound tourism is having a positive impact on sales of luxury timepieces in Japan, which is expected to continue over the forecast period as the government works towards its target of raising inbound tourists numbers to 60 million by 2030. Luxury timepieces is amongst the categories to benefit from Japan’s reputation for reliability in terms of product authenticity.

Growing threat from sharing services

While owning a watch from a luxury brand has been considered to be a status symbol in Japan, consumer attitudes are shifting, with younger consumers showing a preference for experiences over luxury goods. Purchases built on brand prestige are increasingly limited to consumers over 40 years of age.

Luxury segment not invulnerable to developments in consumer electronics

Another significant threat to luxury timepieces is the rise of consumer electronics and the increasing blurring of the lines between timepieces and consumer electronics. In 2019, watch manufacturer, Citizen partnered with Fossil to develop hybrid watches, for example.

COMPETITIVE LANDSCAPE

Category leader introduces Tudor to the Japanese market

Rolex Japan Ltd extended its lead over Richemont Japan Ltd in luxury timepieces in 2018. The company officially launched the Tudor brand in the Japanese market in October 2018, with the brand gaining considerable consumer attention.

New stores and increasing competition

Manufacturers targeted the potential of luxury timepieces with the opening of new stores towards the end of the review period. Omega opened its largest store in the market in Roppongi, Tokyo, while Seiko, which is primarily focused on mass-market products, opened a luxury store in Ginza, Tokyo.

Sharing services a greater threat than smartwatches

The emergence of smartwatches and sharing services continue to be a threat to traditional watches. Luxury timepieces are significantly more resilient in the face of competition from smartwatches than conventional mass-market products, because luxury demand is supported by the prestige of traditional craftsmanship and aesthetics.

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