Luxury Timepieces in Russia

PROSPECTS

Luxury timepiece brands look to expand target audience to counter declining demand amongst certain segments of Russian men

Although luxury timepieces continued to be dominated by the men’s category in Russia, the ongoing weak performance by the latter influenced overall sales. Male consumers in Russia are becoming increasingly selective in their choices, and are purchasing non-essential items less frequently.

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Although affluent Russians traditionally purchase luxury timepieces to display their wealth, status and the chance to express their individuality through exclusive models, some consumers view owning a luxury timepiece as an investment or work of art, due to the history, uniqueness and craftmanship behind each piece. They are therefore also more likely to be passed down to the next generation within the family as an heirloom.

Change of marketing strategy as brands increasingly focus on experiences and activities that are likely to attract younger audience

There has been a noticeable shift by brands in how they market and advertise their luxury timepieces, moving away from the traditional rather outdated use of images such as luxury yachts and glamourous lifestyles. Instead, a stronger emphasis is being placed on brand heritage and more of a focus on active lifestyles, travel and extreme sports, which are more likely to appeal to a younger generation who can identify with these activities.

COMPETITIVE LANDSCAPE

Varying strategies used by brands to expand target audience

Apart from the three leading brands of Rolex, Cartier, and Omega, which each held double-digit value share, the competitive landscape amongst the remaining luxury timepieces was fairly fragmented with a higher number of brands holding low value share in 2018. These well-known global brands enjoy a high level of recognition amongst local consumers, helping them to retain and strengthen their positions within the category.

Bvlgari continues to make strong progress with wider presence and new launches

Bvlgari was one brand that continued to buck the declining trend within luxury timepieces, recording strong current value growth and working its way up the rankings in 2018. The brand has continued to strongly invest in promotion in addition to opening a new boutique in St.

New launches concentrate on offering ultra-thin timepieces, and specific colour concepts to attract exclusive customers

Other interesting new models of luxury timepieces to emerge towards the end of the review period in Russia included Audemars Piguet, which was well-received when it launched its Royal Oak Perpetual Calendar Ultra-Thin model at the SIHH 2018 (trade show Salon International de la Haute Horlogerie). The concept watch claims to be the world’s thinnest automatic timepiece to feature a perpetual calendar.

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