Luxury Timepieces in South Africa

PROSPECTS

Second-hand market makes consumers tick

There is a growing appetite among locals for luxury brands, especially accessories such as jewellery and watches. For consumers who are unable to purchase new products, second-hand items are often the next best option.

More than just a status symbol

Luxury watches are a favourite status-driven accessory for aspirational consumers and wealthy shoppers alike. The nouveau riche invest in luxury timepieces to demonstrate their newly acquired success and social status.

The price spectrum widens, making ownership more affordable

Entirely new brands have emerged in luxury timepieces and existing brands have widened their collections to include more models. This has resulted in more extensive choice for luxury consumers, who previously had to wait for their next international trip to purchase their favourite brands.

COMPETITIVE LANDSCAPE

Share sizes are generally small as competition strengthens

When considering players besides the leader, which accounts for nearly half of total value sales, luxury timepieces is increasingly fragmented, consisting of mono-brand stores and jewellery specialists also stocking luxury brands. Cie Financière Richemont SA comfortable sales leadership arises from the fact that it has distribution rights to some strong brands, such as IWC Schaffhausen Gucci, Vacheron Constantin and Jaeger-LeCoultre.

Rise in online retail winds up demand for second-hand trade

Although sales of second-hand items are not tracked by Euromonitor International, it has been observed that second-hand luxury timepieces are gaining prominence in South Africa, assisted by the proliferation of online stores selling luxury accessories such as handbags and watches, and are sold at a fraction of the price of new ones. Many online traders, such as Peter Machlup Fine Wristwatches & Diamonds, do not hold stock in South Africa but serve as an intermediary between local buyers and international sellers.

International names increase their local presence

Luxury brands such as Breguet, Montblanc and Omega are focusing more on marketing their products locally. Breguet and Omega have increased their visibility in South Africa by adding more shops within shops.

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