Luxury Timepieces in Taiwan

PROSPECTS

Leading brands targeting younger consumers with more affordable ranges

Mild growth within luxury timepieces is being supported by the offering of more product variety in terms of price and design. This is helping to attract millennials, whose importance to sales continues to increase.

Growing focus on status rather than functionality

The ubiquity of smartphones and their use for all manner of everyday purposes has undermined demand for traditional timepieces. As a result, timepieces are increasingly purchased for their decorative and symbolic properties, rather than for timekeeping.

Online collector communities help fuel interest and brand awareness

Online platforms allow enthusiastic timepiece collectors to easily form communities to access and exchange information and experiences. For example, the Horoguides online platform was launched in 2017 and targets watch collectors in Taiwan and Hong Kong.

COMPETITIVE LANDSCAPE

Introduction of luxury smartwatches in response to changing demand trends

With smartwatches representing an increasingly prominent threat to traditional timepieces, manufacturers of luxury timepieces are looking to leverage the strength of their brands in the category. Boutique brand, Montblanc, launched its first smart watch, Summit, in 2017, and followed this with the introduction of Summit 2 in October 2018.

Growing focus on targeting tech-savvy younger consumers

While luxury players are looking to develop a presence in smartwatches, luxury timepieces’ core consumer base is not immediately drawn to smartwatches, favouring an image founded on heritage and a classic aesthetic. However, the fact that this consumer base is comprised largely of older consumers, while younger people are the key consumers of smartwatches represents a long-term threat to traditional timepieces unless manufacturers can develop their brand images in line with the preferences of younger consumers.

Rolex remains in pole position despite growing competition from smaller players

Nevertheless, Rolex remains the leading luxury timepieces brand in Taiwan, benefiting from a strong image founded on the reputation of Swiss-made timekeeping products and being a symbol of wealth. However, in common with all of the top seven manufacturers, Rolex experienced a decline in value share between 2015 and 2017 as smaller players tapped into the shift in the character of demand in luxury timepieces from functionality towards symbolism and status.

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