Luxury Timepieces in Thailand

2021 DEVELOPMENTS

After a decline in sales in 2020, the category returns to growth in 2021 stimulated by new launches

Luxury timepieces registered strong sales declines during 2020 as the COVID-19 pandemic placed significant pressure on demand for non-essential products. Pressure on jobs and disposable incomes due to the uncertainty created by the pandemic in 2020, meant relatively few people were able to justify spending significant sums on luxury timepieces.

Industry players continue to see temporary store closures in red zones in 2021 and move many of their advertising and marketing activities online

Online sales of luxury timepieces remained minimal in 2021 despite the major shift towards e-commerce that was seen across numerous consumer goods industries over the course of the year as the COVID-19 pandemic affected the ability of consumers to shop in stores. The high prices charged for luxury timepieces, the perceived risk of fraud when completing high-value online transactions and the fear of purchasing counterfeits all countered e-commerce.

After a sole reliance on online marketing in 2020, some exhibitions of luxury timepieces take place in 2021

With affluent consumers increasingly turning to online channels for information about the luxury timepieces that they are considering purchasing before heading to a store to have a professional sales consultation, product reviews on social media platforms and internet forums are becoming a more important source of information about luxury timepieces. With this in mind, the category’s leading brands are increasingly interested in managing these reviews and ensuring that consumers gain accurate and helpful information that also presents the brand in a positive light.

PROSPECTS AND OPPORTUNITIES

Strong sales recovery based on rising demand among younger consumers

The recovery in luxury timepieces seen in 2021 is expected to continue over the remainder of the forecast period with many potential purchasers of luxury timepieces opting to buy these products and release pent up demand that built up during the height of the pandemic, when such purchases were delayed due to the economic uncertainty. As the eventual recovery of the Thai economy, in part due to a reopening of borders and resumption in tourism, encourages greater consumer confidence, luxury timepieces are expected to become more attractive, especially as many of the high-net-worth individuals and affluent elites who are likely to be most interested in purchasing luxury timepieces are likely to have been less negatively impacted financially by the pandemic.

New launches and marketing designed for specific target audiences such as younger demographics, women and sporty people

With the core consumer base for luxury timepieces expected to become younger during the forecast period, it is inevitable that the marketing campaigns of the category’s leading players will increasingly target this emerging and potentially lucrative consumer base. In addition, marketing campaigns in the category can be expected to focus more on women, a consumer base that is also expected to expand and increasing importance during the forecast period.

Store-based retailers remain predominant though omnichannel strategies increasingly in vogue with players also offering more favourable payment schemes

Store-based retailers will remain predominant with brands set to open new outlets. For instance, in March 2021, Breitling launched a new boutique at the Siam Paragon Shopping Mall.