Luxury Timepieces in the Philippines

PROSPECTS

Luxury timepieces convey social status and personal image, social media platforms raise awareness

The luxury timepieces category saw continued growth in 2019. Consumers are interested in the benefits of buying luxury watches, and prefer to purchase watches whose value is likely to increase in future.

Increased interest in vintage and rare timepieces impacts demand for new products

Towards the end of the review period there were an increasing number of young collectors, who demonstrated a preference for used and rare pieces over buying new models. The enthusiasm of young professionals for more practical investments also pushed this trend, seeking opportunities to enhance their social status.

Events implemented to increase awareness among more youthful consumer base

As the consumer base becomes younger, Patek Philippe hosted the “Knowledge Series” event in Manila. The player brought in vintage branded pieces from Patek Philippe Museum in Geneva to demonstrate its way of producing timepieces across history.

COMPETITIVE LANDSCAPE

Entry-level products appeal to middle-income consumers and young professionals

Rolex SA remained the leading player in 2018, due to its long-term presence and considerable status. Fast-growing brands such as Cartier and TAG Heuer were heavily characterised by their ability to reach out to consumers looking for entry-level purchases.

Global luxury brands set to target local consumers in coming years

The efforts of brands to reach out to consumers and not rely on global marketing strategies is expected to stimulate demand for luxury timepieces. Luxury timepieces’ high cost alienates many consumers and discourages purchases.

Vintage designs and limited editions likely to appeal to younger consumers seeking exclusivity and demonstration of style

As more consumers seek prestigious timepieces, and younger consumers demonstrate a greater willingness to pay for more expensive timepieces, companies will need to develop strategies to attract more affluent millennials and young professionals. One way to do this is to offer rare collections with vintage designs to cater to the growing interest in such products.

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