Luxury Timepieces in the United Kingdom

PROSPECTS

Currency instability directly impacts sales

More than two years on, the fate of luxury timepieces still seems closely linked to the tribulations of Brexit negotiations. Currency fluctuations have had a noticeable impact on sales of luxury timepieces, often in contrast with the rest of the economy.

Brands benefit from a changing retail landscape

The retail landscape in luxury timepieces in the UK is a tale of two cities; or more precisely the market can be divided between one city, namely London, and the rest of the country. Taken as a whole, the share of specialist retailers is steadily decreasing relative to alternative channels, reflecting in sluggish actual growth.

Can smartwatches cannibalise luxury timepieces?

The decrease of imports of luxury timepieces from Switzerland to the UK is sometimes linked to surging sales of smartwatches, implying a shift of consumer preferences. But a case can be made against this assumption, as the potential for substitution between the two products is not as straightforward as it seems.

COMPETITIVE LANDSCAPE

Rolex continues to lead, followed by Patek Philippe

The Rolex Watch Co remained the leader in luxury timepieces in the UK in 2017, followed by Swiss watchmaker Patek Philippe. The latter held a solid double-digit value share in 2017, and although it was some distance behind Rolex, it was also comfortably ahead of its closest challengers.

The move towards digital

The online presence of Patek Philippe is not comparable to its major rivals: Rolex has 8.7 million followers on Instagram, while Patek Philippe has around 150,000.

Richemont invests in new forms of retailing

Richemont UK’s latest move is sending shockwaves through the watch industry. The Swiss group has acquired 100% of Watchfinder & Co, a British online retailer of pre-owned and ex-stock luxury watches.

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