Luxury Timepieces in the US

PROSPECTS

Federation of the Swiss Watch Industry reports an increase in exports to the US

Following an abysmal two years in 2015 and 2016, luxury timepieces in the US managed to slow down its decline. Much of these losses can be ascribed to consumers simply not wearing watches as much any longer, especially the emerging millennial generation.

Apple claims more sales of Apple Watches than the entire Swiss watch industry

Many industries have felt the pressure of technologies or applications cutting into their respective markets, and luxury timepieces has felt the same intrusion at the hands of smartphones and smartwatches. Smartwatches are a parallel to mechanical timepieces, given that both are worn on the wrist and serve the function of telling the time without having to pull out a smartphone.

Further emergence of internet retailing, as well as other luxury timepiece services

Internet retailing continued to see growth in luxury timepieces in the US in 2018. The convenience of having goods shipped directly to the customer without needing to attend a physical store works well within luxury timepieces.

COMPETITIVE LANDSCAPE

Swatch Group pulls out of the Baselworld watch conference

In a surprising announcement, Nick Hayek, CEO of Swatch Group, commented that Swatch Group will not be returning to the annual Baselworld conference in 2019. Baselworld is one of the largest annual international trade shows for watches and jewellery.

Movado Group acquires the MVMT brand

In an effort to expand its holdings, Movado Group purchased MVMT in 2018. Movado Group purchased the company for USD100 million, with the company having seen revenue of USD71 million in 2017.

A movement away from mixed retailers towards internet retailing and boutiques

In response to the poor performance of timepieces in recent years, luxury producers in the industry have begun to prioritise the online channel and flagship stores instead of varied distributors. As a way to connect more directly with consumers, internet retailing and boutiques are primed to create a consumer experience that encompasses all stages of a relationship between a consumer and brand, from purchase to maintenance.

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