Watches in Brazil

PROSPECTS

Forecast of weak recovery of economic indicators negatively impact watches

The Brazilian economy is expected to continue at a slow growth pace in the early part of the forecast period. High unemployment rates and declining purchasing power are difficult challenges for the country’s consumption in the mid-long term.

Basic watches tend to maintain leadership among the price bands

Basic watches held the highest retail volume share amongst mechanical, quartz analogue and quartz digital. These products are manufactured by small domestic producers as well as big players such as Casio and Technos da Amazônia Indústria e Comércio (with the brands Technos, Condor, Timex, Dumont, Allora) with cheaper models.

Brands are expected to continue exploring new targets

The main manufacturers are expected to diversify their portfolios by launching or licensing new brands and acquiring local players. This strategy will enjoy greater relevance among basic and mid-price tiers since their targets are more sensitive to price variations and many consumers are attracted to the next-level affordable piece.

COMPETITIVE LANDSCAPE

Technos da Amazônia Indústria e Comércio Ltda leads but loses traction

Even with the strong position of owning most brands in watches, Technos experienced a loss in value share in 2018, mainly due to the competition with smaller players offering cheaper brands. Other important manufacturers such as Orient Relógios da Amazônia, Seculus da Amazônia Indústria e Comércio and Magnum Indústria da Amazônia also lost marginal share due to the same movement.

Jóias Vivara records fastest value share growth

With a valuable and recognisable brand, Jóias Vivara enjoys organic growth due to the expansion in the number of international watch brands distributed with exclusivity (Movado, Lacoste, Guess and Tommy Hilfiger) and the growing number of stores in Brazil. In addition, Jóias Vivara strongly announced promotions throughout 2018, stimulating consumption.

Category becomes increasingly fragmented and others gain value share

Other manufacturers beyond the top five (Technos, Orient, Seculus, Magnum and Jóias Vivara) are gaining ground due to their low prices and because leisure and personal goods specialist retailers is a highly fragmented distribution channel with many small neighbourhood stores that demand entry-level products. With technological development, the cheapest models can now also look somewhat technological or stylish.

Files are delivered directly into your account within a few minutes of purchase.