Watches in Brazil

PROSPECTS

Omnipresence of smartphones will continue negatively impacting watches

While, in the past, watches were considered items of basic need, the strong growth of smartphones, which offer many functional features, including watch apps and the time automatically displayed on the screen, watches have been increasingly negatively affected by this. Watches are now mainly in demand among people seeking style and durability (found in the most expensive models), health monitoring (found in wearables, covered by Euromonitor International under consumer electronics) or low-cost items that can be easily replaced by a new product in the short-to-medium term.

Basic watches tend to continue leading

Even though basic watches dominate overall watches sales and the basic products are expected to continue posting positive growth in the coming years, these entry-level products have the potential to grow at a faster pace, but are negatively affected by sales of illegal products (especially coming from China). Casio and Technos da Amazônia Indústria e Comércio (with the brands Technos, Condor, Timex, Dumont, Allora) are the main players with cheaper models.

COMPETITIVE LANDSCAPE

Technos da Amazônia Indústria e Comércio Ltda leads but cheaper brands gain traction

The traditional leadership held by Technos over the years still means it has a comfortable lead in watches, but other important players such as Orient Relógios da Amazônia, Seculus da Amazônia Indústria e Comércio, Magnum Indústria da Amazônia and Casio Brasil Comércio de Produtos Eletrônicos Ltda achieved growth, especially with cheaper lines, as a consequence of the difficulties in the Brazilian economic environment.

Economic difficulties to continue benefiting cheaper models

The cheaper lines produced locally experienced better conditions to grow during the recent periods of economic difficulty and consumers’ need to redefine their priorities in terms of spending. Unlike in the pre-crises periods, when the trading-up process helped many categories to develop sophisticated offers, the coming years are projected to continue seeing slow growth rates, conditions that are expected to continue favouring cheaper brands.

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