Watches in Canada

PROSPECTS

High mechanical watches underpins growth across watches in 2018

High mechanical watches recorded healthy sales growth in 2019, with rising demand driven by the still buoyant luxury goods market after a slowdown was seen in the category earlier in the review period. Canada’s luxury watch retailers have expanded across the country’s major urban centres such as Toronto and Vancouver as part of the luxury goods boom which was in evidence throughout the second half of the review period.

Positive growth in quartz analogue watches driven mainly by high-priced watches

Quartz analogue watches posted moderate positive sales growth in 2019, with sales driven mainly by high quartz analogue watches from luxury brands such as Hermes, Tag Heuer and Breitling. Luxury retailers continued to expand their presence throughout Canada’s major urban areas in 2018.

Traditional watches likely to face more challenges from smart watches

Traditional watches continue to face strong competition from the emergence of wearable electronics. In particular, smartwatches and hybrid connected watches which look like regular analogue watches but which have built-in connective features such as activity tracking and smartphone notifications are likely to become increasingly attractive to younger consumers due to their multiple functionality.

COMPETITIVE LANDSCAPE

Timex Group continues to lead sales of watches

Timex Group Canada remains the leading player in watches in Canada. Timex benefits from the broad distribution for its range of mid and basic watches, including online sales through Timex.

New sales of luxury watches to face further competition from second-hand sales

Canada’s pre-owned luxury watches market continued to grow towards the end of the review period. Domestic e-commerce sites are particularly strong in the offer of used watches.

Jewellery and watch specialist retailers remains the dominant distribution channel

Despite the ongoing growth being registered in sales of watches through internet retailing, jewellery and watch specialist retailers remains the category’s dominant retail distribution channel. This applies particularly to sales of high mechanical watches, which consumers will invariably want to have a close look at before committing to a purchase, not least for reasons of authenticity.

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