Watches in China

PROSPECTS

Rising demand for high-end watches

High-end watches saw significant signs of recovery towards the end of the review period, boosted by an increase in imports of Swiss-made watches. An upmarket shift in domestic demand is being supported by a switch from Chinese consumers buying luxury items while travelling abroad to purchasing them at home due to a falling yuan and government measures such as cutting import tax.

Strong demand for mechanical watches amongst male consumers

Demand for mechanical watches is underpinned by some male consumers’ perception that such products express social status and personal wealth. In addition, there is an appreciation of the craftsmanship and expertise required to produce the complex, high-precision mechanisms of such watches, which is built on a heritage going back several hundred years.

Swiss brands look to build online presence

Following in the footsteps of renowned watches brands such as Tissot and Longines, many other brands are looking to take advantage of the opportunities afforded by internet retailing. Swiss watch manufacturer, Audemars Piguet, moved into online retailing via major Chinese e-commerce platform, JD.

COMPETITIVE LANDSCAPE

Targeting millennials with celebrity endorsements

With a growing emphasis on branding and, in particular, targeting millennials, watch manufacturers are increasingly turning to endorsement by celebrities that are popular with this target demographic. Wang Junkai became a Swatch brand ambassador in December 2017, with the company launching a collaborative watch collection with the famous singer and actor early in 2019.

Local players responding to multinational dominance

Multinationals dominate the Chinese watches market. International brands such as Rolex, Cartier and Omega benefit from their high-end positioning, reputation for quality, and prestige, which have enabled them to establish considerable consumer loyalty.

A more regulated e-commerce environment

Internet retailing is growing rapidly in watches. While it is set to continue doing so over the forecast period, supported by developments such as JD.

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