Watches in China

PROSPECTS

Trend towards premiumisation continues

Thanks to recovery in the Chinese economy and consumers trading up, demand for high-quality watches increased – exports of Swiss watches to mainland China witnessed a slight rebound over the review period. Many Chinese consumers with improving living standards are inclined to purchase mid- and higher-priced watches to express their personal taste and social status.

Sports-themed products with enhanced functionality appeal to young consumers

As the health and wellness trend continued to gain ground in China, players seeking to attract the attention of young consumers introduced exquisitely designed watches with various sports-themed functions. Examples included Patek Philippe's Nautilus series numbered 5740/1G-001, which featured a perpetual calendar, and its Aquanaut series numbered 5968A-001, which featured a chronograph.

Omni-channel is emerging and on the rise in local watch market

While jewellery and watch specialist retailers and department stores remained the leading distribution channels, manufacturers continued to explore alternatives. For example, in January 2018 leading player Swatch Group China partnered with leading Chinese B2C platform Tmall.

COMPETITIVE LANDSCAPE

Swatch Group China remains the leader in 2017

Swatch Group China continued to lead the category in 2017. The company competed with a variety of product lines across mechanical watches and quartz analogue watches with well-known brands including Longines, Omega, Tissot, Rado and Swatch.

International brands lead and domestic players try to catch up

Eight of the top 10 players in watches in 2017 were multinational companies. Their broad product portfolios and well-known brands appeal to consumers in China, where increasing levels of disposable income contributed to growth in retail value sales.

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