Watches in France

PROSPECTS

Sales of traditional timepieces sluggish as smartwatches gain popularity

Watches recorded sluggish current value growth in 2019. Whilst growth in mechanical watches held up, quartz digital watches continued to see a strong decline.

Average unit prices rise as high watches sees most dynamic performance

Sales of watches priced below EUR300 continued to decline in 2019, with basic watches seeing amongst the strongest current value declines within overall watches. This is a trend similar to that seen in the US, the UK and Italy, where the interest in quartz watches weakened in recent years.

The offer needs to be renewed to attract new generations of buyers

As volume sales of watches have declined for several years, it could be argued that the younger generations have lost interest in watches, to the benefit of other devices performing similar time-giving functions, such as mobile phones. The advent of connected watches raises the question of a move away from traditional technology, coupled with the evolution of multipurpose and multi-usage instruments.

COMPETITIVE LANDSCAPE

Luxury brands expand product range to capture wider consumer base

Consumers’ purchasing power remained constrained at the end of the review period, and the median disposable income of French households is set to grow only marginally over the forecast period. In addition, Chinese tourism has been challenged by terror attacks in France and the Chinese government’s anti-corruption measures.

Citizen makes a comeback in the French market

A key watchmaker in the French market in the 1980s, Citizen gradually became much less evident in stores. However, December 2018 saw an end to this long period in the shadows, as the brand made its official return to France.

Apple likely to further disrupt watches with Apple Watch 4

Apple is likely to further disrupt the watches category. The Swiss watch industry is going to have to face the threat of Apple's new smartwatch capable of detecting heart problems, which is a feature likely to appeal to older customers.

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