Watches in Germany

2020 IMPACT

Non-essential nature of watches and lack of international visitors hit sales

The COVID-19 pandemic has been hitting sales of watches in Germany hard in 2020. Given the travel disruptions worldwide in 2020, inbound flights to Germany have reached rock bottom in 2020.

Traditional watches continue to see competition from smartwatches

Smartwatches are a major competitor for traditional watches, with these new technological gadgets with smart features strongly affecting the traditional watch industry in a transition similar to what was seen around the world in the late 1970s during the quartz innovation that almost destroyed the mechanical category. While not new, the rapid innovation and falling unit prices in smartwatches, unmatched by quartz and mechanical watches, is leaving the latter products in a difficult position.

E-commerce keeps expanding strongly in watches

Value sales through online channels had already been increasing in the years leading up to 2020, with this year having seen further impetus as a result of the closure of some of the main retail channels for these products as well as many consumers still avoiding physical stores, even once they had reopened. Some brands were forced to start selling their products online for the first time or to expand their online presence to other internet retailers’ platforms.

Fossil remains leader despite weaker performance

Fossil is the long-time leader in watches in Germany, operating on a fashion angle. Its business model revolves around sales of its own Fossil brand as well as licensing agreements with other well-known brands such as Michael Kors, which has proved to be a successful one up to now.

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