Watches in Germany

PROSPECTS

Watches volume continues to decline although value growth remains positive

For several years volume sales of watches in Germany have been declining, largely due to falling volume sales of quartz watches, although the increasing exclusivity of the products is also translating into upward price movements, which is helping drive current value growth. While, historically, threats to watches volume sales already included substitute products, particularly smartphones, in recent years hybrid watch products have created further competitive pressure.

Jewellery and watch specialist retailers create barriers to internet retailing

2019 was a dynamic year in terms of watch distribution. E-commerce sales are continuing to grow for watches in the country, as improved technology and conditions attract more consumers to online platforms such as Chrono24 and Chronext.

Solar and radio watches resonate with growing environmentalism

Solar watches have already been present on the market for a few decades, with radio-controlled watches also having been present for some time, if not as long as the solar watches. However, the latest innovations within the industry are enabling such products to perform much better and brands to offer lower prices.

COMPETITIVE LANDSCAPE

Fossil maintains its comfortable lead despite losing value share

Fossil (Europe) enjoys a comfortable lead with the biggest sales share in watches in Germany, with almost three times more share than the number two company, Rolex. Contributing to this strong lead are the different brands owned by the group or which it is selling in the local market under licence.

Rolex grows, leveraged by its brand awareness

It is widely recognised that Rolex is the most emblematic brand within watches, and the company’s value share has grown steadily in recent years, including 2018, in Germany. The growing sales of high mechanical watches due to favourable economic conditions are supporting Rolex sales growth in general, especially through the Tudor brand, which increased its share within high mechanical watches.

Cartier leverages fashionable luxury

Cartier’s watches operations are benefiting from its healthy performance in jewellery. The brand, which distinguishes itself from the remaining leaders by having stronger jewellery sales, more than three times higher, is making the most out of any synergies between the two product areas.

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