Watches in Italy

PROSPECTS

High mechanical watches regarded as an investment and especially sought-after by international shoppers

Growth in 2019 continued to be driven by high mechanical watches. High-end or luxury watches represent a secure investment due to their strong resale value.

Basic and mid watches challenged by economic uncertainty and wearable electronics

Basic and mid watches saw sales slow down further in 2019 due to continually weakening demand among lower-income Italian consumers, who remain cautious with regard to non-essential spending. These watches are losing their appeal, especially among millennials who are gradually switching to wearable electronics.

Specialist stores benefit from personal touch but internet retailing gains due to its convenience and lower prices

Jewellery and watch specialist retailers remains the most important channel for watches in Italy as consumers like to see and try out watches, especially more expensive ones, before they buy. Key drivers of watches sales are the design followed by the price and the brand name, although the advice or word-of-mouth recommendation of family and friends is also important to Italians.

COMPETITIVE LANDSCAPE

Demand for investment watches keeps Rolex the leading brand

Rolex continued to lead value sales of watches in 2018, increasing its value share and widening the gap with other brands due to ongoing demand for high watches and premium quality brands, particularly as investment purchases. A Rolex watch is considered to be of the highest precision and quality and is an aspirational item, remaining the most recognised luxury Swiss watch brand in Italy thanks to its broad high-end collection.

Targeted marketing and design benefit leading players

After the leading brand, the top players in the competitive landscape are international brands battling it out to maintain their positions. The best performing brands in 2018 in terms of value sales growth were Officine Panerai and Vacheron Constantin, both from Cie Financière Richemont SA, and Breitling.

Daniel Wellington’s online promotion approach attracts

After seeing significant growth earlier in the review period, Daniel Wellington’s value growth stabilised slightly in 2018 but remained notable. The brand continues to attract millennial consumers thanks to its affordability, minimalist style, strong image and fashionable, customisable design.

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