High-end watches saw good a performance in 2020 as Russian consumers regard them as a good investment opportunity in times of uncertainty. It is likely that this tendency will continue in 2021 as the COVID-19 pandemic will continue to be present in the year.
The offline channel decreased in 2020, whilst online sales significantly increased, with players that were already present online benefiting from COVID-19. The process of the closure of offline stores accelerated in 2020.
International brands continued to account for the majority of watch sales in Russia in 2020 as strong price competition from foreign manufacturers all but eliminated domestic watch production. Imitation and counterfeit watches, sold predominantly online, continued to threaten the growth prospects of both domestic and international players in 2020.
Watches is expected to record moderate growth over the forecast period. The main sales driver of basic and mid watches going forward will be the penetration into the regions with online sales; however, low disposable incomes of consumers of these watches will limit further growth in both categories over the forecast period.
The disruption to retail store sales caused by the COVID-19 pandemic highlighted the need for retailers to grow their e-commerce presence. Most major players are likely to accelerate their digitalisation efforts, with growth in e-commerce likely to continue as more consumers are attracted by the convenience of online shopping.
The growing popularity of smartphones and smartwatches could continue to negatively impact demand for traditional watches, essentially reducing consumers’ need for them and threatening the longer-term growth prospects of digital watches in particular. On the whole, growth for the category over the forecast period to 2026 is likely to be constrained by the longer-term headwinds of a recessionary consumer mindset, likely rises in unemployment and limited disposable income levels.
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Understand the latest market trends and future growth opportunities for the Watches industry in Russia with research from Euromonitor International's team of in-country analysts – experts by industry and geographic specialisation.
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Watches are timekeeping instruments usually worn on the wrist or carried as an accessory in a pocket. Includes wristwatches, pocket watches, and watch jewellery (gemstone-studded watches).See All of Our Definitions
This report originates from Passport, our Watches research and analysis database.
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