Watches in South Africa

2020 IMPACT

Economic instability and increasing reliance on smartphones for timekeeping already negative influences on consumers’ attitudes towards basic and mid watches prior to lockdown

Economic instability and an increasing dependence on digital devices such as smartphones for timekeeping purposes was already impacting demand for watches in South Africa prior to the emergence of COVID-19 and the ensuing lockdown measures, resulting in general stagnation for the category at the end of the review period. This was particularly notable amongst basic and mid segments, as low- to mid-income consumers viewed spending on watches as less of a priority compared to other essential goods, including groceries, and personal care items.

The Swatch Group retains leadership of watches in 2019 with wide portfolio, but private label continues to record good growth in basic quartz analogue

The Swatch Group (South Africa) (Pty) Ltd retained its overall lead of watches in 2019, a fairly fragmented competitive landscape, due to its lead of mechanical watches and quartz analogue watches with a wide range of price points including brands that are available in basic, mid and high watches for men and women. The company’s well-known basic quartz analogue watch Swatch continues to appeal to lower- to mid-income consumers and is the leading brand within overall watches, managing to gain marginal value share in 2019.

Swatch announces loss of sales in July 2020 due to pandemic but is hopeful of swift rebound

With store-based watch specialists forced to close during the lockdown in South Africa, and production capacity of notable Swiss manufacturers such as Swatch severely limited due to concerns over adequate social distancing, the leading watches player announced that it had been heavily impacted by the outbreak of COVID-19, claiming in July a first half-year loss in sales. The player’s 260 global stores were closed and restrictions on tourists who normally purchase its products also compounded the negative scenario.

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