Watches in Spain

PROSPECTS

Continued competition from technology hampers growth

The penetration of smartphones is very high amongst the Spanish population. As smartphones have become the main option for surfing the internet, communicating, and increasingly for online shopping, consumers no longer see the convenience of owning a watch, as smartphones show the time.

Polarisation negatively affects players in the mid-priced segment

With millennials choosing cheaper ranges and older Spaniards opting for luxury ranges, those players located in the mid-priced segment are increasingly suffering. This is demonstrated by high watches seeing by far the strongest current value performance in 2019, followed by basic watches, with mid watches barely increasing at all.

Political framework hampers growth, but the future is brighter

In 2019, watches showed a slightly weaker current value performance than in the previous year, due to the uncertainty caused by the election of a new government and internal independence issues. This resulted in some consumers postponing purchases of products which were not necessities; in particular watches.

COMPETITIVE LANDSCAPE

Swatch Group España leads despite the challenge from Rolex España

Swatch Group España continued to lead watches in value terms in 2018, seeing just a negligible decline in its value share. The company’s portfolio has a unique combination of diversity and weight, offering products under the brands Hamilton, Longines, Tissot, Omega and Swatch, which target not only different price ranges, but also different age groups, including children.

Luxury players keep gaining ground as brands are seen as an investment

In line with the trend seen in 2017, in 2018 luxury brands of watches continued to gain ground. This was linked to Spaniards increasingly identifying higher-end watches as a status symbol.

Original marketing strategies support brand sales

TAG Heuer, which saw amongst the best growth rates in watches towards the end of the review period, is developing a new marketing strategy in the country, which has already proven to be successsul. First, the brand began to sponsor football games in the country.

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