San Jose, California (PRWEB) April 13, 2012
Follow us on LinkedIn – The recent economic recession has brought about a significant demographic change in the demand for luxury watches, as the momentum in the market shifted away from developed markets such as US and Europe to developing regions such as Asia-Pacific and Latin America even in countries such as Saudi Arabia, and UAE. Booming economies, increase in income levels and discretionary spending in most of the developing markets, particularly China, India, and Brazil are driving demand for expensive watches and clocks in these regions. Limited edition watches developed by leading brands such as Patek Philippe, Rolex, Richard Mille and Cartier have witnessed tremendous demand particularly in emerging markets. Piaget, registered single-digit growth in 2009 despite economic recession, mainly due to demand for its range of luxury watches in emerging economies. After posting significant decline in dollar sales in 2009, Luxury watches market in Europe and the US is now steadily regaining lost ground, owing to resurgence in global economy. With improvement in discretionary incomes, consumers are gradually shifting from away considering watches as once-in-a-lifetime purchase to buying wide array of watches to complement outfits, hobbies and their social status. The products gaining major importance are the ones with fashion statement complemented with simple designs. Various materials in different colors and finishing are used for housing and casing and for wristbands such as leather, plastic, metal and wood. In the EU, where nickel is banned for use in watches, stainless steel requiring no electroplating shows a growing demand. Digital sports watches are also gaining market share on the grounds of sport-related promotional campaigns and growing health awareness.
Rising income levels and increasing purchasing power of many young affluent professionals provides an opportunity for watch manufacturers to tap substantial demand for ultra luxury watches. As an effort towards this end, global luxury-watch brands are competing with each other to introduce innovative watches with new technology, design and materials. Key luxury watch companies across the globe are focusing on meeting all the necessary prerequisites for competing with the Swiss manufacturers such as Rolex, Swatch Group and Richemont, which lord over luxury watch segment. Presenting watches that feature advanced capabilities such as use of robots, hi-tech coating, and advanced materials such as ceramics and titanium, Swiss manufacturers have set a standard in luxury watches market. Switzerland continues to reign as a worldwide leader in watch production, banking on strength of its luxury watch business. Swiss watches are preferred for their high quality and low cost. Asia, particularly, Japan and Singapore are major markets for Swiss watches.
Price of watches depend upon the material used for making watches. For instance, the watches made by using electronic gadgets will cost lesser than the watch made by using non-electronic materials such as diamonds, gold or silver. The cost of electronic watches ranges from US$50 to US$100, while the cost of diamond watches is in thousands of dollars. Watches in luxury (US$1000-US$5000 pricing category garnering a substantial share of the market, lost their sheen during 2009, especially in mature markets such as US and Europe as consumers found it difficult to justify big spending. In direct contrast to the scenario, mass (Under $50) priced watches are fared relatively better than the expensive versions during recession. Steady sales of mass-priced watches, including plastic watches stand testimony to the recession induced change in consumer perspective over purchase of watches and clocks. However, given that the consumers search for a sturdy value proposition is a common thread that runs through all market segments, expensive watches featuring bold and innovative themes continued to find buyers despite difficult economic conditions, while classic watches found demand as collector’s items.
Europe represents the largest worldwide market, spurred by consumer confidence, emerging fashion trends and new product developments, as stated by the new market research report on Watches and Clocks. The European market is led by analog timepieces and demand for clocks, watches and components are mainly driven by fashion trends rather than technological developments. Innovations therefore, are mainly in the form of design changes. Asia-Pacific, led by China, Hong Kong, India, Taiwan and others is forecast to record the fastest gains at a strong CAGR of 3.6% though 2017.
Major players profiled in the report include Bulgari, Bulova, Cartier SA, Casio Computer Co., Ltd., Chopard, Citizen Holdings Co., Ltd., Compagnie Financière Richemont International, Fossil, Inc., Gucci Group, Hermes International, Hindustan Machine Tools, Junghans Uhren GmbH, LVMH Moet Hennessy Louis Vuitton SA, Tag Heuer International SA, Movado Group, Inc., Patek Philippe SA, Rhythm Watch Co., Ltd., Rolex SA, Seiko Holdings Corporation, Seiko Corporation of America, The Swatch Group Ltd., Timex Group USA Inc, Timex Group India Ltd., Titan Industries Ltd., among others.
The research report titled “Watches and Clocks: A Global Strategic Business Report” announced by Global Industry Analysts Inc., provides a comprehensive review of the watches and clocks markets, current market trends, key growth drivers, recent product introductions, recent industry activity, and profiles of key/niche global and regional market participants. Market estimates and projections in this study are presented for the following geographic markets – US, Canada, Japan, Europe, Asia-Pacific, the Middle East, and Latin America. Key product segments for watches analyzed include, Mass (Under $50); Middle ($50 - $299); Upper ($300 - $999) and Luxury ($1000 - $5000). The study also provides historic data for an insight into market evolution over the period 2003 through 2008.
For more details about this comprehensive market research report, please visit –
About Global Industry Analysts, Inc.
Global Industry Analysts, Inc., (GIA) is a leading publisher of off-the-shelf market research. Founded in 1987, the company currently employs over 800 people worldwide. Annually, GIA publishes more than 1300 full-scale research reports and analyzes 40,000+ market and technology trends while monitoring more than 126,000 Companies worldwide. Serving over 9500 clients in 27 countries, GIA is recognized today, as one of the world's largest and reputed market research firms.
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