|Study Period:||2016 - 2026|
|Fastest Growing Market:||Asia Pacific|
|Largest Market:||Asia Pacific|
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The luxury watch market was valued at USD 23.623 billion in 2020, registering a CAGR of 3.25% during the forecast period, 2021-2026.
As the COVID-19 pandemic affected America and other major countries in Europe and Asia, which were the major consumers of luxury watches, the market has seen decreased demand and slowed growth because of various restrictions imposed on movement and cautious spending habits of people. In 2020, the Swiss watch shipment fell by around 22% in value terms, while it declined by 33% in volume terms. In February, the export declined by around 9%, which further escalated during the second quarter, as they declined by over 61%. With situations improving, there was a gradual slowdown in export declines. In the last quarter of the year, there was a decline of 4% only due to ease on the lockdown measure and various other factors.
Globally, the growing consumer preference for high-quality, premium watches, which are perceived as status symbols, is the major driving factor for the luxury watches market. Consumers are interested in using quality products made with extremely advanced production technologies, materials, and methods.
The use of accessories to improve one’s looks is a common fashion trend. This factor is, therefore, contributing toward the growth of the luxury watch market. The use of various advertising and marketing strategies by the market players has also augmented consumers' expectations from watches, resulting in market growth.
The use of high-quality, premium materials, like steel, bi-metallics, and precious metals, attract more consumers. These are available in various price ranges. Some countries producing and exporting luxury watches include Switzerland, Hong Kong, China, France, and Germany. These watches are distributed globally via trade and different retail channels.
Scope of the Report
Luxury watches are manually manufactured watches of extraordinarily high quality and at a premium price. The luxury watch market is segmented by type into analog watch and digital watch. By end user, the market covers revenues generated through women, men, and unisex variants. The market also includes retail sales of the product through both online and offline channels. Additionally, the study covers market revenue in major countries of the regions, including North America, Europe, Asia-Pacific, South America, and Middle-East and Africa. For each segment, the market sizing and forecasts have been done on the basis of value (USD million).
|By End User|
|By Distribution Channel|
|Offline Retail Stores|
|Online Retail Stores|
Key Market Trends
Rising Demand for Luxury Goods
The preference for luxury goods, including watches, mostly among men, has created a surge in the Swiss watch industry. Although the luxury market for watches is mature, any brand may experience sudden growth. The increase in brand awareness, the influence of the western world, and the inherent need for exclusivity are some of the factors that contribute to the increased demand for luxury watches. Switzerland continues to be a worldwide leader in watch production, backed by the strength of its luxury watch business. In Asia, Japan and Singapore are the key markets for Swiss watches. Garmin expanded its presence in India by launching its premium luxury watch collection, called the Marq. These watches have preloaded features, such as built-in storage for music, Garmin Pay integration, smart notifications, and daily activity tracking. They also feature wrist-based heart rate and Pulse Ox2 sensors.
A new trend among collectors is purchasing stylish timepieces that do not work, prioritizing style over substance. As per Retail Dive, in August 2017, USD 5 million was spent on Rolex watches at Heathrow Airport. The sales in the luxury watches and jewelry category increased by a staggering 74%. Thus, the growing preference for luxury goods is anticipated to drive market growth during the study period.
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Asia-Pacific Emerged as the Largest Consumer of Luxury Watches
Globally, China is one of the most competitive markets, as it offers huge potential for the manufacturers of luxury watches to acquire and compete. Rolex, Omega, Patek Philippe, Cartier, Channel, Longines, Tissot, Rado, Blancpain, and Piaget are some of the prominent luxury watch manufacturers. According to the Federation of the Swiss Watch Industry, the most recent figures show exports of Swiss watches to mainland China totaled CHF 2.1 billion (USD 2.39 billion) from January to November 2020, an increase of 17.1% from the same period in 2019. Whereas in countries like India, the luxury watch market was initially targeted solely at men. However, with the increasing rate of female participation in the workforce, the demand for female and unisex luxury watches increased. Sensing the demand and the growing market, in 2017, the Switzerland-based watch manufacturer, Frederique Constant, introduced the newest addition to the most feminine collection of the brand, Art Déco, in India. The timepiece reflects a perfect blend of elegance and style, with elaborate decoration, thereby widely supporting the market penetration.
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The luxury watch market is highly competitive, with the presence of both global and domestic players. The major players in the market include Rolex SA, The Swatch Group Ltd, Compagnie Financiere Richemont SA, Patek Philippe SA, Audemars Piguet, and Richard Mille. Key players are now also focusing on social media platforms and online distribution channels for the online marketing and branding of their products to attract more customers. For instance, in November 2020, Alibaba, Richemont, and Farfetch announced a strategic partnership to accelerate the digitization of the global luxury industry and to give luxury brands better access to the Chinese market. As per the deal, Alibaba and Richemont are expected to invest USD 300 million each in the luxury e-commerce platform Farfetch.
- In April 2021, Hermes launched New Men's Watch Collection Hermes H08. The collection has five distinct 39 mm references. Four in titanium and one piece with a graphene-filled composite case. The original cushion-shaped collection had a sporting-inspired design that mingles taut and flowing lines, while a case with softened edges frames the circular dials.
- In January 2021, LVMH Moet Hennessy Louis Vuitton SE announced that it completed the acquisition of Tiffany & Co., a global luxury jeweler. This iconic US jeweler acquisition will deeply transform LVMH’s Watches and Jewelry division and complement LVMH’s 75 distinguished Maisons.
- In November 2020, PETA had long been campaigning for the ban of the use of animal skin for use in watch straps. Owing to this factor, the company presented MY BOY∙FRIEND watch with a large selection of straps to personalize it. The new watch contains a high-precision quartz movement housed in a case that features a bezel set with 62 brilliant-cut diamonds.
Table of Contents
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
3.1 Market Overview
4. MARKET DYNAMICS
4.1 Market Drivers
4.2 Market Restraints
4.3 Porter's Five Forces Analysis
4.3.1 Threat of New Entrants
4.3.2 Bargaining Power of Buyers/Consumers
4.3.3 Bargaining Power of Suppliers
4.3.4 Threat of Substitute Products
4.3.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
5.1 By Type
5.1.1 Analog Watch
5.1.2 Digital Watch
5.2 By End User
5.3 By Distribution Channel
5.3.1 Offline Retail Stores
5.3.2 Online Retail Stores
5.4 By Geography
5.4.1 North America
126.96.36.199 United States
188.8.131.52 Rest of North America
184.108.40.206 United Kingdom
220.127.116.11 Rest of Europe
18.104.22.168 Rest of Asia-Pacific
5.4.4 South America
22.214.171.124 Rest of South America
5.4.5 Middle-East and Africa
126.96.36.199 South Africa
188.8.131.52 Saudi Arabia
184.108.40.206 Rest of Middle-East and Africa
6. COMPETITIVE LANDSCAPE
*List Not Exhaustive
6.1 Most Active Companies
6.2 Most Adopted Strategies
6.3 Market Share Analysis
6.4 Company Profiles
6.4.3 Hermes International SA
6.4.4 Kering Group
6.4.5 Rolex SA
6.4.6 Compagnie Financiere Richemont SA
6.4.7 Patek Philippe SA
6.4.8 The Swatch Group Ltd
6.4.9 Breitling SA
6.4.10 Audemars Piguet
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
8. IMPACT OF COVID-19 ON THE MARKET
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Frequently Asked Questions
What is the study period of this market?
The Luxury Watch Market market is studied from 2016 - 2026.
What is the growth rate of Luxury Watch Market?
The Luxury Watch Market is growing at a CAGR of 3.25% over the next 5 years.
Which region has highest growth rate in Luxury Watch Market?
Asia Pacific is growing at the highest CAGR over 2021- 2026.
Which region has largest share in Luxury Watch Market?
Asia Pacific holds highest share in 2020.
Who are the key players in Luxury Watch Market?
Rolex SA, The Swatch Group Ltd, Compagnie Financiere Richemont SA , Patek Philippe A, Audemars Piguet are the major companies operating in Luxury Watch Market.