Market Trends of Luxury Watch Industry
Increasing Consumer Spending on Luxury Goods
- The perception of luxury watches as a symbol of high status and wealth has played a significant role in the growth of the luxury watch market.
- Additionally, the increasing number of people earning high incomes is driving the sales of luxury goods. On the other hand, manufacturers are constantly innovating and introducing new products to cater to consumer demands. This includes incorporating the latest technologies and materials to improve the quality and functionality of watches while maintaining the durability and comfort consumers expect.
- For instance, in January 2022, Louis Vuitton expanded its smartwatch portfolio with the launch of the Tambour Horizon Light Up series. The product is developed with a custom-designed operating system, LED light for notification, and a dedicated heart-rate monitor.
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Asia-Pacific is the Largest Market for Luxury Watches
- Globally, China has become one of the most important markets for luxury watches in recent years due to its growing population of high-net-worth individuals. The country's economic growth has led to a significant increase in disposable income among its citizens, which has led to a rise in demand for luxury goods, including high-end watches.
- Rolex, Omega, Patek Philippe, Cartier, Channel, Longines, Tissot, Rado, Blancpain, and Piaget are prominent luxury watch manufacturers presently competing in the country. For instance, according to the Federation of the Swiss Watch Industry, the most recent figures show exports of Swiss watches to Mainland markets, such as China, totaled CHF 212 million (USD 2.39 billion) in 2022, holding 8.8% of the market share, followed by the United States.
- Moreover, the demand for customized and limited-edition luxury watches has increased with the rising fashion trend and the need for a unique timepiece. Sensing the demand and the growing market, manufacturers are launching limited edition luxury watches to gain consumer attention. For instance, in October 2022, the Swiss luxury watch brand Franck Muller launched limited-edition watches targeting the Indian market. Available in two variants – steel and gold and rose gold – each uniquely numbered watch has a map of India etched on the watch case.
- Moreover, the availability of premium watches through online channels has made the market more competitive. As the region is more open to tourism, tourists are more likely to purchase these high-value products over the forecast period. Owing to this factor, companies are increasing their online retail to support further the increasing sales of luxury watches in the region.
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