PUBLISHER: DataM Intelligence | PRODUCT CODE: 1336684
PUBLISHER: DataM Intelligence | PRODUCT CODE: 1336684
Global Watch Market reached US$ 71.6 billion in 2022 and is expected to reach US$ 99.1 billion by 2030, growing with a CAGR of 4.9% during the forecast period 2023-2030. The growing focus on brand awareness and status symbols is expected to boost market growth. Luxury watches are usually seen as status symbols and personal accomplishment signals. The need for brand identification and the prestige of having luxury watches drives the market.
Renowned luxury watch brands with a long history and a good reputation have a competitive advantage when it comes to capturing consumer demand. In 2022, Asia-Pacific watch market will account for more than 1/3rd of the global market. Changing consumer behavior and rising disposable income, particularly in major nations such as China, India and Japan, are driving Asia-Pacific market growth.
The Rising Product Innovations
As consumer awareness of environmental sustainability grows, watches manufactured from recycled materials or sustainable alternatives such as bamboo, wood or recycled plastics are being developed. Materials science advancements have resulted in the usage of lightweight and durable materials such as titanium, ceramic and carbon fiber, increasing the utility and aesthetics of watches.
Seiko Watch of America has announced the release of two extraordinary U.S. Exceptional Editions honoring the outdated "Seigaiha" or "blue sea waves" design in August 2021. The watches, which are only available in U.S. market, combine the greatest watch innovation with hundreds of years of custom and their work.
The Growing Demand for Luxury Goods
To meet consumer needs, manufacturers in the luxury watch sector are continually developing and introducing new goods. It involves using new technologies and materials to improve watch quality and performance while keeping the durability and comfort that customers expect. Luxury watch consumers want watches to be precisely designed and made from the finest materials.
Branding also has a big impact on sales since buyers frequently identify luxury watch brands with prestige and status. As a consequence, manufacturers have focused on introducing new products to meet consumer demand. For example, Louis Vuitton increased their smartwatch collection in January 2022 with the introduction of the Tambour Horizon Light Up series. The product includes a custom-designed operating system, an LED notification light and a specialized heart-rate monitor.
Counterfeiting and Replica Watches
Counterfeit and imitation watches are a worldwide problem, with production hubs mostly concentrated in nations with inadequate intellectual property protection. Counterfeiters make use of the online marketplace, where they can operate anonymously and easily reach buyers all over the world. The availability of low-cost counterfeit and replica watches on the market can put pressure on real watch brands to cut their pricing, reducing profit margins.
With the anonymity and ease of access provided by the Internet, counterfeiters may market and sell their products, making it difficult for authorities to efficiently monitor and shut down these unlawful businesses. Counterfeit and replica watches divert sales away from authentic watch brands, resulting in direct revenue and profit losses for genuine manufacturers.
During the pandemic, economic uncertainty and significant job losses affected consumer expenditure on discretionary products such as luxury watches. Non-essential purchases were postponed by many customers, affecting overall watch sales. As there were less opportunities for socializing and travel during the epidemic, consumer preferences switched toward more casual functional watches rather than dressier or luxury watches.
To deal with the COVID-19 pandemic, wristwatch manufacturers have improved and introduced products that detect COVID-19 early signs in individuals. For example, Apple Inc. released the Apple Watch Series 7 in September 2021, which includes heart rate and blood oxygen sensors to detect early indicators of respiratory illnesses such as influenza and COVID-19. Owing to the growing pricing of chipsets used to produce watches, smart wearables and smartwatches have grown more expensive in comparison to 2020.
Russia- Ukraine War Impact
Some watch brands have manufacturing plants or suppliers in the affected areas. Political tensions and supply chain disruptions could have an influence on their operations and manufacturing capacity. The watch market uses a wide range of materials, some of which come from Russia, Ukraine or close nations. Supply disruptions in certain materials could have an impact on output and pricing.
Mercury, for example, the distributor of Patek Philippe, Rolex, Hublot and other premium brands, has increased or tripled the cost of available models in order to prevent having empty shop windows in the short term. Secondary-market players and pawn shops have also flourished, but there is no longer a legitimate, structured market for luxury watches.
The global watch market is segmented based on product, price range, distribution channel, end-user and region.
The Favorable Valued-Added Services in the Online Distribution Channel
Online distribution channel is expected to grow at a significant rate and hold about 30.2% of the global watch market during the forecast period 2023-2030. Consumers prefer to buy luxury products through online channels because of useful value-added services such as cash-on-delivery, rapid return options, secure transactions and integrated and centralized customer support.
To reduce operational expenses and improve earnings, key firms are setting up online retail systems. Companies like Rolex Inc., Fossil Group and Ralph Lauren have a strong web presence and sell their items online to expand their market reach. The distribution channel also allows producers to offer their items on a global scale.
The Strong Demand for Smartwatch in North America
North America is anticipated to have a significant growth holding around 1/4th of the global watch market during the forecast period 2023-2030. Several manufacturers in the region are incorporating this 'healthcare factor' to distinguish smartwatches from smartphones in terms of operation and to overcome the 'product objective challenge,' because consumers need a reason to purchase a wrist gadget that provides everything smartphones already do.
The recent version of Apple Watch offers to take electrocardiograms or ECGs, a capability approved by U.S. Food and Drug Administration (FDA). Features like this, that offer access to real-time data on this scale, have the potential to change healthcare operations, driving the region's watch industry. It was also endorsed by Ivor Benjamin, a cardiologist and the president of the American Heart Association.
The major global players include: Fossil Group Inc., Citizen Watch Co. Ltd, Titan Company Limited, Apple Inc., Seiko Holdings Corporation, The Swatch Group Ltd, Casio Computer Co. Ltd, Daniel Wellington AB, Timex Group and Rolex SA.
The global watch market report would provide approximately 69 tables, 65 figures and 203 Pages.
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