Luxury Watch - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts 2024 - 2029

The global luxury watch market is projected to register at a CAGR of 3.25% over the forecast period.

Key Highlights

• A luxury watch is designed of high-quality premium materials powered by advanced and complex movements and is often hand-made. Using high-quality, premium materials in watches can attract more consumers.
• Premium materials such as steel, bi-metallics, and precious metals are often associated with luxury and high-end products and can add perceived value to a watch. Moreover, these materials also often offer practical benefits such as durability, scratch resistance, and corrosion resistance, which can further enhance the attractiveness of the watch to consumers. Additionally, offering watches across various price ranges can make high-quality watches accessible to a wider range of consumers.
• Globally, consumers are interested in using quality products made with extremely advanced production technologies, materials, and methods. Thus, the growing consumer preference for high-quality, premium watches, perceived as status symbols, is the major driving factor for the luxury watches market.
• In addition, the innovation of luxury smartwatches with advanced features to monitor health conditions such as heart rate, blood, and oxygen levels, sleep, and physical activity tracking is one of the major factors strengthening the market growth. As a result, manufacturers are introducing new luxury smartwatches in the global market.
• For instance, in October 2022, luxury smartwatch maker Garmin released its latest collection of luxury smartwatches, the MARQ series. The new Garmin MARQ collection of luxury smartwatches comes with pricing on the high end of the spectrum and a titanium exterior. As per the company's statement, the model is developed with health and wellness features, including heart rate monitoring, sleep monitoring, respiration, stress tracking, and body battery energy monitoring.
• Over the medium term, 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. The use of various advertising and marketing strategies by market players has also augmented consumers' expectations of watches, resulting in market growth. Switzerland, Hong Kong, China, France, and Germany are some of the major countries producing and exporting luxury watches to the global market.
• However, the extensive distribution of counterfeited luxury goods in the marketplace has become a significant threat to luxury watch manufacturers. The growth of the luxury watch market has been affected by the presence of various counterfeit products, which customers may not be able to identify as fake.

Luxury Watch Market Trends

Rising Demand for Luxury Goods

• The perception of luxury goods, including luxury watches, as a symbol of high status and wealth, has played a significant role in the growth of the luxury watch market. Many consumers view luxury watches as a way to display their financial success and social status, making them increasingly popular in recent years. This demand has fueled the growth of the luxury watch market, with many brands offering high-end, exclusive designs to appeal to this market.
• Additionally, the increasing number of the high-income earning population associated with changing standard of living is also driving the sales of luxury goods in the market. According to the survey conducted by pre-owned watch specialist Watchfinder in 2021, luxury watch owners in the United States own 2.6 luxury watches on average.
• Manufacturers in the luxury watch industry are constantly innovating and introducing new products to cater to consumer demands. This includes incorporating new technologies and materials to improve the quality and functionality of watches while maintaining the durability and comfort consumers expect. Quality is paramount to luxury watch consumers, who expect watches to be crafted precisely and made with the finest materials. Branding also significantly drives sales, as consumers often associate luxury watch brands with prestige and status. As a result, manufacturers are focusing on launching new products to cater to consumer demands. 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.

Asia-Pacific Emerging as the Largest Consumer of 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 an increase in demand for luxury goods, including high-end watches. Rolex, Omega, Patek Philippe, Cartier, Channel, Longines, Tissot, Rado, Blancpain, and Piaget are some of the prominent luxury watch manufacturers presently competing in the country.
• 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, with the rising fashion trend coupled with the need for a unique timepiece, the country's demand for customized and limited-edition luxury watches has been increasing. Sensing the demand and the growing market, the 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. The watches have a green leather strap and are part of its hallmark Vanguard collection. In a first-of-its-kind initiative for a Swiss watch brand, these timepieces would be assembled in a high-tech facility in India in line with the government's Make in India program.
• 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.

Luxury Watch Industry Overview

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 focusing on social media platforms to engage prospective customers. Social media platforms have become an increasingly important tool for businesses to engage with their prospective customers. With the rise of social media, many companies have shifted their marketing and advertising strategies to focus more on social media platforms to reach their target audience.

For instance, in November 2020, Alibaba, Richemont, and Farfetch announced a strategic partnership to accelerate the digitization of the global luxury industry and 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.

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