Luxury watches are expected to be far more expensive than regular timepieces. It represents a person's status insignia. Limited availability, social distinction, exclusivity, outstanding quality, and high costs are all typical characteristics of luxury timepieces.
Covid-19 Impact & Market Status
According to a review of the COVID-19 pandemic, people are experiencing significant losses in their businesses and a temporary halt in export and import activity, which will have a negative influence on market growth in 2020. The Luxury Watches Market is projected to restore its place in the luxury goods market as vaccination and lockdown measures proliferate around the world to stop the virus from spreading. According to a review of the COVID-19 pandemic, people are experiencing significant losses in their businesses and a temporary halt in export and import activity, which will have a negative influence on market growth in 2020. The Luxury Watches Market is projected to restore its place in the luxury goods market as vaccination and lockdown measures proliferate around the world to stop the virus from spreading.
The fine jewelry and watch industries experienced revenue declines of 10 to 15 percent and 25 to 30 percent, respectively, as uncertainty caused by the COVID-19 pandemic rippled across the globe and short-circuited demand, putting further strain on slow-to-adapt players and crystallizing emerging market trends. The delayed shift to digital in the jewellery and watches industries—which lags significantly behind other luxury categories—was exposed by the closure of physical retail for extended periods. Online sales account for 13% of the worldwide market for fine jewels and only 5% for watches. Meanwhile, the unexpected halt in worldwide travel hindered fine jewelry and watch purchases made by travellers, which accounted for around 30% of the pre-pandemic market.
While the market will undoubtedly remain challenging for both the jewellery and watch industries in the coming years, the next five years will also provide substantial opportunity for firms to rewrite the rule book in terms of products, distribution structures, and engagement tactics. Those who anticipate, or at the very least accept, market developments can help to establish a new gold standard. After the pandemic has passed, the market is likely to recover. However, it is possible that it will no longer follow the predicted growth path, as lower discretionary incomes as a result of the impending economic crisis may deter consumers.
Based on the Product Type
Mechanical quartz and other watch types are divided in the global Luxury Watches market. In 2020, the mechanical quartz segment accounted for 75.4 percent of the global Luxury Watches market. Luxury mechanical watches are chosen over digital watches because they are more sophisticated and incorporate all of the twentieth century's watchmaker expertise and knowledge. Luxury mechanical timepieces feature a lot more microscopic moving components and need a lot of time and effort to make. It's a mechanical marvel in an analogue world, and it's a fantastic engineering marvel. The majority of luxury mechanical watch buyers are picky, so they pay attention to the smallest details and value history and tradition.
Based on the Gender Type
Women's luxury watches and men's luxury watches make up the global Luxury Watches market. The market for women's luxury watches was valued at US $ 24.66 billion in 2020, and it is predicted to expand to US $ 32.24 billion by 2027, with a CAGR of 3.90 percent between 2021 and 2027. In contrast to Asian and European purchasers who value watches on a cultural level, American women are preoccupied with the mechanical aspects of how watches work. Women adore diamond-encrusted gold watches, thus several luxury watchmakers are promoting golf or diamond watches. The rise in the number of women in the workforce is driving the growth of the Luxury Watches Market throughout the predicted period.
Based on the Distribution Channel
The worldwide Luxury Watches market is divided into two categories: online distribution and offline distribution. During the forecast period, the online distribution channel segment of the global luxury watches market is estimated to rise at a faster CAGR of 6.5 percent. Because of the presence of a well-developed E-commerce platform, the online distribution channel of the global luxury watches market is growing at the fastest rate. Because online shopping is more convenient for customers, the worldwide luxury watch market has grown dramatically.
Asia-Pacific has risen to become the world's largest consumer of luxury watches
During the forecast period, Asia Pacific will lead the global Luxury Watches market. China is one of the most competitive markets in the world, offering luxury watchmakers huge acquisition and economic opportunities. Rolex, Omega, Patek Philippe, Ferrari, Chanel, Longines, Tissot, Rado, Blancpain, and Piaget are some of the most well-known luxury watch brands. According to the Federation of the Swiss Watch Industry, Swiss watch exports to mainland China totaled CHF 2.1 billion (USD 2.39 billion) from January to November 2020, up 17.1 percent from the same period last year. The luxury watch market in countries like India was predominantly aimed toward men. The demand for female and unisex luxury timepieces has expanded as more women enter the workforce. In addition, Europe held the second biggest market share of 30.0 percent in 2019 and will continue to do so throughout the forecast period.
Increase in the number of high-net-worth individuals, more disposable income, and increased expenditure on high-quality items are some of the factors driving the worldwide Luxury Watches Market growth over the forecast period.
From 2021 to 2027, the luxury watches market is expected to grow at a CAGR of 4.50%, from $43,661.8 million in 2019 to $51,317.3 million in 2028. The growing customer preference for high-quality, expensive watches that are seen as status symbols is the primary driving force behind the luxury watch market globally. Consumers want high-quality items manufactured using cutting-edge manufacturing technology, materials, and procedures.
Accessorizing to boost one's appearance is a popular fashion trend. As a result, this element is assisting in the expansion of the luxury watch market. The market participants' employment of various advertising and marketing techniques has increased customers' expectations of watches, resulting in market growth.
Steel, bi-metallic, and precious metals are examples of high-quality, premium materials that attract more customers. These come in a variety of price levels. Switzerland, Hong Kong, China, France, and Germany are among the countries that manufacture and export luxury timepieces. These timepieces are sold through a variety of trade and retail outlets around the world.
The Swiss watch business has benefited from a spike in demand for luxury products, particularly watches, among men. Despite the fact that the luxury watch market is mature, any brand might see unexpected growth. The rise in brand recognition, the western world's impact, and the intrinsic need for exclusivity are all contributing causes to the rising demand for luxury timepieces. Switzerland is the world leader in watchmaking, thanks to the strength of its luxury watch industry.
Japan and Singapore are the two most important markets for Swiss watches in Asia. Garmin increased their foothold in India by introducing the Marq, a premium luxury watch range. Built-in music storage, Garmin Pay integration, smart notifications, and daily activity tracking are among the preinstalled features of these watches. They also have heart rate and pulse oxygen2 sensors on the wrist.
With both global and domestic companies, the luxury watch market is fiercely competitive. Rolex SA, The Swatch Group Ltd, Compagnie Financiere Richemont SA, Patek Philippe SA, Audemars Piguet, and Richard Mille are among the market's leading participants. To attract more clients, key businesses are now relying on social media platforms and online distribution channels for online marketing and branding of their products. Alibaba, Richemont, and Farfetch, for example, established a strategic alliance in November 2020 to advance the digitization of the global luxury business and provide luxury brands with improved access to the Chinese market.
Latest Innovations in the Luxury Watch Market: a Snapshot
- In April 2021, Hermes unveiled the Hermes H08 New Men's Watch Collection. There are five unique 39 mm references in the collection. Four pieces are made of titanium, while one is made of a graphene-filled composite casing. The original cushion-shaped collection had a sporting-inspired design that combined taut and flowing lines, with a softened-edged case framing the circular dials.
- LVMH Moet Hennessy Louis Vuitton SE completed the acquisition of Tiffany & Co., a global luxury jeweller, in January 2021. LVMH's Watches and Jewelry sector will be transformed by this historic US jeweller acquisition, which will complement the company's 75 prestigious Maisons.
- PETA had long campaigned for the use of animal skin in watch straps to be banned by November 2020. Because of this, the manufacturer provided a vast assortment of straps to customise the MY BOYFRIEND watch. A high-precision quartz movement is placed in the new watch's casing, which has a bezel encrusted with 62 brilliant-cut diamonds.
Luxury Watches Market Scope
|Forecast Unit||Value (USD)|
|Revenue forecast in 2028||USD $51,317.3 million|
|Growth Rate||CAGR of 4.50% during 2021-2028|
|Segment Covered||Type, End User, Distribution Channel, Regions|
|Regions Covered||North America, Europe, Asia Pacific, Middle East and Africa, South America|
|Key Players Profiled||Rolex SA, The Swatch Group Ltd, Compagnie Financiere Richemont SA, Patek Philippe SA, Audemars Piguet, and Richard Mille|
Key Segments of the Luxury Watch Market
- By Type
- Mechanical Watches
- Electronic Watches
- By End User
- By Distribution Channel
- Online Store
- Single Brand Store
- Multi Brand Store
- By Region
- North America
- Rest of Europe
- Hong Kong
- South Korea
- Rest of Asia-Pacific
- Latin America
- Middle East