Market research analyst predicts the global watch market to grow steadily at a CAGR of around 8% by 2021. One of the key factors responsible for the growth of this segment is the rise in the demand for Swiss-made luxury watches. This growth in demand is attributed to the superior quality, enhanced design and craftsmanship, and technological sophistication of Swiss-made watches. Also, the rapidly growing economies and rising disposable incomes, especially in developing countries, have given better purchasing power to the consumer and are largely responsible for the shift in demand for Swiss-made luxury watches in developing countries. For instance, Piaget’s sales grew slightly even during the economic crisis owing to the growing demand for luxury watches in countries such as India, Russia, and China. Moreover, increasing brand awareness, growing western influences, and the inherent need for exclusivity will propel the growth of the global watch market during the forecast period.
APAC has accounted the extreme market-share throughout 2016 and will continue to dominate the market for the next few years. The growing number of high net worth individuals (HNWIs), expanding middle class population segment, and increased consumer propensity toward luxury products are the major reasons for this upward trend in the region. Furthermore, wider product portfolios and the launch of new and innovative products in the region will also propel market growth in the coming years.
Competitive Landscape and Key Vendors
The global watch market is highly consolidated due to the presence of few established vendors who compete mainly on the basis of product differentiation, portfolio, and pricing. Also, increasing product portfolio extension is expected to intensify the prevailing competition. Product pricing and innovation are expected to drive the market for the next few years.
Leading Vendors in the market are:
The Swatch Group
Other prominent vendors in the watch market include Audemars Piguet, Burberry, Breitling, Casio, Chanel, Chopard, Citizen, Dolce & Gabbana, Giorgio Armani, Kate Spade, Kering, Patek Philippe, Timex, Titan, Seiko, Tiffany, Hermès, and Ralph Lauren.
Segmentation by Distribution Channel and Analysis of the Watch Market
Departmental stores, hypermarkets, and supermarkets
During 2016, the speciality store segment dominated the watch market and accounted for a major part of the overall market share. These retailers focus exclusively on watches and related accessories and generally stock a wide variety of products. The brand identification factor among younger consumers is the key to the dominance of this segment in the global watch market.
Segmentation by Product and Analysis of the Watch Market
In this market study, analysts have estimated the quartz watch segment to dominate the watch market during the forecast period. These watches are highly preferred by the consumers due to their low maintenance cost. Quartz analogue watches accounted for more than half of the global sales of watches in terms of value in 2016. With the rising demand for simply traditional time keeping function watches, the quartz watch segment is expected to gain higher growth rate in the developing countries in the next four years.