|
|
- I. Executive Summary
Market Definition - Methodology
- Four Categories: Mass-Market, Middle-Market, Upper Middle-Market, Luxury-Market
- Watches Cycle up to $6.5 Billion in 2001
- Overall, Watches to Climb to $7.6 Billion in 2006
- Table 1-1: U.S. Retail Dollar Sales of Watches, 1996-2006 (dollars, percent)
- Watch Imports Valued at $2.4 Billion in 2001
- The World's Tighter Schedules
- Consumers' More Exalted Fashion Sense a Plus
- Commodity Nature of the Market
- Mid-Priced Watches Lead the Market
- Table 1-2: U.S. Retail Dollar Sales of Watches, by Price Category, 1996-2001 (percent): Mass, Middle, Upper Middle, Luxury
- At Least 300 Marketers
- Timex Leads Overall and in Mass and Middle Categories
- The Pressures of a Commodity Market
- Watch Marketers Spend $132 Million to Advertise in 2000
- Movado, Swatch, Richemont Lead Top Ten Spenders
- Department Stores, Specialty Stores Lead Watch Sales
- Most Watch Margins in 25%-55% Range
- Almost 71 Million Adults Buy Watches
- More Americans Buy Watches for Self than for Others
- Mass-Market Watches Have Biggest Audience
- Middle Age, Family Households Figure in Overall Watch Purchase
- The Products
Introduction - Market Definition
- A Brief Glossary
- Alarm
- Analog
- Ana-digital
- Anodized Aluminum
- Attachment
- Band
- Bezel
- Case
- Chronograph
- Chronometer
- Crown
- Crystal (or Lens)
- Digital
- Elapsed Time Ring
- Impact- or Shock-Resistant
- Jewels
- Pusher
- Quartz Movement
- Tourbillon
- Water-Resistant
- First Clocks Became Portable
- Watches a German Invention
- For 600 Years, Watches Have Been Fashion Accessories
- Jewels for Accuracy in Eighteenth Century
- Mass Production in Nineteenth Century
- Electronic Watches Introduced in Late 1950s
- Quartz Power Dates to 1960s
- High-Tech Features Abound
- Classed by Type of Power: Mechanical versus Quartz Electronic
- Mechanical
- Quartz Electronic
- Two Types of Watch Face: Analog and Digital
- Multifunctional Watches
- Watches Classed by Application
- Applications Overlap One Another
- Watches Classed—of Course—by Style
- The All-Important Cachet of Price
- Cases
- Waterproof Cases
- Bands and Bracelets
- Jeweled Movements
- Four Categories: Mass, Middle, Upper Middle, Luxury
- Mass-Market Watches (Less than $50)
- Middle-Market Watches ($50-$299)
- Upper Middle-Market Watches ($300-$999)
- Luxury Watches ($1,000-Plus)
- The Market
Market Size and Growth - Special Note: Watch Market Stats Difficult to Calculate
- Watches Cycle up to $6.5 Billion in 2001
- A Millennial Surge Due to Several Positives
- Mass-Market Watches in Push to $2.1 Billion
- Middle-Market Models Surpass $2.4 Billion
- Upper Middle Bracket Swells to $837 Million
- Luxury Watches Approach $1.1 Billion Mark
- Table 3-1: U.S. Retail Dollar Sales of Watches, by Price Category, 1996-2001 (dollars, percent): Mass, Middle, Upper Middle, Luxury
- Overall Units Reach 169 Million Mark
- Figure 3-1: U.S. Retail Dollar Sales of Watches, 1996-2001 (dollars)
- Mass-Priced Watches in Climb to 131 Million Units
- Middle-Market Watches in Push to 35.4 Million Units
- Upper Mid Bracket Turnover at 2.0 Million
- Luxe Watches on Rise toward 700,000 Units
- Table 3-2: U.S. Retail Unit Volume of Watches, by Price Category, 1996-2001 (units, percent): Mass, Middle, Upper Middle, Luxury
- Overall Average Price Hovers Near $38
- Table 3-3: U.S. Average Retail Prices of Watches, by Category, 1996-2001 (average price, percent): Mass, Middle, Upper Middle, Luxury
- Methodology
- Wild Fluctuations Not Unusual
- Watch Imports Valued at $2.4 Billion in 2001
- Table 3-4: U.S. Imports of Watches, by Value, 1997-2001 (dollars, percent)
- Watch Export Values Fall to $88.0 Million
- Table 3-5: U.S. Exports of Watches, by Value and Units, 1997-2001 (dollars, percent)
- The World's Tighter Schedules
- But Cell Phones Tell Time
- Consumers' More Exalted Fashion Sense a Plus
- Status
- Gadget Appeal
- Commodity Nature of the Market
- Access to Cyberspace
- Boomers and Their Empty Nests
- Seniors Exhibit Split Potential
- Generations X and Y
- Table 3-6: Projection of U.S. Population by Age, 2001-2010 (number; percent): 6 age brackets
- I Lost Another One/I Broke Another One
- The Economy: Its Effect Varies by Price Tier
- A Degree of Cyclical Sales Behavior
- Overall, Watches to Climb to $7.6 Billion in 2006
- Mass Category Will Brush $2.5 Billion
- Mid-Priced Watches to Near $2.9 Billion
- Upper Middle Category to Struggle to $947 Million
- Luxury to Maintain Best Growth; Will Achieve $1.3 Billion
- Table 3-7: Projected U.S. Retail Dollar Sales of Watches, by Price Category, 2001-2006 (dollars, percent): Mass, Middle, Upper Middle, Luxury
- Figure 3-2: Projected U.S. Retail Dollar Sales of Watches, 2001-2006 (dollars)
- Mid-Priced Watches Lead the Market
- Table 3-8: U.S. Retail Dollar Sales of Watches, by Price Category, 1997-2001 (percent): Mass, Middle, Upper Middle, Luxury
- Imports Still Account for over a Third of Retail Dollars
- Figure 3-3: Percentage of U.S. Retail Dollar Sales, by Price Category, in 2001 (percentage)
- Specialty and Department Stores Dominate Watch Sales
- Table 3-9: Share of U.S. Retail Dollar Sales of Watches and Jewelry, by Retail Channel, 1999 (percent): 6 channels
- Watches Sell Best During Spring and End-of-Year Holidays
- Special Note on Regionality Data
- South Has Most Watch Purchasers
- Southerners Also Have Greatest Tendency to Purchase
- Table 3-10: Watch Purchasers, by Region, 2000 (number; percent) population, purchasers, index
- The Marketers
The Marketers - A Watch's Marketer Can Be Hard to Identify
- At Least 300 Marketers
- Most Are Specialists
- Still Lots of Private Companies
- Heavy Foreign Presence in U.S. Market
- Vertical Integration Stressed
- Involvement in Premiums Business
- Chart of Marketers, Their Brands, and Category Involvement
- Table 41: Selected U.S. Marketers of Watches and Their Brands (listing): marketers, brands, Mass, Middle, Upper Middle, Luxury
- Special Note
- Timex Leads Overall and in Mass-Market and Middle-Market Categories
- Swatch, Loews/Bulova, Movado, Rolex Strong in Upper/Luxe Categories
- The Pressures of a Commodity Market
- Pressure to Market Watches Creatively
- Modes of Competition Vary by Price Tier
- It's Retail, Stupid
- More Marketers Take a Risk on Licensed Properties
- Foreign Marketers Crowd U.S. Arena
- Net Sales Exceed $500 Million in 2000
- Business Segmented by Region, Product Type, and Retail Stores
- Fossil Creating Its Own Niche(s)
- Fossil a Sublime Machine
- Fossil Stores
- LVMH Pushes Net Sales to $11.6 Billion Euros
- LVMH's Six Business Segments
- LVMH the World's Largest Holder of Luxury Brands
- LVMH Prefers to Control Distribution
- Other LVMH Brands
- Sales Continue Strong Trend, Reach $295 Million
- Business Segments Are Wholesale and "Other"
- Movado's Upscale Cachet—across Three Price Tiers
- Corum and Piaget Distribution Businesses Sold off
- Movado Also a Retailer
- Sales of EUR 2.9 Billion in 2000
- Two Main Divisions: Richemont and Associated Companies
- Richemont a Steady Acquirer of Luxury Brands
- Richemont a Mini-LVMH . . .
- . . . and a Resurrector of Luxury Brands
- Did Richemont Pay Too Much for LMH?
- Other Richemont Brands
- Sales of $2.6 Billion in Fiscal 2000
- Latest Strategy Involves Fashion, Young Women, Luxe Price
- Other Seiko Products
- Swatch Net Sales Jump to CHF 4.1 Billion
- The History of a Name
- Swatch's Three Business Segments
- A Varied Stable of Watch Brands
- Swatch's Low-End Brands
- Swatch's Mid-Priced Lines
- Swatch's Upper Middle and Luxe Brands
- Breguet, Glasshutte, Jaquet-Droz Are Newest Acquisitions
- Swatch's $1.1 Billion Capital Makeover
- Watches Positioned as Fashion Accessories
- Ads Move Beyond the Beauty Shot
- Licensing Continues
- More Luxe Involvement—For Lots of Reasons
- More Emphasis on Public Relations
- Same Old Trends Might Not Be Trends at All
- Watches = Accessories
- Sports Watches
- High-Tech Watches
- Steel Cases and Bracelets
- Large Cases of 40mm or Wider
- Luxury Models More Prominent
- Table 4-2: Selected New Watch Introductions, 1999-2001 (list): marketers, brands, descriptions
- Watch Marketers Spend $132 Million to Advertise in 2000
- Movado, Swatch, Richemont Lead Top Ten Spenders
- All Other Watch Marketers Spend $19 Million
- "Watches Sell Themselves"
- Watches as Fashion Accessories
- Watch Performance/Human Performance
- Look at Me
- Look at My Mechanism
- Buy an Heirloom
- A Collectible
- Nude Luxury
- Let's Obliterate Time
- Thinness
- Neon Luxury
- Celebrity Endorsement
- Discount Promos Rare
- Free Merchandise
- A Cost-Effective Positioning Tool
- Celebrity Appearances
- Sports Sponsorships
- Product Placements
- Charitable Acts
- Distribution and Retail
Distribution - Marketers Are Often Their Own Distributors
- Use of Outside Distributors
- Some Marketers Are Retailers Too
- Department Stores, Specialty Stores Lead Watch Sales
- Most Watch Margins in 25%-55% Range
- Assortment in the Tens of Thousands
- Department Store and Mass Retailer Watch Operations
- Table 5-1: Profiles of Department Store and Mass Retail Watch/Jewelry Operations, 1999 (percent; number) 5 factors
- Number of Brands Carried
- Update: The Watchmaker Shortage
- In-Store Watch Shows Can Be Lucrative
- Retail Focuses
- The "Selected Retailers" Tactic
- Watches Follow Luxe Fashion-Retailing Boom
- LVMH Tries e-Tailing—Cautiously
- Why Retailers Like the Middle-Market Category
- From Tourneau, Watch Gear
- Watch Gears and Mini-Tourneaus Piggybacked
- From LVMH, the Synchrony Chain
- The Consumer
The Consumer - Special Note on Simmons Market Research Bureau Data
- Almost 71 Million Adults Buy Watches
- Female Watch Purchasers Outnumber Male
- More Americans Buy Watches for Self than for Others
- Table 6-1: Number and Share of U.S. Adult Population Purchasing Watches in Last 12 Months, 2000 (number, percent) Purchased for Self, Someone Else
- Mass-Market Watches Have Biggest Audience
- Middle Market Audience Not Far Behind
- Upper-Middle and Luxe Audiences Account for Small Shares
- Table 6-2: U.S. Watch Purchasing by Price Category, 2000 (number; percent): 8 price categories
- Middle Age, Family Households Figure in Overall Watch Purchase
- Youth Favors Watch-Buying for Oneself
- Affluence, Families Favor Purchase of Watches as Gifts
- Table 6-3: Demographic Characteristics Favoring Purchase of Watches, 2000 (listing): 13 factors; For Oneself, For Someone Else
- Watch Purchase for Oneself, by Price: Gender, Income, Race Are Key
- Table 6-4: Demographic Characteristics Favoring Purchase of Watches for Oneself, by Amount Spent, 2000 (listing): 13 factors, 8 price breakouts
- Watch Buys for Someone Else, by Price: Gender, Income, Race Again Key
- Table 6-5: Demographic Characteristics Favoring Purchase of Watches for Someone Else, by Amount Spent, 2000 (listing): 13 factors, 8 price breakouts
- Timex, Seiko, Casio, Citizen Are Most Purchased
- Table 6-6: U.S. Purchasing of Watches, by Brand, 2000 (number, percent) 20 brands
- Overview: Demographic Patterns in Brand Purchase
- Armitron Purchase Favored by Lower Socioeconomic Status
- Bulova Purchase Shaped by Some Affluence
- Casio Presents a Mixed Purchase-Profile
- Table 6-7: Demographic Characteristics Favoring Purchase of Armitron, Bulova, and Casio Watch Brands, 2000 (listing): 13 factors
- Citizen Appeals to Singles
- Fossil Purchase Features Youth, Women, Singles
- Gitano Purchase Marked by Women, Middle Age
- Table 6-8: Demographic Characteristics Favoring Purchase of Citizen, Fossil, and Gitano Watch Brands, 2000 (listing): 13 factors
- Gucci Data Present a Less Coherent Profile
- Guess? Data Feature Women, Youth, Affluence
- Lorus Purchase: Women Featured
- Table 6-9: Demographic Characteristics Favoring Purchase of Gucci, Guess?, and Lorus Watch Brands, 2000 (listing): 13 factors
- Movado Purchase Favored by Men, Singles, Affluence
- Pulsar Purchasers Skew Older, White-Collar
- Rolex
- Table 6-10: Demographic Characteristics Favoring Purchase of Movado, Pulsar, and Rolex Watch Brands, 2000 (listing): 13 factors
- Timex Brand Most Preferred by Women, Homemakers, Middle-Agers
- Table 6-11: Demographic Characteristics Favoring Purchase of the Timex Watch Brand, 2000 (listing): 13 demographic factors
Executive Summary
A Brief History of Watches
Description of Watch Types
Watch Market Categories
Imports and Exports
Factors in Future Growth
Projected Sales
Market Composition: By Product
Market Composition: By Outlet
Market Composition: Seasonality
Market Composition: Regionality
Marketer Rankings
The Competitive Situation
Competitive Profile: Fossil, Inc.
Competitive Profile: Moet Hennessy-Louis Vuitton (LVMH Group)
Competitive Profile: Movado Group, Inc.
Competitive Profile: Compagnie Financiere Richemont AG (Richemont)
Competitive Profile: Seiko Group
Competitive Profile: Swatch SA
Marketing Trends
Product Trends
Consumer Advertising Expenditures
Consumer Advertising Positioning
Consumer Promotions
Public Relations
At the Retail Level
Retail Focus: Luxury Watch Outlets
Retail Focus: Two New Mid-Market Chains
The Consumer: Purchasing by Brand
Appendix I: Examples of consumer Advertising
Appendix II: Addresses of selected marketers
Research assistance
We can help you find what you need. Call us or write us: Need help in your search?
US: 800.298.5699
Int'l: +1.240.747.3093
Related Markets
Watches & Clocks Reports