aBlogtoWatch Perspective: Morgan Stanley Report On The Watch Industry’s Biggest Problems In 2019 & Beyond

Investor services firm Morgan Stanley recently released a research report on what its analysts feel are the most pressing issues that will affect the profitability of the watch industry now in 2018 as well as in 2019 and beyond While the analysts do understand the larger structure of how the watch industry more or less produces and profits from watches, the report doesn't take into consideration important details about the watch purchasing or marketing experience that is crucial to explaining certain aspects of buyer behavior I've come to understand that until recently, much of the watch industry and those who report about it for investor purposes have mostly espoused optimistic news about the current state and near future of the watch industry.

The name of the Morgan Stanley report is "DTC and the Bullwhip Effect: A bumpy transition ahead for the Swiss watch industry." Bumpy transition, eh? Well that might be an understatement, as the watch industry is facing more than mere turbulence according to Morgan Stanley While the Morgan Stanley watch industry report focuses on problems of overproduction of timepiece products and the impact of a change to a direct to consumer distribution model, it also touches on tangential topics such as outlooks for the watch industry in China as well as the enduring effect of smartwatch sales on the demand for traditional luxury timepieces No specific advice that I can see is given to the watch industry about how to reduce oversupply - with the Morgan Stanley analysts perhaps believing the watch industry will reduce production if they learn they are making too much.

The data analyzed supports my above conclusions as Morgan Stanley comes to their next point of the two difficult options the watch industry has in order to respond to overproduction woes. . Source