The Future of Watches

The market is polarised: brands with tight control on distribution and perceived product rarity are winning; brands in denial over demand levels and complacent about product innovation are suffering Fashion watches are largely the realm of accessible luxury brands, such as Michael Kors European soft luxury players are concerned of trivialising their brands with low price points.

Rolex reigns supreme as the luxury mega-brand in watches, much like Louis Vuitton in soft luxury: a dominant position in the high-end with greater than one-third market share; high volumes and scale economies; high brand desirability, with long waiting lists for the entry-price versions; a strong second hand market; and a tight grip on distribution, with very limited discounts Elsewhere, Kering is further behind in watches and jewellery with niche brands Girard Perregaux, Ulysse Nardin, Pomellato and Boucheron Lack of price discipline is also contributing to brand erosion.

Swatch Group is making the most of other brands withdrawing to push even harder on its wholesale interfaces, with the goal of higher market share. . Source