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The U.S. Watch Market
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Apr 1, 1998
160 Pages - Pub ID: LA493
Attention: There is an updated edition available for this report.
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I. Executive Summary
The Products
- A Brief History of Watches
- Two Systems Power Watches: Mechanical and Quartz Electronic
- Two Types of Display Faces: Analog and Digital
- Multifunctional Watches
- Prices Vary
- Four Product Categories
- Government Regulations
The Market
- Overview of World Watch Production
- Figure 1-1: Share of World Watch Production by Country, 1996 (percent): Japan, Hong Kong, Switzerland, Others
- World Watch Production by Type
- Watch Imports Up in 1997
- Definition and Effect of Gray Market
- 1997 Retail Sales Estimated at $6,046 Million
- Table 1-1: The U.S. Market for Watches: Retail Sales, 1993-2002 (dollars)
- Unit Sales Increase 4% from 1993 to 1997
- Share of Sales by Product Category
- Department Stores Dominant
- Factors Affecting Market Growth
- A Strong Dollar and the Threat of Inflation
- Mass-Market Growth Dependent on Multiple Purchase Technological Innovation Spurs Middle Market
- Upper-Middle Market on Automatic
- Return to Precious Metals in Upper-Middle and Luxury Markets Expanding Distribution
The Marketers
- Many Marketers, Few Dominant Brands
- Types of Marketers
- Multibrand Marketers
- Mass Market Belongs to Timex
- Seiko and Citizen Control Middle Market
- Swiss Brands Control Upper-Middle Market
- Swiss Define Luxury Market
- More People Buy Timex
- Marketing Trends
- In-Store Watch Boutiques
- Marketer Retail Stores Gain Momentum More Watch Superstores
- Watches on the Web
- Sports Sponsorship
- New Product Trends
- Trends from Basel 1997
- Over $119 Million Spent on Measured Advertising in 1996
Distribution and Retail
General Distribution
- Discount Stores Lead in Unit Sales
- Name Brands Are Driving Force in Department Stores
- Trends to Watch in Jewelry Stores
- Specialty Stores Expanding Quickly
The Consumer
- Over One-Quarter of Adults Purchase Watches
- Most Likely Purchasers Are Under 40
- Purchasers of Watch for Self Are Slightly Younger
- Purchasers of Watch for Someone Else Slightly More Upscale
- $20-$49 Is Most Popular Price Range
- Share of Watch Purchasers By Brand: Timex on Top
Scope and Methodology
- Scope of Report
- Report Methodology
II. The Products
Historical Overview
- Scope of Report
- From Clocks to Watches
- Development of First Watches
- Early Miniaturization
- Jewels Improve Function and Accuracy
- The Birth of Electronic Watches
- The Coming of Quartz
- Asia Embraces Quartz Early
- Rough Times for the Swiss
- A Swiss Comeback
Types of Watches
- Two Systems Power Watches: Mechanical and Quartz Electronic
- Mechanical
- Electronic
- Two Types of Display Faces: Analog and Digital
- Quartz Analog and Quartz Digital Watches
- Multifunctional Watches
- Prices Vary
Product Categories
- Mass, Middle, Upper Middle, and Luxury
- Mass-Market Watches (Less than $50)
- Fashion Watches
- Sports Watches
- Character/Sports Logo Watches
- Middle-Market Watches ($50-$299)
- Upper-Middle-Market Watches ($300-$999)
- Luxury and High-Luxury Market ($1,000-$5,000 or More)
- Government Regulations
III. The Market
Figure 3-1: World Watch Production, 1990-1996 (number)
Overview of World Watch Production
- Estimates Vary with Source
- World Watch Production Up 47% Since 1990
- Table 3-1: World Watch Production, 1990-1996 (number)
- Japan Is Leading Watch Producer
- Table 3-2: Share of World Watch Production by Country, 1993 vs. 1996 (percent): Japan, Hong Kong, Switzerland, Others, All
- Figure 3-2: Share of World Watch Production by Country, 1996 (percent): Japan, Hong Kong, Switzerland, Others
- Swiss Production Posts Double-Digit Gain in 1996
- Table 3-3: Unit Production of Watches by Country, 1995 vs. 1996 (number and percent): Japan, Switzerland, Others, All
- World Watch Production by Type
- Figure 3-3: Share of World Watch Production by Type, 1990 vs. 1996 (percent): Analog, Digital, Mechanical
- Effects of Fluctuating Japanese Yen and Swiss Franc
U.S. Imports
- Methodology for Estimates
- Watch Imports Up in 1997
- Table 3-4: U.S. Watch Imports by Units, 1992-1997 (number)
- 1997 Dollar Value of Imports Estimated at $2,166 Million
- Table 3-5: U.S. Watch Imports by Value, 1992-1997 (dollars)
- Definition and Effect of Gray Market
- Precious Metal Case Watches Increase in Unit Volume and Value
- Nonprecious Metal Case Watches Decline in Units and Increase in Value
U.S. Retail Market Size and Growth
- Note on Methodology
- 1997 Retail Sales Estimated at $6,046 Million
- Table 3-6: Estimated U.S. Retail Dollar Sales of Watches, 1993-1997 (dollars)
- Sales Increase 10.5% from 1993 to 1997
- Unit Sales Increase 4% from 1993 to 1997
- Table 3-7: Estimated U.S. Retail Unit Sales of Watches, 1993-1997 (number)
- Mass-Market Retail Sales Top $2,056 Million in 1997
- Table 3-8: Estimated U.S. Retail Unit and Dollar Sales of Watches by Product Category, 1996 vs. 1997 (number and dollars): Mass, Middle, Upper Middle, Luxury, Total
- Middle-Market Retail Sales Over $2.2 Billion in 1997
- Upper-Middle Retail Sales Total $822 Million in 1997
- Luxury-Market Retail Sales Top $949 Million in 1997
Market Composition
- Share of Sales by Product Category
- Table 3-9: Share of U.S. Retail Volume and Dollar Value of Watches by Product Category, 1997 (number and dollars): Mass, Middle, Upper Middle, Luxury, All
- Sales by Product Type
- Table 3-10: Estimated Share of U.S. Retail Unit Sales by Product Type, 1997 (percent): Quartz Analog, Digital, Anadigital, Mechanical
- Sales by Retail Outlet
- Department Stores Dominant
- Sales by Season
- Sales by Region
- Table 3-11: Regionality of Watch Purchasing (% of adults as purchasers): South, Midwest, Northeast, West
Factors Affecting Market Growth
- A Strong Dollar and the Threat of Inflation
- Mass-Market Growth Dependent on Multiple Purchase
- Technological Changes Spur Middle Market
- Upper-Middle Market on Automatic
- Return to Precious Metals in Upper-Middle and Luxury Markets
- Expanding Distribution
- Watch Marketers Going Retail
- Effect of Gray Market
- Generation Xers Outspend Boomers
- ...But Boomers Still Favored Growth Segment
- Table 3-12: Projected U.S. Population Growth by Age Group, 1997-2007
- Figure 3-4: Projected U.S. Retail Dollar Sales of Watches, 1997-2002 (dollars)
Projected Market Growth
- Retail Sales to Hit $6.6 Billion by 2002
- Table 3-13: Projected U.S. Retail Dollar and Unit Sales of Watches, 1997-2002 (dollars and number)
IV. The Marketers
The Marketers
- Many Marketers, Few Dominant Brands
- Types of Marketers
- Multibrand Marketers
- Mass Market Belongs to Timex
- Seiko and Citizen Control Middle Market
- Swiss Brands Control Upper-Middle Market
- Swiss Define Luxury Market
- Table 4-1: U.S. Watch Market: Leading Marketers and Their Brands by Product Category
Marketer and Brand Shares
- Share Data Based on Consumer Survey
- Watch Purchasers by Price
- More People Buy Timex
- Table 4-2: U.S. Watch Market: Number and Share of Purchasers by Brand, 1997 (number and percent): 20 Brands
Competitive Situation: Mass Market
- Timex on Top
- Swatch Reinforces Efforts and Image
- Character and Sports Watches
- Digital Domain
Competitive Situation: Middle Market
- Japanese Dominant Yet Wary
- Seiko Again Shining Bright
- Fashion Growing Fast
- High-Tech Competition
Competitive Situation: Upper-Middle Market
- Swiss Spy a Niche
- TAG Heuer Gaining Ground
- Seiko's Kinetic Moving Ahead
Competitive Situation: Luxury Market
- Swiss Brands Own the Category
- U.S. Luxury Market Belongs to Rolex
- The Big Five and Others
- The Counterfeiting Dilemma
Competitive Profile: Bulova Corp
- Corporate Overview The Future Is Caravelle
- Covering All the Bases
- The Future Is Caravelle
Company Profile: Casio Computer Co., Ltd
- Corporate Overview
- Focus on Digital
- On the Cutting Edge
Competitive Profile: Citizen Watch Co., Ltd
- Corporate Overview
- Strong in the Middle
- Future Developments
Competitive Profile: Fossil, Inc.
- Creating a Tradition of Success
- Looking to the Past
- Looking to the Future
Competitive Profile: Movado Group
- Corporate Overview
- A Luxury Marketer
- Recent and Future Developments
Competitive Profile: Seiko Corporation
- Precision Is in the Name
- A Successful Overhaul
- Staying with What Works
Competitive Profile: SMH Group
- World's #1 Watchmaker
- More Than Swatch
- New Developments
Competitive Profile: TAG Heuer International S.A
- A Hot Commodity
- On the Way Up
- News from the Top
Competitive Profile: Timex Corp
- Timex on Top in U.S
- Changing with the Times
- A New Licensing Division
- Focus on Style, Fashion
- New Retail Channels
- Digital/High Tech: Indiglo and DataLink Are Big News
Competitive Profile: Vendome Luxury Group
- Corporate Overview
- Multiple Brands
- The Next Step for Vendome
Marketing Trends
- Overall Market Trends
- In-Store Watch Boutiques
- Marketer Retail Stores Gain Momentum
- More Watch Superstores
- Watches on the Web
- Sports Sponsorship
- Mass-Market Trends
- Multiline Emphasis
- Multiple Purchasing
- Middle-Market Trends
- Upper-Middle Marketers Moving Down
- Middle-Marketers Moving Up
- Luxury-Market Trends
- Increase in Sports Sponsorships
- Boutique Marketing
- Rebuilding Distribution
New Product Trends
- Overall Market Trends
- Trends from Basel 1997
- Mass-Market Trends
- Differentiation Is Key
- Focus on Fashion
- High-Tech Around the Corner
- Middle-Market Trends
- Batteries on the Way Out
- Communications Technology on the Way
- Luxury-Market Trends
- White Metal Movement
- Color and Shape of Things to Come Shift Toward Women
- Marketers Move Toward Lower End
Consumer Advertising Expenditures
- Over $119 Million Spent on Measured Advertising in 1996
- Six Companies Account for Two-Thirds of All Advertising
- Advertising Controlled by Largest Companies
- Magazines Are Prevalent Medium
Consumer Advertising Positioning
- Themes Vary
- Mass-Market Advertising
- Middle-Market Advertising
- Luxury-Market Advertising
- Retailer Logos in Luxury Ads
Consumer Promotions
- Luxury Watch Shows
- Sports Awareness
- Other Promotions
Trade Advertising and Promotions
- Trade Advertising Follows Consumer Ads
- Mass-Market Trade Promotions Standard
- Trade Promotions Becoming More Elaborate
- Basel Exposition Is Premiere Industry Showcase
V. Distribution and Retail
Distribution and Retail
- General Distribution
At the Retail Level: Mass-Market Outlets
- Discount Stores Lead in Unit Sales
- Increasing Price Ranges
- Margins Gaining Ground
- Drugstores Moving Watches
- Drugstores Position Watches Well
- Supermarkets Also a Factor
At the Retail Level: Department Stores
- Name Brands Are Driving Force
- Price Ceiling Set at $100
- In-Store Positioning
- Gifts with Purchase
- Retail Figures
At the Retail Level: Jewelry Stores
- Percentage of Sales
- Watch Types Sold
- Brand Name Power
- Price Ranges
- Watchmakers On Duty
- Marketer Support
- Inventory Varies
- Retail Markups and Margins
At the Retail Level: Specialty Stores
- Specialty Stores Expanding Quickly
- Specialty Stores Offer Better Service
- Trend Profile: Watch World
VI. The Consumer
The Consumer
- Note on Simmons Market Research Bureau Data
- Over One-Quarter of Adults Purchase Watches
- Table 6-1: Number and Share of U.S. Adult Population Purchasing Watches in Last 12 Months, 1997 (number and percent): Self/Someone Else, Self, Someone Else
- Most Likely Purchasers Are Under 40
- Purchasers of Watch for Self Are Slightly Younger
- Purchasers of Watch for Someone Else Slightly More Upscale
- Table 6-2: Demographic Characteristics Favoring Purchase of Watches by Who Purchased For, 1997 (U.S. Adults): Self/Someone Else, Self, Someone Else
- $20-$49 Is Most Popular Price Range
- Table 6-3: Share of U.S. Watch Purchasers by Amount Spent and Who Purchased For (percent): Self/Someone Else, Self, Someone Else Watch Purchasers by Price: Under $20, $20-$49, $50-$74
- Table 6-4a: Demographic Characteristics Favoring Purchase of Watch for Self or Someone Else: By Price, 1997 (U.S. Adults): Under $20, $20-$49, $50-$74
- Watch Purchasers by Price: $75-$99, $100-$199, $200-$299
- Table 6-4b: Demographic Characteristics Favoring Purchase of Watch for Self or Someone Else: By Price, 1997 (U.S. Adults): $75-$99, $100-$199, $200-$299
- Watch Purchasers By Price: $300-$499, $500+
- Table 6-4c: Demographic Characteristics Favoring Purchase of Watch for Self or Someone Else: By Price, 1997 (U.S. Adults): $300-$499, $500+
- Share of Watch Purchasers By Brand: Timex on Top
- Table 6-5: Watch Purchasers by Brand and Who Purchased For: Share of Total U.S. Adult Population, 1997 (percent): Self/Someone Else, Self, Someone Else
- Indicators and Resistors for Timex
- Indicators and Resistors for Casio
- Indicators and Resistors for Seiko
- Table 6-6a: Demographic Characteristics Favoring Purchase of Watch for Self or Someone Else: By Brand, 1997 (U.S. Adults): Timex, Casio, Seiko
- Indicators and Resistors for Guess
- Indicators and Resistors for Armitron
- Table 6-6b: Demographic Characteristics Favoring Purchase of Watch for Self or Someone Else: By Brand, 1997 (U.S. Adults): Guess, Armitron, Citizen
- Indicators and Resistors for Citizen
- Indicators and Resistors for Fossil, Pulsar, and Lorus
- Table 6-6c: Demographic Characteristics Favoring Purchase of Watch for Self or Someone Else: By Brand, 1997 (U.S. Adults): Fossil, Pulsar, Lorus
- Indicators and Resistors for Bulova, Gitano, and Gucci
- Table 6-6d: Demographic Characteristics Favoring Purchase of Watch for Self or Someone Else: By Brand, 1997 (U.S. Adults): Bulova, Gitano, Gucci
- Indicators and Resistors for Swatch, Rolex, and Hamilton
- Table 6-6e: Demographic Characteristics Favoring Purchase of Watch for Self or Someone Else: By Brand, 1997 (U.S. Adults): Swatch, Rolex, Hamilton
- Indicators and Resistors for Movado, TAG Heuer, and Tissot
- Table 6-6f: Demographic Characteristics Favoring Purchase of Watch for Self or Someone Else: By Brand, 1997 (U.S. Adults): Movado, TAG Heuer, Tissot
- Indicators and Resistors for Omega, Rado, and Other Brands
- Table 6-6g: Demographic Characteristics Favoring Purchase of Watch for Self or Someone Else: By Brand, 1997 (U.S. Adults): Omega, Rado, Other
Appendix I: Examples Of Consumer Advertising
Appendix II: Addresses Of Selected Marketers
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