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