The U.S. Watch Market
Oct 1, 2001
200 Pages - Pub ID: LA433062
Ask a question about this report >
Email a colleague >
Printer format >
Order by fax >
Abstract Table of Contents Search Inside Report Buy By the Section Related Reports

  1. I. Executive Summary
    Market Definition
    • Methodology

    Executive Summary
    • 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
  2. 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

    A Brief History of Watches
    • 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

    Description of Watch Types
    • 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

    Watch Market Categories
    • 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)
  3. 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

    Imports and Exports
    • 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)

    Factors in Future Growth
    • 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

    Projected Sales
    • 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)

    Market Composition: By Product
    • 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)

    Market Composition: By Outlet
    • 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

    Market Composition: Seasonality
    • Watches Sell Best During Spring and End-of-Year Holidays

    Market Composition: Regionality
    • 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
  4. 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 4﷓1: Selected U.S. Marketers of Watches and Their Brands (listing): marketers, brands, Mass, Middle, Upper Middle, Luxury

    Marketer Rankings
    • Special Note
    • Timex Leads Overall and in Mass-Market and Middle-Market Categories
    • Swatch, Loews/Bulova, Movado, Rolex Strong in Upper/Luxe Categories

    The Competitive Situation
    • 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

    Competitive Profile: Fossil, Inc.
    • 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

    Competitive Profile: Moet Hennessy-Louis Vuitton (LVMH Group)
    • 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

    Competitive Profile: Movado Group, Inc.
    • 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

    Competitive Profile: Compagnie Financiere Richemont AG (Richemont)
    • 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

    Competitive Profile: Seiko Group
    • Sales of $2.6 Billion in Fiscal 2000
    • Latest Strategy Involves Fashion, Young Women, Luxe Price
    • Other Seiko Products

    Competitive Profile: Swatch SA
    • 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

    Marketing Trends
    • 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

    Product Trends
    • 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

    Consumer Advertising Expenditures
    • Watch Marketers Spend $132 Million to Advertise in 2000
    • Movado, Swatch, Richemont Lead Top Ten Spenders
    • All Other Watch Marketers Spend $19 Million

    Consumer Advertising Positioning
    • "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

    Consumer Promotions
    • Discount Promos Rare
    • Free Merchandise

    Public Relations
    • A Cost-Effective Positioning Tool
    • Celebrity Appearances
    • Sports Sponsorships
    • Product Placements
    • Charitable Acts
  5. Distribution and Retail
    Distribution
    • Marketers Are Often Their Own Distributors
    • Use of Outside Distributors
    • Some Marketers Are Retailers Too

    At the Retail Level
    • 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

    Retail Focus: Luxury Watch Outlets
    • The "Selected Retailers" Tactic
    • Watches Follow Luxe Fashion-Retailing Boom
    • LVMH Tries e-Tailing—Cautiously

    Retail Focus: Two New Mid-Market Chains
    • Why Retailers Like the Middle-Market Category
    • From Tourneau, Watch Gear
    • Watch Gears and Mini-Tourneaus Piggybacked
    • From LVMH, the Synchrony Chain
  6. 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

    The Consumer: Purchasing by Brand
    • 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

    Appendix I: Examples of consumer Advertising
    Appendix II: Addresses of selected marketers
800.298.5294
Int'l: +1.240.747.3095
Questions?
Contact a research specialist >
Most Popular Research
Ethical Consumers and Corporate Responsibility: The Market and Trends for Green Products in Food and Beverage, Personal Care and Household Items
Pet Supplies in the U.S., 7th Edition
Natural and Organic Personal Care Products in the U.S.
Plus-Size and Big and Tall Clothing in the U.S.
Teen and Tween Grooming Products: The U.S. Market
U.S. Market for Infant, Toddler and Preschooler Furnishings and Accessories
Privacy Policy    |    Terms and Conditions    |    Site Map    |    Return Policy    |    Press    |    Help FAQs
Copyright © 2007 Packaged Facts. All Rights Reserved.
A division of Market Research Group, LLC
Trust-e Logo
Contact Us: 800.298.5294 (U.S.)
or +1.240.747.3095 (Int'l)
Hours: 7:00 a.m. to 7:00 p.m. EST Monday through Friday