I. The Products

• Historical Overview
  • Scope of the Report
  • From Clocks to Watches
  • Advances Leading to the Development of the First Watches
  • Early Miniaturization
  • Jewels Improve Function and Accuracy
  • The Birth of Electronic Watches
  • The Quartz Crystal Watch
  • The Japanese Invasion
  • Hong Kong Hops to It, Followed by Mainland China
  • For the Swiss, a Decade of Trouble and Change
  • Good Times Again for the Swiss
• Types of Watches
  • Two Systems Power Watches
  • Mechanical Watches
  • Quartz Electronic Watches
  • Two Types of Display Faces: Analog and Digital
  • The Quartz Analog Watch
  • The Quartz Digital Watch
  • Some Types of Watches
  • Watches that Perform Additional Functions
  • Prices Vary Considerably
• Product Categories
  • Four Major Market Segments: Mass, Middle, Upper Middle, and Luxury Market
  • Mass Market Watches (Less than $50)
  • Mass Market Subsegments
    • Fun Fashion Watches
    • Sports Watches
    • Character and 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

II. The Market

• Overview of World Watch Production
  • Precise Figures Vary with Source
  • Japanese Sources Indicate Stagnant World Watch Output
  • [Table] World Watch Production: By Country (1991-1994)
  • Swiss Production Figures Higher
  • [Table] World Watch Production: By Type (1988-1994)
  • Effect of Recession, Strong Yen, and Swiss Franc
  • Product Types Produced
  • Japan Is the Leading Watch Producer
  • [Table] Worldwide Production of Watches and Movements: By Country and Type (1994)
  • Hong Kong in Second Place
  • Swiss Garner Biggest Production Percentage Increase
  • [Table] Share of Unit Output and Dollar Value of
  • Swiss Watch Exports: By Materials (1994)
• U.S. Imports
  • Note
  • Watch Imports Estimated at 240.5 Million Units in 1995
  • [Table] U.S. Watch Imports: By Units (1990-1995)
  • 1995 Dollar Value of Imports Estimated at $2.05 Billion
  • [Table] U.S. Watch Imports: By Value (1990-1995)
  • Import Figures Are Misleading
  • Definition of Gray Market
  • Changes in Unit Value of Imports in 1994
  • Watches with Precious Metal Cases Decline in Unit Volume but Increase in Value
  • Watches with Nonprecious Metal Cases Decline in Units but Increase in Value
  • Quartz Analog Watch Imports Increase Their Lead
  • Japan Leads in Import Dollar Value, Followed by Switzerland
  • [Table] Dollar Value of Watch Imports: By Country (1993 vs. 1994)
  • China Leads in Import Unit Volume
  • [Table] Unit Volume of Watch Imports: By Country (1993 vs. 1994)
• Retail Market Size and Growth
  • Note on Methodology—Two Ways to Measure Size
  • 1995 Sales Estimated at $5.81 Billion
  • Sales Increased 18% from 1991 to 19955
  • [Table] Retail Dollar Sales and Growth of Watches (1990-1995)
  • Unit Sales Increased 10.8% from 1991 to 1995
  • [Table] Retail Unit Sales and Growth of Watches (1990-1995)
  • Mass Market Retail Sales Near $2 Billion in 1994
  • [Table] U.S. Retail Unit and Dollar Watch Sales: By Market Sector (1994)
  • Middle Market Retail Sales $ 2.1 Billion in 1994
  • Upper Middle Market Retail Sales $800 Million in 1994
  • Luxury Market Retail Sales Hit $900 Million in 1994
• Factors in Future Market Growth: Overall Watch Market
  • Growth Tempered by the Recession
  • The Threat of Inflation
  • Lower Labor Costs in the Asian Rim
  • China Increasing Production
  • Technological Changes
  • Demographic Factors
  • GATT
  • What About the Gray Market?
  • Expanding Distribution Channels
  • More Watch Marketers Go Retail
  • Throw-Away Watches
  • Multiple Watch Purchases Growing
  • The Advertising Battleground Heats Up
  • The Rebirth of High-End Swiss Mechanicals
• Projected Market Growth
  • Retail Sales Could Hit $6.4 Billion by 2000
  • [Table] Projected Dollar and Unit Sales and Growth of Watches: 1995-2000
  • Favored Growth Segment
  • [Table] Projected U.S. Population Growth: By Age Group (1993-2005)
• Market Composition
  • Sales by Market Segment and Price
  • [Table] Estimated U.S. Retail Volume and Value of Watches: By Market Segment (1994)
  • Sales by Product Type
  • [Table] Retail Unit Sales: By Product Type (1994)
  • Sales by Retail Outlet
  • Fun Fashion Watches Blur Traditional Boundaries
  • Department Stores Are No. 1
  • Sales by Season
  • Sales by Region
  • [Table] U.S. Watch Sales: By Region (1994)

III. The Marketers

• The Marketers
  • Hundreds of Marketers, Few Dominant Brands
  • Several Types of Marketers
  • Multibrand Marketers
  • Timex Dominates the Mass Market
  • Japan's Seiko and Citizen Still Strong in Middle Market
  • Swiss Fashion Brands Control the Upper Middle Market
  • Swiss Brands Define the Luxury Watch Market
  • [Chart] Leading Watch Marketers and Their Brands: By Market Segment
• Marketer and Brand Shares
  • Special Note
  • Watch Purchases by Price
  • Timex Is the Leading Brand
  • [Table] Watch Purchases: By Brand
• Competitive Situation: Mass Market
  • Timex Dominates
  • Swatch Losing Its Grip on the Fun Fashion Category
  • The Night Light Craze
  • Character and Sports Logo Watches
  • The Rugged Look Strong in Plastic
• Competitive Situation: Middle Market
  • The Japanese Dominate, but Hong Kong and Swiss Invading
  • Seiko Once Clearly Dominant, Losing Share
  • Fashion, the Fastest Growing Category
  • A Formidable List of Designer Watches
  • The Swiss Attack the Middle
  • High-Tech Competition Heats Up
• Competitive Trends: Upper Middle Market
  • Swiss Big Three Dress Brands Capitalize on Market Gap
  • Other Swiss Brands Play Follow the Leader
  • TAG Heuer Leads Swiss Sport Watch Parade
  • Other Niches
• Competitive Trends: Luxury Market
  • Swiss Brands Own the Market
  • Rolex Dominates the U.S. Luxury Market
  • Mechanicals the Big Five Market Gainers
  • The Patek Philippe 150th Anniversary Watch
  • Rolex Cuts Distribution
  • Counterfeiting: Can It Be Stopped?
• Company Profile: Bulova Watch Corporation
• Company Profile: Casio Computer Company
• Company Profile: Citizen Watch Co.
• Company Profile: E. Gluck Corp.
• Company Profile: Fossil Inc.
• Company Profile: Hattori Seiko Corporation
• Company Profile: North American Watch Corporation
• Company Profile: The SMH Group
• Company Profile: TAG Heuer
• Company Profile: Timex
• Company Profile: Vendome Luxury Group
• Marketing Trends: Overall Market
  • In-Store Boutiques
  • More Marketer Retail Stores
  • Stepped Up Advertising
  • Sports Sponsorship
  • The Expanding Fun Fashion Trend
  • Bezels, Straps, Packaging, Gifts with Purchase
• Marketing Trends: Mass Market
  • Multiple Purchases Encouraged
  • Marketers' Multiline Strategies
• Marketing Trends: Middle Market
  • Price Competition Heats Up
  • Sector's Videotape
• Marketing Trends: Luxury Market
  • Sports Sponsorship Growing
  • Boutique Presentations
  • Affordable Luxury
  • Distribution Trimming
  • Price Increases and the Demise of Keystone
• General Product Trends
  • 10 Trends Spotted at Basel in 1995
• Product Trends: Mass Market
  • Seeing the Light
  • Character and Sports Logo Watches
  • Unisex Watches
  • Multifeatured High-Tech Chronos and Timers Proliferate
• Product Trends: Middle Market4
  • The Mechanical Watch Reborn
  • High-Tech Hits the Middle
  • Workmanship, Quality, Value
  • The Limited Edition Watch
• Product Trends: Luxury Market
  • Look to the Past
  • The Interwar Years Renaissance
  • The Steel Invasion and the White Wave
  • The Gender Shift
  • The Top Luxury Marketers Stay Upmarket
• Measured Advertising Expenditures
  • $109 Million Spent on Measured Advertising in 1994
  • 54 Watch Companies Advertised 99 Brands in 1994
  • Six Companies Account for Two-Thirds of All Advertising
  • Mass Market Advertising Dominated by Timex and Swatch
  • Middle Market Advertising led by Citizen and Seiko
  • Rolex the Largest Advertiser in the Luxury Market
  • Magazines the Most Popular Medium
  • The Major TV Advertisers
  • Casio Barters for Media
  • [Table] Leading Watch Advertisers: 1993-1994
• Advertising Positioning
  • A Variety of Positioning Themes Used
  • Many Luxury Market Ads Feature Retailer Logos
  • Luxury Market Advertising Themes
  • Middle Market Advertising Themes
  • Mass Market Advertising
• Consumer Promotions
  • Sports Sponsorship
  • High-End Watch Tours
  • Other Common Promotions
• Trade Advertising and Promotion
  • Much Trade Advertising Duplicates Consumer Ads
  • Mass Market Trade Promotions Are Standard
  • Sector's Unique Retail Tie-In Promotion

IV. Distribution and Retail

• Distribution and Retail
  • Distribution
• At the Retail Level: Jewelry Stores
  • Watches Can Be Profitable
  • The Importance of Brand Name
  • Type of Watches Sold
  • Prices Range Widely
  • Vendor Support Important
  • Inventories and Brands Vary
  • Jewelry Store Retail Markups
  • Turnover
• At the Retail Level: Department Stores
  • Fashion Watches Ticking Along
  • Name Brands Dominate Assortments
  • Most Retail for Less than $100
  • Fixturing and Location Within the Store
  • Gift with Purchase
  • Turnover and Gross Margins
• At the Retail Level: Discount Stores
  • Discount Stores Are the Leading Outlet
  • Price Ranges Moving Up
  • Outdoor and Rugged Looks Take the Spotlight
  • Trade-Up Models Improve Margins
  • Display Space Expanding

V. The Consumer

• The Consumer
  • Note
  • One Out of Five Purchased a Watch in the Previous Year
  • Three Out of Four Spent Less than $75 for Their Last Watch Purchase
  • Dial Face Watches Surpass Digitals
  • Digital versus Dial Face Watch Use: By Gender
  • Those Most Likely to Purchase a Watch
  • Those Most Likely to Purchase a Watch for Themselves
  • Those Most Likely to Purchase a Watch for Someone Else
  • Those Most Likely to Purchase a Digital versus a Dial Face Watch
  • Consumer Watch Purchase Preferences by Country of Origin
  • G.Q. Survey Reports Men's Watch Purchase Attitudes
  • G.Q. Respondents Giving Watches as Gifts
  • [Charts] Demographic Characteristics:
    • Favoring Purchase of a Watch in the Past 12 Months
    • Favoring Purchase of a Watch for Self in the Past 12 Months: By Price
    • Favoring Purchase of a Watch for Someone Else in the Past 12 Months: By Price

Appendix I: Tariff Schedule

Appendix II: Consumer and Watch Advertising

• Luxury Watch Ads
• Middle Market Watch Ads
• Mass Market Watch Ads

Appendix III: Addresses of Selected Watch Marketers