• Two Categories: Watches and Clocks
• Ways to Class Watches
• Clock Types
• Overall Market Size and Growth
• Watches and Clocks Valued at $7.4 Billion in 2003
• Watches/Clocks on Uptick As Economy Stirs
• Watch Category Approaches $6.4 Billion
• Sports Watches in Record Jog to $1.7 Billion
• Kids’ Watches Party on to $401 Million
• Clocks Ring in $1 Billion
• Table 2-1: U.S. Retail Dollar Sales of Watches and Clocks, 1998-2003
• Table 2-2: U.S. Retail Dollar Sales of Watches and Clocks, Percentage Change in Sales 1998-2003
• Watches Still Account for Lion’s Share of Dollars
• Table 2-3: Share of U.S. Retail Dollar Sales of Watches and Clocks, 1998-2003

• Wild Fluctuations to Be Expected
• Watch/Clock Imports at $3.7 Billion in 2003
• Watch/Clock Exports at $207 Million
• Imports Account for Half of U.S. Watch/Clock Retail Dollars
• Table 2-4: Value of Imports and Exports of Watches, Clocks, and Parts, 2002-2003

• Can the World Get Any Busier?
• But Cell Phones Tell Time, Too
• Retail Scene Tough, But Fashion Accessories on a Roll
• Some Cyclical Sales Behavior: Mass and Luxury Are Best Protected
• Boomers Throw Out the Kids
• Teens/Tweens Increasingly Targeted
• Sports Folk
• Table 2-5: Projected U.S. Population, by Age, Featuring Baby Boomer and Teen/Tween Brackets, 2003-2010

• Watch/Clock Sales to Tally $8.6 Billion in 2008
• Watch Sales Alone to Reach $7.4 Billion
• Sports Watches Will Climb to $2 Billion
• Kids’ Watches in Push to $504 Million
• Clocks in Dogged March to $1.1 Billion
• Table 2-6: Projected U.S. Retail Dollar Sales of Watches and Clocks, 2003-2008
• Figure 2-1: Projected Total U.S. Retail Dollar Sales of Watches and Clocks, 2003-2008

• Watch/Clock Marketers Spend a Tiny $159 Million in 2002
• Rolex Leads Top Five Watch Advertisers
• Only Two Clock Marketers Spend Over $1 Million

Chapter 3: The Watch Category

• The Products
  • Four Watch Price Segments: 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)
• Watches Also Classed by Power Source, Face Type, Function, Application, and Style
  • Power: Mechanical versus Quartz Electronic
  • Face: Analog versus Digital
  • Function
  • Application
  • Infinite Styles
  
  
• The Cachet of Price
• About Watch Cases
• Waterproofing the Case
• Attachments: Bands/Bracelets/Straps/Cuffs
• Jeweled Movements
• Licensing

• Watches Rally to $6.4 Billion in 2003
• Now the Good News: The Cycle Returns to Gains
• Mass-Priced Watches (Under $50) Continue Push, Break $2.3 Billion Mark
• Mid-Priced Watches ($50-$299) Struggle Back to $2.2 Billion
• Upper Middle Segment ($300-$999) Stuck at $746 Million
• Luxury Watches ($1,000+) Plod Past $1.1 Billion
• Table 3-1: U.S. Retail Dollar Sales of Watches, by Price Segment, 1998-2003
• Unit Volume Tops 176 Million
• Table 3-2: U.S. Retail Unit Volume of Watches, by Price Segment, 1998-2003
• Average Retail Price Inches Down
• Table 3-3: U.S. Average Retail Price of Watches, by Price Segment, 1998-2003
• Watch Sales Skew to Southern U.S.
• Table 3-4: Regionality of Watch Sales, by U.S. Census Region, 2003

• Watches Both Timepieces and Fashion Statements
• The Cycle: “I Lost/Broke/Grew Tired of My Watch”
• Vast Assortment Reduces Watches to Commodity
• Teen/Tween Markets Strengthening
• Table 3-5: Projected U.S. Population, by Age Bracket, 2003-2010
• Gadget Vanguard Delivering More Bucks
• Watch Sales’ Relation to the Economy Varies by Price Tier
• European-Based Watch Marketers Hurting
• The Watchmaker Shortage

• Watches Ticking Up to $7.4 Billion by 2008
• Mass Segment to Break $2.7 Billion Mark
• Mid-Priced Segment to Surpass $2.5 Billion
• Upper Middle Segment Will Reach $844 Million
• Luxury Watches, as Always, Sail Above Fray to $1.3 Billion
• Table 3-6: Projected U.S. Retail Dollar Sales of Watches, by Price Segment, 2003-2008
• Figure 3-2: Projected U.S. Overall Retail Dollar Sales of Watches, 2003-2008

• A Maze of Watch Marketers, Licensors, Distributors
• Several Hundred Marketers
• Only 11 U.S. Watchmakers
• Types of Companies Involved
  • Specialists Predominate
  • …And Most Are Private
  • Foreign-Based Companies a Force in U.S. Market
  
  
• Vertical Integration More and More Typical
• Involvement in Premiums Business
• Table of Marketers, Brands, and Price-Segment Involvements
• Table 3-7: Selected Marketers of Watches and Their Brands

• Special Note: It’s Share of Watch Consumers…
• Timex the Watch Brand Leader, by Far
• Fossil, Seiko, Citizen Lead Second Echelon
• Rolex the Luxury Leader
• Table 3-8: Share of U.S. Purchasing Base for Watches, by Brands Studied by Simmons,* 2003

• Big Cases, Big Faces
• An Emphasis on Precious Materials - for Cheap
• Licensing for Luxury Watches
• Fashion-Name Watches
• Tonneaux
• Straps Upon Straps
• Sports and Kids’ Watches
• Table 3-9: Selected Introductions of Watches, 2002-2004

• Watch Advertisers Spent $152 Million on Media in 2002
• The Top 13...
• Rolex Allocates $25 Million
• Movado Budget Nears $17 Million
• Citizen Invests $14.2 Million
• Swatch Spend Brushes $14 Million
• Richemont Budget at $11 Million
• LVMH Spends Luxury $10.5 Million
• Breitling Spend at $6.7 Million
• Loews Buys Total $6.5 Million, and Seiko’s, $6.4 Million
• Seville Spends Over $5 Million
• Nike, Bedat Each Spend $4 Million+
• Market Leader Timex Allocates $3.5 Million
• Other Million-Dollar Spenders
• Beauty Shots: Machines vs. People
• Fashion and Jewelry Names
• A Romantic Gift
• Oops, We Forgot Women…
• Celebrity Endorsements
  • When You’ve Got an Actual Celebrity...
  • …And When You Don’t
  
  
• Sports and/or High-Tech Themes
• The Advertorial Approach for Mail-Order
• Discounts for Buying Watches Online or by Mail
• P.R.: Charitable Tie-Ins and Activism
• Sports Sponsorships
• A Free Year of SkyTel
• A Sweepstakes
• Premiums Cash in on Other Industries’ Promos

• Shows Replace Marketing to Consumers
• BaselWorld Watch & Jewelery Show
• CARAT: International Trade Exhibition and Fair for Jewelry, Gems and Watches
• Hong Kong Jewelry & Watch Fair
• Inhorgenta
• International Jewelry Tokyo
• JA New York
• JCK Show
• MB/Montres et Bijoux

Chapter 4: The Clock Category

• The Products
  • Three Main Clock Types
  • Electric
  • Mechanical
  • Clock Radios and Other Hybrids
  
  
• Other Ways to Class Clocks
• Housings
• “Atomic” Clocks
• Clocks Often Grouped in Other Product Categories

• Clocks Brush $1 Billion Mark
• A Beleaguered Category Forged Ahead
• Table 4-1: U.S. Retail Dollar Sales of Clocks, 1998-2003
• Tendency to Buy Clock Radios Strongest in Midwest and Northeast
• Table 4-2: Regionality of Clock Radio Sales, by U.S. Census Region, 2003
• Clock Radios Account for a Quarter of Clock Dollars

• Alarm Clocks Always Needed
• But Electronic Devices Tell Us the Time
• And Clocks Banned From Places of Business (The Casino Factor)
• Hybrid Products
• Clock Category’s Relationships with Fashion and Housewares
• Households, Home Improvements, Homebuilding
• Table 4-3: U.S. Households, Expenditures for Improvement/Repair, 1970-2020
• Retail Channel-Shifts Increase Novelty Factor
• Clocks for Kids a Growing Segment

• Clocks to Surpass $1.1 by 2008
• Table 4-4: Projected U.S. Retail Dollar Sales of Clocks, 1998-2003

• About 150 U.S. Clock Marketers
• Table 4-5: U.S. Manufacturers of Clocks for the Home, by Number, Value of Shipments, and Clock Type, 1997
• Specialists, Watchmakers, Appliance Makers, Fashion Houses Involved
  • Specialists and Watchmakers
  • Appliance/Electronics Makers
  • Fashion Houses
  • Other
  
  
• Consolidation More of a Refocus
• Table of Clock Marketers and Brands
• Table 4-6: Selected Marketers of Clocks, and Their Brands

• Timex Is Obvious - or Not So Obvious - Leader
• A Diverse Second Echelon

• Tech 134
• Clocks as Decor
• Metal 135
• Kids’ Clocks
• Wild West Themes
• Table 4-7: Selected Introductions of Clocks, 2002-2004

• Clock Marketers Spend Mere $2.7 Million in 2002
• Loews/Bulova, Howard Miller Are Million Dollar Spenders
• Other Spenders...
• Bose Clock Radios the Most Widely Advertised
• A Grandfather Clock for Every Taste
• Online Price Promos
• Bonus Merchandise
• Clocks on the Corvette 50th Anniversary Bandwagon

• All Relevant: Clock/Watch, Housewares, Gift, Furniture, Electronics Shows
  • BaselWorld Watch & Jewelery Show
  • Duty Free Show of the Americas
  • High Point Furniture Market
  • HomeTech
  • Hong Kong Electronics Fair 2003
  • Inhorgenta
  • New York International Gift Fair (NYIGF)
  • New York Spring Tabletop Market
  • Tokyo International Gift Show

Chapter 5: Focus on Sports Watches

• Watches for Specific Sports, or Just for the Athletic
• Water-Resistance Measured by FTC Standard
• Sports Watches Most Often Affectation
• High-Tech Fitness Monitoring

• Sports Watches Push to Almost $1.7 Billion in 2003
• Sports Watches Flexed Their Muscles
• Table 5-1: U.S. Retail Dollar Sales of Sports Watches,* 1998-2003
• Sports Models Yield a Quarter of Watch Dollars

• Health and Fitness Awareness Always on Rise
• Table 5-2: Top 10 U.S. Sports, by Participation, 2003
• Spectator Sports
• Extreme Sports Encourage Youthful Interest
• Perpetual Overlap with High-Tech, Fashion Watches

• A $2 Billion Segment in 2008
• Table 5-3: Projected U.S. Retail Dollar Sales of Sports Watches,* 2003-2008

• Everyone’s a Sports Watch Marketer
• Table of Marketers and Brands
• Table 5-4: Selected Marketers of Sports Watches, and Their Brands

• Athletic Tech
• Sporting Style
• Table 5-5: Selected Introductions of Sports Watches, 2002-2004

• Benefit to Sports Watches Hidden in Broader Support
• Breitling the Leading Sports Watch Advertiser
• Nike Spends $4.4 Million
• A Few Other Sports Watch-Specific Advertisers
• Beauty Shots - Not Action - Dominate Sports Watch Ads
• Technology for Sports
• Radio Shack’s Quality of Life Stance
• Star Athlete Endorsements
• Price Promos
• Sports Sponsorships
• Auto Racing and Automotive Tie-Ins

Chapter 6: Focus on Kids’ Watches

• Tweens’ Watches Look Like Toys; Teens Put Off Childish Things
• Plastic, Plastic, Plastic
• Analog vs. Quartz/Digital
• Product Niches Within the Kids’ Segment
• Lots of Tie-Ins
• Kids’ Watches Mostly Mass-Mart Priced

• Kids’ Watches March Happily to $401 Million in 2003
• Table 6-1: U.S. Retail Dollar Sales of Children's Watches,* 1998-2003

• Kids an Evergreen Audience for Watches
• Table 6-2: Projected U.S. Children’s Population, by Age Bracket, 2003-2010
• Kid Spending Power Is Spectacular
• Marketers Mount Wiser Teen and Tween Strategies
• Licensing Sometimes Blue Chip, Sometimes Risky

• Kids’ Watches to Top $500 Million Mark in 2008
• Table 6-3: Projected U.S. Retail Dollar Sales of Children's Watches,* 2003-2008

• More Activity in Kids’ Watch Segment Than Apparent
• Table of Kids’ Watch Marketers and Brands
• Table 6-4: Selected Marketers of Kids' Watches, and Their Brands

• For Kids’ Watches, It’s Licenses, Licenses, Licenses
• Table 6-5: Selected Introductions of Kids’ Watches, 2002-2004

• Watch Marketers Soft-Position to Kids
• Some Humor for a Change…
• You Are What You Wear - Seriously
• Monogrammed Watches for Girls
• Ad Showcases
• To Stretch Kids’ Dollars, Some Merchandise Promos
• Seventeen’s Holiday Gift Giveaway

Chapter 7: The Competitive Situation

• Watches: Navigating a Commodity Market
• Clocks: Whole Different Markets in Which to Compete
• Players Urged to Be Creative
• Licensing Spreads to More Watch/Clock Segments
• Flood of Fashion Names to Add Frenzy to Fray
• The Strong Foreign Presence

• Four Units Yield Sales of $14.5 Million
• Advance a Shrewd Brand Overseer

• Record Net Sales of $663 Million in 2002
• The Prototypical Fashion-Based Player

• Net Sales of E12.7 Billion in 2002
• LVMH Watch Segment Struggled in 2002-2003
• Updating Ebel
• Other LVMH Brands

• Sales Hover Near $300 Million
• Sticking With a Narrow Stable of Brands
• Movado a Limited Distribution Retailer

• A Powerhouse Keeps a Low Profile
• Old Fashioned Elbow Grease - and Licenses

• Elegance, Understatement - And High Visibility

• Luxury Marketer Has Sales of E3.7 Billion in 2003
• Richemont in Reactive Mode
• Table 7-1: Richemont Group's Sales, by Product Segment, World Region, and Retail vs. Wholesale, 2003 (Euros, in Millions)

• Sales of $895 Million in Fiscal 2003
• Salton’s Acquisition of Westclox and Other Brands
• An Ideal Stance for Selling Clocks

• Sales of $1.9 Billion in Fiscal 2003
• Conservative Marketer, Mostly Conservative Watches
• Seiko Covers Every Price-Tier
• Spoon’s the Hip Style Exception

• Sales of CHF4.1 Billion in 2003
• A Global Giant’s Vulnerabilities
• Swatch’s 18 Watch Brands
  • Six Prestige Brands
  • Two High-Range Brands
  • Seven Middle-Range Brands
  • Two Basic-Range Brands
  • Endura, the Private Label
  
  
• Competitive Profile: Timex Corporation
  • At Least $600 Million in Sales
  • Repositioned From Plain Traditional to Cutting Edge Tech
  • Timex: Fashion Brand Licensee, Clock Brand Licensor
  
  
• Six Marketers to Watch
  • Chiaphua Industries, Ltd./Equity Time USA
  • Infinity Instruments
  • La Crosse Technology, Ltd./Europe Supplies, Ltd.
  • Nixon USA
  • Oregon Scientific/IDT International, Ltd.
  • Fashion Houses, as a Group
  
  ...
• Chapter 8: Distribution and Retail
  
  • The Product Path
  • To Delegate Control of the Path - or Not…
  • Some Marketers Are Retailers, Too
  • Specialty and Department Stores Lead Watch Sales
  • Watch Margins Typically in 25%-55% Range
  • Most Jewelers Sell Watches
  • Mass Merchandisers Control Half of Clock Dollars
  • Whittling Down the Almost Infinite Total Assortment
  • Numbers of Watch Brands Stocked
  • Kids’ Specialty Stores and Clocks
  
  
• Retail Focus: Top Five Jewelry Chains
  • Zale Corp. a $2.2 Billion Operation
  • Sterling Jewelers’ Sales Break $1.7 Billion
  • Friedman’s Turnover at $437 Million
  • Grocer Fred Myer: Jewelry Sales of $400 Million
  • Whitehall Jewelers Reports Sales of $341 Million
  
  
• Retail Focus: Tourneau, Inc.
  • Tourneau Offers Largest Selection
  
  
• Retail Focus: Luxottica Group (Sunglass Hut, Watch Station, Watch World)
  • Luxottica Sales at E3.1 Billion in 2002
  • Small Stores, Huge Network

Chapter 9: The Consumer

• About Simmons Data
• Over 71 Million Adults Bought Watches
• More Women Purchase Watches Than Men
• Three Quarters of Watch Purchasers Buy for Selves
• Table 9-1: Number and Share of U.S. Adult Population Purchasing Watches in Last 12 Months, 2003
• No Surprise: Mass-Priced Watches Have Largest Consumer Base
• But Mid-Market Watches Are Also Very Popular
• Despite Influence, Upper-Mid and Luxury Audiences Are Tiny
• Table 9-2: U.S. Watch Purchasing by Price Segment, 2003
• In Overall Watch Purchase, Middle Agers, Women Stand Out
• Watches for Oneself: Divorced Persons, Blacks Are Key
• Watches as Gifts: Affluence, Families Encourage Purchase
• Table 9-3: Demographic Characteristics Favoring Purchase of Watches, 2003
• Overall Watch Purchase, by Price: Gender, Education, Income Patterns
• Watches for Oneself, by Price: Again, a Reflection of Society...
• Table 9-4: Demographic Characteristics Favoring Purchase of Watches, by Amount Spent, 2003
• Table 9-5: Demographic Characteristics Favoring Purchase of Watches for Oneself, by Amount Spent, 2003
• Watches as Gifts, by Price: Gender, Marital Status Are Key
• Table 9-6: Demographic Characteristics Favoring Purchase of Watches as Gifts, by Amount Spent, 2003
• Timex, Fossil, Seiko Are Most Popular Watch Brands
• Table 9-7: U.S. Purchasing of Watches, by Brand, 2003
• Armitron Watch Audience Skews to Lower Level of Affluence
• Bulova Watch Buying Orients to Males and the Monied
• Casio Watches Highly Preferred by Men and the Less Affluent
• Citizen Watches Appeal to Younger Auds
• Fossil Watch Audience Likewise Youngish
• Gucci Watches: College, Northeastern Residency
• Guess Watch Purchasers Youthful, Affluent
• Lorus Watch Audience Marked by Women, Midwesterners
• Movado Snares Male, Affluent Watch Buyers
• Omega Watch Purchase Favored by Men
• Pulsar Watch Buyers Female, Middle-Agers
• Rolex Watch Purchasers Male, Middle-Aged
• Seiko Watch Audience Male, Mid-Lifers, Homeowners
• Swatchers Notably Female
• TAG Heuer Watches Favored by Men, Full-Timers
• Venerable Timex Skews Feminine and Low-Income
• Table 9-8: Demographic Characteristics Favoring Purchase of Watches, by Brand, 2003
• Everybody’s Got a Clock - Almost
• Clock Purchasers Mirror Population and Household Characteristics
• Clock Radios Owned by 116 Million Adults
• Clock Radios Recently Purchased by 10 Million Adults
• Factors in Clock Radio Ownership Suggest Affluence
• Affluence, Youth Mark Clock Radio Purchase
• Table 9-9: Demographic Characteristics Favoring Ownership/Purchase of Clock Radios, 2003

• Walking, Swimming, Bowling Our Favorite Sports
• Fitness Regimens/Practices
  • Over Half of Us Exercise Regularly
  • Home the Favorite Venue
  • Most Popular Schedule Is 3-4 Times per Week
  
  
• Table 9-10: Fitness Regimens/Practices, 2003
• Consumer Focus: The Kids’ Watch Audience
  • Total Kid Population at 75 Million
  • Table 9-11: Projected U.S. Population, by Age Bracket, 2003-2010
  • Usually Just One or Two Kids per Household
  • Table 9-12: U.S. Households, by Age and Number of Children Present
  • Whites Still Far Most Numerous Teens/Tweens
  • Table 9-13: Projected U.S. Teen and Tween Population (Aged 8-18), by Race and Hispanic Origin, 2003-2010
  • Teen Spending Power
    • Parents Most Popular Source of Cash
    • Own Earnings of $90 Billion
    
    
  • Table 9-14: Teen Earnings, by Individual Average and Annual Aggregate, 2001

Chapter 10: Trends and Opportunities

A Glamorous Market Attracting Two Kinds of Marketers
• Nothing Wrong with Traditional Approach
• But Let’s Think “Hot”:
  • Target Hot Product Segments
  • Target Hot Demographic and Lifestyle Sectors
  
  
• Marketers Should Rise Above Retail

Appendix I: Glossary
Appendix II: Addresses of Selected Marketers