The U.S. Watch Market

Published: October 1, 2001 - 200 Pages

Table of Contents

  • 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 U.S. Retail Dollar Sales Of Watches, 1996-2006
      • 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 U.S. Retail Dollar Sales Of Watches, By Price Category, 1996-2001
      • 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
      • More Americans Buy Watches For Self Than For Others
      • Mass-Market Watches Have Biggest Audience
      • Middle Age, Family Households Figure In Overall Watch Purchase
  • The Products
    • Introduction
      • Market Definition
      • A Brief Glossary
    • 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
      • 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)
  • 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 U.S. Retail Dollar Sales Of Watches, By Price Category, 1996-2001 (Dollars, Percent): Mass, Middle, Upper Middle, Luxury (In Millions)
      • Overall Units Reach 169 Million Mark
      • 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 U.S. Retail Unit Volume Of Watches, By Price Category, 1996-2001 (Units, Percent): Mass, Middle, Upper Middle, Luxury (In Millions)
      • Overall Average Price Hovers Near $38
        • Table U.S. Average Retail Prices Of Watches, By Category, 1996-2001 (Average Price, Percent): Mass, Middle, Upper Middle, Luxury (In Millions)
    • Imports And Exports
      • Methodology
      • Wild Fluctuations Not Unusual
      • Watch Imports Valued At $2.4 Billion In 2001
        • Table U.S. Imports Of Watches, By Value, 1997-2001 (Dollars, Percent) (In Millions)
      • Watch Export Values Fall To $88.0 Million
        • Table U.S. Exports Of Watches, By Value And Units, 1997-2001 (Dollars, Percent) (In Millions)
    • 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 Projection Of U.S. Population By Age, 2001-2010 (Number; Percent): 6 Age Brackets (In Thousands)
      • 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 Projected U.S. Retail Dollar Sales Of Watches, By Price Category, 2001-2006 (Dollars, Percent): Mass, Middle, Upper Middle, Luxury (In Millions)
    • Market Composition: By Product
      • Mid-Priced Watches Lead The Market
        • Table U.S. Retail Dollar Sales Of Watches, By Price Category, 1997-2001 (Percent): Mass, Middle, Upper Middle, Luxury (In Millions)
      • Imports Still Account For Over a Third Of Retail Dollars
    • Market Composition: By Outlet
      • Specialty And Department Stores Dominate Watch Sales
        • Table Share Of U.S. Retail Dollar Sales Of Watches And Jewelry, By Retail Channel, 1999
    • 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 Watch Purchasers, By Region, 2000 (Number; Percent) Population, Purchasers, Index (In Thousands)
  • 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 Selected U.S. Marketers Of Watches And Their Brands: Part A
        • Table Selected U.S. Marketers Of Watches And Their Brands: Part B
        • Table Selected U.S. Marketers Of Watches And Their Brands: Part C
    • 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 . . .
      • 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 Selected New Watch Introductions, 1999-2001: Part A
        • Table Selected New Watch Introductions, 1999-2001: Part B
    • Consumer Advertising Expenditures
      • 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
  • 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 Profiles Of Department Store And Mass Retail Watch/Jewelry Operations, 1999* (In Millions)
      • Number Of Brands Carried
      • Update: The Watchmaker Shortage
      • In-Store Watch Shows Can Be Lucrative
    • 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
  • The Consumer
    • Special Note On Simmons Market Research Bureau Data
      • Female Watch Purchasers Outnumber Male
      • More Americans Buy Watches For Self Than For Others
        • Table Number And Share Of U.S. Adult Population Purchasing Watches In Last 12 Months, 2000
      • Mass-Market Watches Have Biggest Audience
      • Middle Market Audience Not Far Behind
      • Upper-Middle And Luxe Audiences Account For Small Shares
        • Table U.S. Watch Purchasing By Price Category, 2000
      • Middle Age, Family Households Figure In Overall Watch Purchase
      • Youth Favors Watch-Buying For Oneself
        • Table Demographic Characteristics Favoring Purchase Of Watches, 2000
      • Watch Purchase For Oneself, By Price: Gender, Income, Race Are Key
        • Table Demographic Characteristics Favoring Purchase Of Watches For Oneself, By Amount Spent, 2000 (Adults; For Recent 12-Month Period)
      • Watch Buys For Someone Else, By Price: Gender, Income, Race Again Key
        • Table Demographic Characteristics Favoring Purchase Of Watches For Someone Else, By Amount Spent, 2000
    • The Consumer: Purchasing By Brand
      • Timex, Seiko, Casio, Citizen Are Most Purchased
        • Table U.S. Purchasing Of Watches, By Brand, 2000
      • 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 Demographic Characteristics Favoring Purchase Of Armitron, Bulova, And Casio Watch Brands, 2000
      • Citizen Appeals To Singles
      • Fossil Purchase Features Youth, Women, Singles
      • Gitano Purchase Marked By Women, Middle Age
        • Table Demographic Characteristics Favoring Purchase Of Citizen, Fossil, And Gitano Watch Brands, 2000
      • Gucci Data Present a Less Coherent Profile
      • Guess? Data Feature Women, Youth, Affluence
      • Lorus Purchase: Women Featured
        • Table Demographic Characteristics Favoring Purchase Of Gucci, Guess?, And Lorus Watch Brands, 2000
      • Movado Purchase Favored By Men, Singles, Affluence
      • Pulsar Purchasers Skew Older, White-Collar
        • Table Demographic Characteristics Favoring Purchase Of Movado, Pulsar, And Rolex Watch Brands, 2000
      • Timex Brand Most Preferred By Women, Homemakers, Middle-Agers
        • Table Demographic Characteristics Favoring Purchase Of The Timex Watch Brand, 2000
  • Appendix I: Addresses Of Selected Marketers

Abstract

Consumers' heightened fashion sense, together with a globally more hectic pace of life, have increased demand for the faithful wristwatch. Valued at $6 billion+ in 2001, the U.S. watch market provides lots of opportunities for shrewd players. Yet this intensely retail-driven scene is complicated by a maze of outlet types (including the Internet), licensing arrangements, and what seems like a million brands. Thus executives will find the latest edition of Packaged Facts' popular guide, The U.S. Watch Market, more valuable than ever: Featured are the usual in-depth analyses of marketplace and product trends; as well as the battle strategies of Timex, Seiko, Citizen, Fossil, Swatch, and others. Special attention is also given to the luxury market. The watch consumer is profiled, using extensive Simmons demographic data.

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