Global Luxury Watches Market by Types (Mechanical Watches and Electronic Watches), End-users (Men and Women), Distribution Channels (Online Stores, Single Brand Stores, and Multi Brand Stores), and Regions (Asia Pacific, North America, Europe, Latin America, and Middle East & Africa) Forecasts, 2021-2028

The global luxury watches market is anticipated to expand at a substantial CAGR during the forecast period, between 2021 and 2028.  A watch is a portable and wearable device that is designed to keep a constant movement regardless of the motions caused by the wearer’s activities. The primary aim of a watch is to display the time of day to the user at all times. However, during recent times, various extra features have been added to watches, such as timers, alarms, calculators, GPS, and Bluetooth. Such watches are known as smart watches. Luxury watches are expensive collective watches that are heavily priced owing to expert craftsmanship, trendy design, and visual appeal. Luxury watches are a product manufactured by luxury brands, purchased by people with an extensive disposable income in order to maintain a status symbol.

Market Trends, Drivers, Restraints, and Opportunities

• Growing consumer preference for high quality, premium watches primarily drive the luxury watches market.
• Rise in disposable income of the consumers aided with brand consciousness is expected to fuel the market growth in the coming years.
• Certain characteristics of luxury watches owing to their aesthetic looks, limited availability, social distinction, and exclusivity attract customers toward these watches, thereby positively impact the market growth.
• Growing fraudulent and counterfeit activities toward duplication of luxury watches at a cheap price is hampering the market.
• Rising penetration and influence of social media on the younger generation toward luxury brands is expected to surge the demand for luxury watches in the coming years.
• Technological advancements and the implementation of the Bluetooth technology on smart watches is projected to provide lucrative opportunities for the market.

Scope of the report

Global Luxury Watches Market Segment Insights

Heavy craftsmanship and intricacy of designs drive the mechanical watches segment

Based on types, the luxury watches market can be bifurcated into mechanical watches and electronic watches. The mechanical watches segment held a share of 76% in 2019 and is projected to register a significant CAGR during the forecast period. Mechanical watches use clockwork mechanisms to measure the passage of time. These watches are made with heavy designs with different concepts such as history and heritage. Luxury brands are focused on launching mechanical watches with an aesthetic and grand appeal to attract consumers with a preference for historic, skilled, and classy watches. Mechanical watches have more complications as they are made with all the expertise and knowledge about watchmaking. However, with the developments in the consumer electronics market, various electronic watches are launched by luxury brands that provide more features to the consumer. As opposed to mechanical watches, electronic watches not only show the time but also provide Bluetooth and GPS facility to the user. These are also known as smart watches and are extensively priced owing to the brand value and cost of production.

Rise in the number of working women increases the women segment growth

On the basis of end-users, the market can be classified as men and women. The women segment held a substantial share of the market in 2020 and is estimated to grow at a rapid rate in the coming years. The rise in the number of working women and disposable income primarily influence the growth of this segment. Various designs of luxury watches have been conceptualised adhering to the preferences of the modern women, such as diamond studded watches. Luxury brands have launched various luxury watches for women that are intricate and connected to the culture and heritage of various countries. Surge in the demand for high end, aesthetic, and designer watches by women has propelled the market growth significantly.

Multi brand stores to witness a surge in sales during the forecast period

Based on distribution channels, the market can be segmented into online stores, single brand stores, and multi brand stores. The multi brand stores segment held a maximum share in the market in 2020 and is projected to grow at a robust expansion rate during the forecast period. Multi brand stores offer a variety of brands and watches for prospective consumers. Brand speciality, originality, and excellent customer service has led this segment to grow at a rapid rate. Multi brand stores offer multiple models and exploration for customers and also have different festive discounts and incentives, which further drives the segment growth. The online segment is also projected to grow significantly owing to the rising penetration of the Internet. However, as compared to multi brand stores, the online store segment has not generated enough revenue owing to the threat of counterfeit and deceptive sales of luxury products.

Europe to dominate the global market

In terms of regions, the global luxury watches market can be categorized as North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa. Europe dominates the market due to the presence of a majority of key players in the region. For example, LVMH Moet Henessy Louis Vuitton SE and Rolex are based in Europe. North America also contributes a significant market share due to the rising wealthy population and working women. The market in Asia Pacific is forecasted to expand at a robust growth rate during the forecast period due to the rising disposable income in countries such as China, Japan and India and increase in the standard of living aided with the influence of social media on the youth.

Segments

Segments covered in the report

By Types

• Mechanical Watches
• Electronic Watches

By End-users

• Men
• Women

By Distribution Channels

• Online Store
• Single Brand Store
• Multi Brand Store

By Regions

• North America
• Europe
• Latin America
• Asia Pacific
• Middle East & Africa

Competitive Landscape

Key players in the global luxury watches market include LVMH Moet Hennessy -Louis Vuitton, CASIO Computer Co. Ltd., Fossil Group Inc., Citizen Watch Co. Ltd., Rolex SA, Compagnie Financière Richemont SA, Movado Group Inc., Patek Philippe SA, Seiko Holdings Corp., and the Swatch Group Ltd. These players are widely engaged in various business development strategies including mergers & acquisitions, collaborations, agreements, and partnerships to strengthen their geographical presence and expand their consumer base globally