WorldWatchReport™ 2013 Key Findings

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Every year at the occasion of BaselWorld, Digital Luxury Group unveils the results of the WorldWatchReport™, the leading market research in the luxury watch industry published in partnership with …

Every year at the occasion of BaselWorld, Digital Luxury Group unveils the results of the WorldWatchReport™, the leading market research in the luxury watch industry published in partnership with Europa Star, and the gracious support of the Fondation de la Haute Horlogerie.

The full edition of the report, which this year will cover 60+ brands in 20 markets worldwide, will be available in April 2013 at the time of Baselworld.

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  • 1. The Leading Market Research in the Luxury Watch Industry. Since 2004The Leading Market Research in the Luxury Watch Industry! Since 2004! ! 2013! BASELWORLD KEY FINDINGS APRIL 2013
  • 2. The Leading Market Research in the Luxury Watch Industry. Since 2004 A MARKET STUDY LIKE NO OTHER . §  9th Edition §  62 Luxury Watch Brands §  20 Markets, including BRIC §  1’500 Models and Collections §  250 Brand Ambassadors §  Based on DLG’s proprietary consumer interest tracking technology DemandTracker™ §  Published in partnership with Europa Star and the gracious support of the Fondation de la For more information on Haute Horlogerie methodology: www.worldwatchreport.com  ©  Digital  Luxury  Group,  DLG  SA,  2013 2
  • 3. The Leading Market Research in the Luxury Watch Industry. Since 2004 TRACKING 62 OF THE MOST RENOWNED LUXURY WATCH BRANDS .©  Digital  Luxury  Group,  DLG  SA,  2013 3
  • 4. The Leading Market Research in the Luxury Watch Industry. Since 2004 IN THE TOP 20 MARKETS ACROSS THE GLOBE .©  Digital  Luxury  Group,  DLG  SA,  2013 4
  • 5. The Leading Market Research in the Luxury Watch Industry. Since 2004 KEY TRENDS 2013 (1/1) . §  Global consumer interest for luxury watches grew +3.3% §  China consolidates its leadership position with 1/4 of all global searches, growing by +36.0% §  BRIC markets show greatest year-to-year evolution (+33.0%) §  Swatch Group (+9.8%) overperforms luxury conglomerates §  “Haute Horlogerie” (+10.1%) and “Watch and Jewelry” (+7.7%) categories growing the fastest §  Gap between industry leaders Rolex and Omega narrows further©  Digital  Luxury  Group,  DLG  SA,  2013 5
  • 6. The Leading Market Research in the Luxury Watch Industry. Since 2004 KEY TRENDS 2013 (1/2) . §  Chronographs and Tourbillons are the two most popular product segments §  Iconic collections from Audemars Piguet, Cartier, Chanel, Omega and Rado shine in models ranking §  Sportsmen make the biggest gains in the 2012 watch brand ambassador rankings §  Facebook increasingly influential but engagement stagnates §  Watch forums most engaging platform among collectors and aficionados   - All calculations are based on the 62 brands featured in the report - Date range for all data is Jan-Dec. 2012 and Jan-Dec. 2011 for Y/Y evolutions©  Digital  Luxury  Group,  DLG  SA,  2013   6
  • 7. The Leading Market Research in the Luxury Watch Industry. Since 2004 GLOBAL CONSUMER INTEREST FOR LUXURY WATCHES GREW+3.3% .©  Digital  Luxury  Group,  DLG  SA,  2013
  • 8. The Leading Market Research in the Luxury Watch Industry. Since 2004 GLOBAL CONSUMER INTEREST FOR LUXURY WATCHES GREW+3.3% . §  China consolidates its leadership position with 1/4 of All Global Searches For the second year in a row, China consolidates its leadership position ahead of the USA. One out of four luxury watch searches originates from China. §  BRIC Markets Show Greatest Year to Year Evolution +33.0% Global demand growth was fueled by BRIC Markets with the highest year-to-year increases in China (+36%), Brazil (+29.4%), Russia (+28.5%) and India (+19.7%). §  Early Signs of Demand Decline in Historical Mature Markets Early signs of demand decline were recorded mostly in historically established and mature markets: the United States (-11.6%), Europe (-8.3%) and Japan (-13.6%).©  Digital  Luxury  Group,  DLG  SA,  2013 8
  • 9. The Leading Market Research in the Luxury Watch Industry. Since 2004 GLOBAL CONSUMER INTEREST FOR LUXURY WATCHES GREW+3.3% . “The numbers confirm a shift in demand growth drivers which started several years ago and which shapes the whole industry further towards localization. From product design, brand positioning to in-store service, luxury watch brands need to quickly adapt to client preferences from emerging markets to grow further” - Florent Bondoux, Head of Strategy & Intelligence, Digital Luxury Group  ©  Digital  Luxury  Group,  DLG  SA,  2013 9
  • 10. The Leading Market Research in the Luxury Watch Industry. Since 2004 CHINA CONSOLIDATES ITS LEADERSHIP POSITION WITH ¼ OF GLOBAL DEMAND . Market growth Top 3 Brands Top 3 Models+36% De Ville Constellation Ballon Bleu Omega Omega Cartier §  +36.0% growth led by Prestige category brands (+63%). §  Rolex (#2, +97.8%), Cartier (#4, +71.6%) and Omega (#1, +70.4%) grew the fastest notably due to higher exposure from inner-China regions where the fastest growth rates were observed. §  Rolex overtakes Longines, landing in 2nd place. §  Western provinces showed the fastest growth rate in searches for luxury watches with +8.4%.©  Digital  Luxury  Group,  DLG  SA,  2013 10
  • 11. The Leading Market Research in the Luxury Watch Industry. Since 2004 CHINA CONSOLIDATES ITS LEADERSHIP POSITION WITH ¼ OF GLOBAL DEMAND . “Despite a reported slowdown in the region often attributed to the reluctance towards government gifting, we can’t realistically forecast a significant market decrease in the mid-term as the fast growing middle-class, quick wealth creation from tier 2 and 3 cities as well as increasingly important travel spending are strong drivers that are here to stay.” - Pablo Mauron, General Manager, China, Digital Luxury Group  ©  Digital  Luxury  Group,  DLG  SA,  2013 11
  • 12. The Leading Market Research in the Luxury Watch Industry. Since 2004 SWATCH GROUP OVERPERFORMS LUXURY CONGLOMERATES . Evolution of Luxury Conglomerates vs. Independent Brands Y/Y 2011-2012 §  Strong performances from Omega, Longines and Rado in rapidly growing BRIC markets substantially contributed to Swatch Group performance figures. §  LVMH and PPR watch brands analyzed in the report posted average declines of -4.4% and -10.6% respectively. §  Richemont Group remains close to the global positive trend (+2.1%).  ©  Digital  Luxury  Group,  DLG  SA,  2013 12
  • 13. The Leading Market Research in the Luxury Watch Industry. Since 2004 HAUTE HORLOGERIE & WATCH AND JEWELRY CATEGORIES ARE GROWING THE FASTEST . Evolution of Category Search Breakdown Y/Y 2011-2012 .   §  The Haute Horlogerie category grew the fastest (+10.1%) thanks to brands such as Patek Philippe (#10, +16.7%), Vacheron Constantin (#19, +31.5%) and Breguet (#24, +8.6%) – The Watch and Jewelry was the second best performing category, growing by +7.7%, thanks to solid performances from Cartier (#3, +11.6%) and Piaget (#18, +12.94%). §  Exposure to Asia played a crucial role in fueling categories’ growth with 44% and 46% of demand respectively.    ©  Digital  Luxury  Group,  DLG  SA,  2013 13
  • 14. The Leading Market Research in the Luxury Watch Industry. Since 2004 TOP 15 MOST SEARCHED LUXURY WATCH BRANDS GLOBALLY . .  ©  Digital  Luxury  Group,  DLG  SA,  2013 14
  • 15. The Leading Market Research in the Luxury Watch Industry. Since 2004 TOP 10 FASTEST & SLOWEST GROWING LUXURY WATCH BRANDS . 2012 vs. 2011 Richard Mille 60.98% Vacheron Constantin 31.58% A. Lange & Söhne 21.48% Omega 18.76% Patek Philippe 16.71% Blancpain .   14.37% Piaget 12.94% Cartier 11.61% Hublot 11.03% Breguet 8.63% Global 3.27% -10.63% Girard-Perregaux -11.07% Maurice Lacroix -11.22% Bulgari -12.02% Breitling -15.29% Zenith -15.49% Panerai -16.96% Tudor -18.26% Ebel -20.56% Louis Vuitton -28.42% Baume & Mercier©  Digital  Luxury  Group,  DLG  SA,  2013 15
  • 16. The Leading Market Research in the Luxury Watch Industry. Since 2004 GAP BETWEEN OMEGA AND ROLEX NARROWS FURTHER . §  Rolex continues to lead the Global ranking thanks to its domination in mature markets such as the US and Europe as well as the Middle East and India. §  Omega’s continuing leadership in large, fast developing markets such as China, Russia, and Latin America has helped it gain ground on industry leader Rolex. Historical search market share evolution at constant perimeter (25 brands, 10 markets)©  Digital  Luxury  Group,  DLG  SA,  2013 16
  • 17. The Leading Market Research in the Luxury Watch Industry. Since 2004 GAP BETWEEN ROLEX & OMEGA NARROWS FURTHER . “Omega is on its way to create a shadow over Rolex in the long run. Major sport event sponsorships, ubiquitous celebrity endorsements and a competitive product offering are some of the key ingredients for the Swatch Group brand to grow further. This could ultimately end up in reaching Rolex’s unmatched popularity 3 to 5 years from now.” - David Sadigh, Founder & CEO, Digital Luxury Group  ©  Digital  Luxury  Group,  DLG  SA,  2013 17
  • 18. The Leading Market Research in the Luxury Watch Industry. Since 2004 CHRONOGRAPHS AND TOURBILLONS ARE MOST SOUGHT-OUT PRODUCT SEGMENTS . Top 2 Chronograph Brands Top 2 Tourbillons Brands §  Brands shine in different product segments and geographical zones. §  TAG Heuer is most sought-after for chronographs followed by IWC, remarkably rising two spots in 2nd place, ahead of Omega. §  Patek Philippe remains unrivalled for Tourbillons -related searches but was approached by Hublot (#2; up 3 spots) and rising star Richard Mille (#3, up 13 spots), which saw the strongest increase in brand interest in 2012.  ©  Digital  Luxury  Group,  DLG  SA,  2013 18
  • 19. The Leading Market Research in the Luxury Watch Industry. Since 2004 CONSUMER INTEREST IN ICONIC MODELS CONFIRMED . Haute Horlogerie #1 Watch and Jewelry #1 Couture #1 22nd Global 8th Global 13th Global Prestige #1 High Range #1 1st Global 25th Global Royal Oak Tank J12 Audemars Piguet Cartier Chanel Seamaster Jubilé Omega Rado©  Digital  Luxury  Group,  DLG  SA,  2013 19
  • 20. The Leading Market Research in the Luxury Watch Industry. Since 2004 CINEMA/TV & SPORTS LEAD AMBASSADORS’ RANKINGS . §  Sportsmen make the biggest gains in ambassador rankings Credit: Michael Sohn REUTERS/Stefano Rellandini As a result of the “Olympic Games” effect, sportsmen Michael Phelps (#5 with Omega, up 31 spots), Usain Bolt (#6 with Hublot, up 25 spots) and LeBron James (26th for Audemars Piguet, up 32 spots) are among the highest gains.   §  Cinema/TV remains ambassadors’ most important category Cinema/TV remains the most popular activity as world famous Aishwarya Rai (#2 with Longines, up 3 spots), John Travolta (8th with Breitling, up 7 spots) or Jet Li (9th with Hublot, up 4 spots) continue generating higher consumer interest with 54.8% of total brand ambassador searches.  ©  Digital  Luxury  Group,  DLG  SA,  2013 20
  • 21. The Leading Market Research in the Luxury Watch Industry. Since 2004 FACEBOOK INCREASINGLY INFLUENTIAL BUT ENGAGEMENT STAGNATES . §  Brands regrouped nearly 50 million fans on Facebook, growing by +135%. §  TAG Heuer leads watch-only brand ranking with 1M+ Fans. §  Brands stagnate in average interactions as engagement rate stabilizes (0.78% to 0.82%).©  Digital  Luxury  Group,  DLG  SA,  2013 21
  • 22. The Leading Market Research in the Luxury Watch Industry. Since 2004 WATCH FORUMS MOST ENGAGING PLATFORM AMONG COLLECTORS & AFICIONADOS . Share of Posts Views by Forums Top 3 Brands on Watch Forums 2012 § Among top 3 analyzed watch forums, Chinese platform iWatch365 captures the lion with 49% of the 95 million total forum posts views, closely followed by pioneer TimeZone (45%) and PuristSPro (6%). § All 3 forums considered, Patek Philippe, Jaeger-LeCoultre and Zenith are the most popular.©  Digital  Luxury  Group,  DLG  SA,  2013 22
  • 23. The Leading Market Research in the Luxury Watch Industry. Since 2004 WHO ARE WE ? About Digital Luxury Group Digital Luxury Group (DLG) is the first international company to provide luxury industry market intelligence and use this strategic viewpoint to create and implement digital marketing and communication strategies for luxury brands. With headquarters in Geneva, the company has offices in New York and Shanghai. Since 2004, DLG has been publishing the WorldWatchReport™ a baseline market study for the watchmaking industry in partnership with Europa Star and with the precious support of the Fondation de la Haute Horlogerie. Contact: Florent BONDOUX Head of Strategy & Intelligence fbondoux@digital-luxury.com Laetitia HIRSCHY WorldWatchReport™ Project Manager lhirschy@digital-luxury.com Digital Luxury Group, DLG SA 7 Avenue Krieg CH-1208 Geneva Switzerland Visit our website to get detailed information: www.worldwatchreport.com or www.digital-luxury.com©  Digital  Luxury  Group,  DLG  SA,  2013 23