The 10th edition of the World Watch Report highlights a 5.7% global growth in luxury watch demand, driven by strong performance in BRIC markets, particularly China, which saw a 59.4% increase. Despite challenges in established markets like the U.S. and Germany, luxury brands like Richemont are experiencing significant growth, especially in online demand and ladies' watches. Key insights include the dominance of mobile searches in the Chinese market and the rising influence of social media, particularly Instagram over Facebook.

1. The Leading Market Research in the Luxury Watchmaking Industry
Since 2004
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2014
MEDIA
PARTNER
CHINA
DATA
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Cover by: Julien Mottaz, Watch designer

2. © Digital Luxury Group, DLG SA, 2014
The Leading Market Research in the Luxury Watchmaking
Industry Since 2004
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§ 10th 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 DemandTracker™
technology
§ Published in partnership with Europa Star and the gracious support of the
Fondation de la Haute Horlogerie
A MARKET STUDY LIKE NO OTHER.
For more information on methodology:
www.worldwatchreport.com

3. © Digital Luxury Group, DLG SA, 2014
The Leading Market Research in the Luxury Watchmaking
Industry Since 2004
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TRACKING 62 OF THE MOST RENOWNED LUXURY WATCH BRANDS.

4. © Digital Luxury Group, DLG SA, 2014
The Leading Market Research in the Luxury Watchmaking
Industry Since 2004
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IN THE TOP 20 MARKETS ACROSS THE GLOBE.

5. © Digital Luxury Group, DLG SA, 2014
The Leading Market Research in the Luxury Watchmaking
Industry Since 2004
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§ Despite a slowdown in sales in Asia, global consumer demand for luxury watches grew by
+5.7%.
§ The Chinese luxury market is not dead: Interest in all luxury watch categories continues to
escalate, led by Omega, Cartier and Rolex.
§ The Brazilian market fails to deliver amid high expectations (-2.9%) ahead of an important
year for luxury watch brands in the market (World Cup and Olympic Games in 2016).
§ Cie. Financière Richemont SA is the fastest growing conglomerate (+13% in online demand).
§ Ladies’ watches rise in popularity (+7.5%) led by China and Swatch Group brands.
§ Mobile Revolution: Instagram is the most engaging social media platform among watch
aficionados with nearly three times Facebook’s average engagement rate, while in China,
searches for Haute Horlogerie brands using mobile phones increased by +120% according to
exclusive data shared by Baidu.
KEY TRENDS 2013.

6. © Digital Luxury Group, DLG SA, 2014
The Leading Market Research in the Luxury Watchmaking
Industry Since 2004
!
United States: 20.69%
! -7.90% (y/y)
Mexico: 1.58%
! -9.32% (y/
y)
Brazil: 2.14%
! -2.91% (y/
y)
Germany: 7.04%
! -9.25% (y/y)
United Kingdom: 10.04%
" +3.12% (y/y)
France: 5.92%
! -3.42% (y/
y)Spain: 1.98%
! -16.24% (y/
y)
Switzerland: 1.82%
! -11.87% (y/y)
Italy: 5.61%
" +8.85% (y/y) Saudi Arabia: 0.54%
! -9.18% (y/y)
India: 3.03%
" +12.05% (y/
y)
Thailand: 2.17%
! -8.60% (y/
y)
Singapore: 1.64%
! -8.45% (y/y)
Hong Kong : 1.20%
! -4.40% (y/y)
Taiwan: 0.76%
" +4.02% (y/y)
China: 23.25%
" +59.43% (y/y)
Japan: 9.01%
! -5.54% (y/y)
Russia: 1.59%
" +20.43% (y/
y)
Qatar: 0.24%
! -17.26% (y/
y)
GLOBAL CONSUMER INTEREST FOR LUXURY WATCHES GREW+5.7%.
- All calculations are based on the 62 brands featured in the report
- Date range for all data is Jan-Dec. 2013 and Jan-Dec. 2012 for Y/Y evolutions

7. © Digital Luxury Group, DLG SA, 2014
The Leading Market Research in the Luxury Watchmaking
Industry Since 2004
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§ Global demand was fueled once again by BRIC markets with the highest
year-to-year increases in: China (+59.4%), Russia (+20.4%) and India
(+12.0%).
§ Historically established and mature markets such as Germany (-9.2%), the
United States (-7.9%), and Japan (-5.5%), experience single digit
demand decline, whilst Italy (+8.8%) and the United Kingdom (+3.1%) see
growth in interest versus 2012.
§ The Brazilian market fails to deliver amid high expectations (-2.9%), ahead
of an important year for luxury watch brands in the market (World Cup and
Olympic Games in 2016). Despite growing international attention and key
events driving important brand related investments, the market predicted
to become the next big thing, fails to deliver on its promises.
GLOBAL CONSUMER INTEREST FOR LUXURY WATCHES GREW BY+5.7%.

8. © Digital Luxury Group, DLG SA, 2014
The Leading Market Research in the Luxury Watchmaking
Industry Since 2004
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§ Prestige category brands lead with 23.25% of global interest and account for a total of 41.5% total
demand in China.
+59%
Top 3 Models
De Ville
Omega
Constellation
Omega
Ballon Bleu
Cartier
CHINA: INTEREST IN ALL LUXURY WATCH CATEGORIES CONTINUES TO ESCALATE.
Market growth Top 3 Brands

9. © Digital Luxury Group, DLG SA, 2014
The Leading Market Research in the Luxury Watchmaking
Industry Since 2004
!
RICHEMONT GROUP IS THE FASTEST GROWING CONGLOMERATE.
§ Richemont’s Maisons’ focus on Haute Horlogerie and Watch and Jewelry brands in its portfolio
benefited the group, thanks to rising interest in the categories globally (+13.2% and +13.0%
respectively) but especially among Asian markets and Chinese luxury travelers.
Evolution of Luxury Conglomerates vs. Independent Brands
Y/Y 2012-2013
- All calculations are based on the 62 brands featured in the report
- Date range for all data is Jan-Dec. 2013 and Jan-Dec. 2012 for Y/Y evolutions
+13.08%
+12.02%
+5.87%
+1.49%
-­‐‑0.97%
-­‐‑4.88%
-­‐‑5.43%
-­‐‑18.71%
Richemont
Rolex
Swatch Group
Private
Kering (ex. PPR)
DKSH
LVMH Watches & Jewelry
Movado

10. © Digital Luxury Group, DLG SA, 2014
The Leading Market Research in the Luxury Watchmaking
Industry Since 2004
!
HAUTE HORLOGERIE & WATCH AND JEWELRY CATEGORIES CONSOLIDATE FASTEST
GROWING POSITION.
Evolution of Category Search Breakdown
Y/Y 2012-2013
.
§ The Haute Horlogerie category grew the fastest (+13.16%) thanks to brands such as Glashütte Original
(#49, +35.27%), Ulysse Nardin (#30, +35.36%) and Vacheron Constantin (#13, +34.59%).
§ The Watch and Jewelry was the second best performing category, growing by +12.95%, thanks to solid
performances from Cartier (#4, +19.00%) and Piaget (#26, +26.46%).
§ Exposure to Asia played a crucial role in fueling categories’ growth with +23.66% and 43.14% of
demand respectively. - All calculations are based on the 62 brands featured in the report
- Date range for all data is Jan-Dec. 2013 and Jan-Dec. 2012 for Y/Y evolutions
+13.16%
+12.95%
+6.17%
+5.72%
-­‐‑1.38%
-­‐‑3.99%
Haute Horlogerie
Watch and Jewelry
Prestige
Global
Couture
High Range

11. © Digital Luxury Group, DLG SA, 2014
The Leading Market Research in the Luxury Watchmaking
Industry Since 2004
!
TOP 15 MOST SEARCHED LUXURY WATCH BRANDS GLOBALLY.
.
20.79%
10.78%
7.42%
6.86%
5.27%
3.95%
3.61%
3.45%
3.12%
3.07%
3.01%
2.55%
1.98%
1.82%
1.71%
20.62%
Jan.2013 – Dec. 2013

12. © Digital Luxury Group, DLG SA, 2014
The Leading Market Research in the Luxury Watchmaking
Industry Since 2004
!
+35.36%
+35.27%
+34.59%
+27.93%
+26.46%
+22.10%
+20.82%
+20.36%
+20.16%
+19.00%
+5.72%
-­‐‑17.79%
-­‐‑18.69%
-­‐‑18.83%
-­‐‑19.06%
-­‐‑19.35%
-­‐‑19.71%
-­‐‑19.89%
-­‐‑23.51%
-­‐‑23.90%
-­‐‑26.40%
Ulysse Nardin
Glashü]e Original
Vacheron Constantin
Tudor
Piaget
Patek Philippe
A. Lange & Söhne
Jaquet Droz
Blancpain
Cartier
Global
Ebel
Sinn
Louis Vui]on
Bovet
Bell & Ross
Montblanc
Concord
Technomarine
Tiffany & Co.
Frédérique Constant
TOP 10 FASTEST & SLOWEST GROWING LUXURY WATCH BRANDS.
2013 vs. 2012
Jan.2012 – Dec. 2013

13. © Digital Luxury Group, DLG SA, 2014
The Leading Market Research in the Luxury Watchmaking
Industry Since 2004
!
INTEREST IN LADIES’ WATCHES RISES.
§ Interests in Ladies’ watches are led by BRIC countries China (+145.50%), India(+27.65%) and Russia
(+11.67%).
§ Haute Horlogerie leads the growth trend (20.88%) thanks to brands such as Vacheron Constantin
(+66.2%). The Prestige brands come in second (15.31%) thanks to the contribution of Omega (+88.3%)
and IWC (+15.97%).
§ Luxury conglomerates generated more attention for ladies’ watches especially for those with large
market shares such as Swatch Group (25.15%, +47.76%), Richemont (19.97%, +13.29%) and Rolex
(26.51%, +7.91%).
Top 3 Ladies’ Watch Brands Top 3 Fastest Growing Ladies’ Watch Brands

14. © Digital Luxury Group, DLG SA, 2014
The Leading Market Research in the Luxury Watchmaking
Industry Since 2004
!
CONSUMER INTEREST IN ICONIC MODELS CONFIRMED.
Haute Horlogerie #1
20th Global
Royal Oak
Audemars Piguet
Watch and Jewelry #1
13th Global
Couture #1
29th Global
J12
Chanel
Prestige #1
1st Global
High Range #1
35th Global
Submariner
Rolex
Jubilé
Rado
Jan.2012 – Dec. 2013
Ballon Bleu
Cartier

15. © Digital Luxury Group, DLG SA, 2014
The Leading Market Research in the Luxury Watchmaking
Industry Since 2004
!
FACEBOOK INCREASINGLY INFLUENTIAL BUT ENGAGEMENT STAGNATES.
§ Brands regrouped nearly 69 million fans on Facebook, growing by +39.27%.
§ Rolex leads watch-only brand ranking with 1.7M+ Fans.
§ Brands stagnate in average interactions as engagement rate stabilizes (0.6%).
Facebook Volume of Fans
Jan.2013 – Dec. 2013
Chart above shows Prestige
category brands
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16. © Digital Luxury Group, DLG SA, 2014
The Leading Market Research in the Luxury Watchmaking
Industry Since 2004
!
!"#$%&'(()%
!"#$#%&%"'()$'%*
Audemars Piguet*
Franck Muller*
Girard-Perregaux*
Jaeger-LeCoultre*Roger Dubuis*
Baume & Mercier*
Carl F. Bucherer*
Frédérique Constant*
Maurice Lacroix*
Raymond Weil*
Hublot*
IWC*
Omega*
Tag Heuer*
Bulgari*
Chopard*
Harry Winston*
Jacob & Co.*
Piaget* Van Cleef & Arpels*
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+",'$#-$&(./01&%(/2(3$",*
INSTAGRAM THOROUGHLY DEFEATS FACEBOOK IN ENGAGEMENT RATE.
§ Brands regrouped nearly 3.4 million fans on Instagram.
§
Audemars Piguet generated the highest engagement with an average of 5.7% whilst Hublot led with
the highest number of fans (117K)
§ Instagram thoroughly defeated Facebook with nearly 3 times the average engagement rate.
Jan.2013 – Dec. 2013
Not taking into account
Couture category brands
and Tiffany & Co.

17. © Digital Luxury Group, DLG SA, 2014
The Leading Market Research in the Luxury Watchmaking
Industry Since 2004
!
Top 3 Brands on Watch Forums
WATCH FORUMS MOST ENGAGING PLATFORMS AMONG COLLECTORS & AFICIONADOS.
§ Among top 3 analyzed watch forums, Chinese platform iWatch365 captures the lion share with 58% of the
106 million total forum post views, followed by pioneer TimeZone (37%) and PuristSPro (5%).
§ All 3 forums considered, Rolex, Omega and Patek Philippe are the most popular brands.
Share of Posts Views by Forums
2013

18. © Digital Luxury Group, DLG SA, 2014
The Leading Market Research in the Luxury Watchmaking
Industry Since 2004
!
Big Data Big Insight
EXCLUSIVE INSIGHTS ON THE CHINESE MARKET FROM BAIDU BIG DATA.
The #1 Chinese search engine

19. © Digital Luxury Group, DLG SA, 2014
The Leading Market Research in the Luxury Watchmaking
Industry Since 2004
!
CHINA YEARLY TABLE OF CONTENTS.
• Current state of the Haute Horlogerie watch industry in China
‐ Mobile market growth
‐ Mobile ranking & growth vs. previous year
‐ Brand competition
‐ Demand volume by province
‐ Demand density by province
• Chinese consumer search journey
‐ Consumer search journey – Intention comparison
‐ Consumer search journey – Triggers
‐ Consumer search journey – Ends
‐ Consumer search journey – Intentions before clicking E-commerce

20. © Digital Luxury Group, DLG SA, 2014
The Leading Market Research in the Luxury Watchmaking
Industry Since 2004
!
18 HAUTE HORLOGERIE WATCH BRANDS ANALYZED.
A. Lange & Söhne Franck Muller Parmigiani
Audemars Piguet Girard-Perregaux Patek Philippe
Blancpain Glashütte Original Richard Mille
Bovet Greubel Forsey Roger Dubuis
Breguet Jaeger-LeCoultre Ulysse Nardin
De Bethune Jaquet Droz Vacheron Constantin

21. © Digital Luxury Group, DLG SA, 2014
The Leading Market Research in the Luxury Watchmaking
Industry Since 2004
!
Current State of the Haute Horlogerie
Watch Industry in China

22. © Digital Luxury Group, DLG SA, 2014
The Leading Market Research in the Luxury Watchmaking
Industry Since 2004
!
THE MARKET IS GROWING RAPIDLY.
• Compared to 2012, we observe a market with +120% mobile growth in China in 2013
• Mobile searches account for 39.1% of total searches in 2013
Year-to-year Mobile Growth of Searches for Haute Horlogerie Watches in China
(2012 & 2013)
- All calculations are based on the 18 brands featured in the report
- Date range for all data is Jan-Dec. 2013 and Jan-Dec. 2012 for Y/Y evolutions

23. © Digital Luxury Group, DLG SA, 2014
The Leading Market Research in the Luxury Watchmaking
Industry Since 2004
!
HAUTE HORLOGERIE MOBILE RANKING & GROWTH VS. PREVIOUS YEAR (2013 vs. 2012).
Brand
Most Searched Brands
on Mobile 2013
Patek Philippe 1
Vacheron Constantin 2
Jaeger-LeCoultre 3
Audemars Piguet 4
Breguet 5
Franck Muller 6
Blancpain 7
A. Lange & Söhne 8
Glashütte Original 9
Girard-Perregaux 10
Ulysse Nardin 11
Richard Mille 12
Jaquet Droz 13
Roger Dubuis 14
Parmigiani 15
Bovet 16
Greubel Forsey 17
De Bethune 18
Brand
Fastest Growing Brands
on Mobile 2013
Richard Mille 1
Ulysse Nardin 2
Girard-Perregaux 3
Franck Muller 4
Audemars Piguet 5
Jaeger-LeCoultre 6
Roger Dubuis 7
Jaquet Droz 8
Glashütte Original 9
De Bethune 10
Patek Philippe 11
Vacheron Constantin 12
Breguet 13
A. Lange & Söhne 14
Blancpain 15
Greubel Forsey 16
Parmigiani 17
Bovet 18

24. © Digital Luxury Group, DLG SA, 2014
The Leading Market Research in the Luxury Watchmaking
Industry Since 2004
!
Multidimensional Scaling
BRAND COMPETITION.
• In consumer searches, Patek Philippe and Vacheron Constantin are more correlated
than any other brand
• German brands A. Lange & Söhne and Glashütte Original are comparatively more
correlated
S-Stress value=0.031 shows the mapping is reliable
Multidimensional Scaling (MDS) is a means of visualizing the level of similarity of individual brands based on co-
mentioned searches
German brands

25. © Digital Luxury Group, DLG SA, 2014
The Leading Market Research in the Luxury Watchmaking
Industry Since 2004
!
DEMAND VOLUME RANKING BY PROVINCE.
Share of Searches by Province
(2013)
Share of Searches
0% 1% 2% 3% 4% 5% 6% 7% 8%
Top 5
Provinces
Share of Searches
2013
Guangdong 11.9%
Jiangsu 8.4%
Zhejiang 8.0%
Beijing 7.6%
Shanghai 7.4%
- All calculations are based on the 18 brands featured in the report

26. © Digital Luxury Group, DLG SA, 2014
The Leading Market Research in the Luxury Watchmaking
Industry Since 2004
!
DEMAND DENSITY BY PROVINCE.
• 7 provinces out of 31 outpaced the market average density
TGI
Density of Searches by Province
(2013)
Target Group Index （TGI）is used to measure density of searches which refers to the degree of search intensity
comparing with netizen’s average search intensity
- All calculations are based on the 18 brands featured in the report- Mainland China Only

27. © Digital Luxury Group, DLG SA, 2014
The Leading Market Research in the Luxury Watchmaking
Industry Since 2004
!
Chinese Consumer Search Journey

28. © Digital Luxury Group, DLG SA, 2014
The Leading Market Research in the Luxury Watchmaking
Industry Since 2004
!
CONSUMER SEARCH JOURNEY – INTENTION COMPARISON (2013).
Share of Search Intentions
- All calculations are based on the 18 brands featured in the report

29. © Digital Luxury Group, DLG SA, 2014
The Leading Market Research in the Luxury Watchmaking
Industry Since 2004
!
CONSUMER SEARCH JOURNEY – TRIGGERS.
• As for previous searches, Brand and E-Commerce related keywords account for most
search volume respectively
Share of Searches – Previous Searches
- All calculations are based on the 18 brands featured in the report

30. © Digital Luxury Group, DLG SA, 2014
The Leading Market Research in the Luxury Watchmaking
Industry Since 2004
!
CONSUMER SEARCH JOURNEY – ENDS.
• After searching with keywords related to any of the 18 brands, 45.5% of Chinese consumers’
last clicks are on Baidu, especially Baidu Knowledge. A considerable number of Chinese
consumers is satisfied by the information received after clicking on advertisements.
• E-commerce ranks the second with 20.7% clicks, therefore, is crucial as well
Baidu Knowledge
19.8%
E-commerce
20.7%
Baidu Paid Search
12.4%
Brand Official Websites
18.6%
Baidu Others
13.3%
Vertical Websites
12.4%
Others
2.8%
Share of Last Clicks
- All calculations are based on the 18 brands featured in the report
Baidu
45.5%
Non-
Baidu
54.5%

31. © Digital Luxury Group, DLG SA, 2014
The Leading Market Research in the Luxury Watchmaking
Industry Since 2004
!
CONSUMER SEARCH JOURNEY – INTENTIONS BEFORE CLICKING E-COMMERCE.
• Percentage of price intention is comparatively higher in previous searches before
clicking E-commerce
Share of Intention Searches before Clicking E-commerce
- All calculations are based on the 18 brands featured in the report

32. © Digital Luxury Group, DLG SA, 2014
The Leading Market Research in the Luxury Watchmaking
Industry Since 2004
!
ABOUT BAIDU INC.
§ Baidu is a world-leading search engine and the #1 search
engine in China.
§ 80% of its market share is on PC and 70% is on mobile.
§ Baidu’s mission is to provide the most user-friendly and
most balanced way for people to find what they are
searching for online.
§ Baidu’s corporate values are “Innovation, Technical Prowess
and Nobility of Mission.” Its culture is simple and reliable.
§ Baidu’s 10-year objective is to become more accessible to
anyone, any time, anywhere.

33. © Digital Luxury Group, DLG SA, 2014
The Leading Market Research in the Luxury Watchmaking
Industry Since 2004
!
About Digital Luxury Group
Digital Luxury Group (DLG) is the digital partner of forward-thinking luxury brands. With offices in Geneva, New York
and Shanghai, DLG combines leading brand intelligence with bespoke digital marketing services. From creation to
implementation, we empower brand strategies with our proprietary data and research. For more information:
www.digital-luxury.com. 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:
Laetitia HIRSCHY
Intl' Intelligence and Communications Manager
lhirschy@digital-luxury.com
Digital Luxury Group, DLG SA
7 Avenue Krieg
CH-1208 Geneva
Switzerland
WHO ARE WE?
Visit our website to get detailed information:
www.worldwatchreport.com or www.digital-luxury.com
Cover design by:
Julien Mottaz, Watch Designer
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