Here's an interesting article from Deloitte on the watch industry
The Deloitte Swiss Watch Industry Study | Luxury goods
The key findings are:
- Despite slower export growth, demand from emerging markets and N America is expected to grow.
- High end watches (>CHF$5k) will be the fastest growth segment
- Vertical integration will continue in manufacturing (due to Swatch actions on ETA) and distribution (mono brand shops like Tourbillon)
- Alternatives to ETA will be difficult to source resulting in small brands in the low to mid price range to disappear
- Smart watch unlikely to be a threat
Assuming that the findings are correct, the impact for consumers are (i) watch price will continue to increase due to increased demand but maybe not at a pace as before, (ii) shift to mono brand or flagship stores will reduce discounts to consumers as these stores seldom discount (more pricing power to watch manufacturers), and (iii) fewer independent brands in the $1k to $5k price range (Anonimo, Ball, Bell & Ross, Fortis, Oris, Glycine, UTS, Sinn, Muhle are at risk).
Your thoughts or other implications for consumers?