Luxury Watch Market

The Luxury Watch Market – Future Trends in 2023 and Beyond

By: Frank DePino | December 1, 2023

The luxury watch market is taking the world by storm. Understanding the luxury watch market will help you increase sales and know your target market and what appeals to them.

Each carefully-designed watch’s style, characteristic, design, and brand defines the luxury watch market. The luxury market size continues to grow with future generations and is defined as showing its style, uniqueness, and top-quality design. If it’s high-quality and has a premium price tag, it falls under the definition of a luxury watch.

In the following, we’ll explore the various components of the luxury watch market, what to expect in upcoming months and years, how Gen Z and future generations respond, and much more. So read on to become an expert on the luxury watch market today!

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Who Is the Target Market for Luxury Watches?

Luxury watch market trends show the most popular trends among men around the globe. As a result, the Swiss watch industry has seen a large resurgence in recent years.

This is due to the influence of Westernization, the increase in brand awareness, and the need for exclusivity. The Swiss watch industry is the global leader in watch production, while Singapore, Asia, and Japan are the key markets.

Some of these luxury watches have features such as smart notifications, Garmin Pay integration, and daily activity tracking. These watches could also have a Pulse Ox2 sensor and a wrist-based heart rate.

Gen Z Are Driving Sales in Luxury Watch Market Value

Gen Z is starting to buy luxury goods, including watches. They’re starting to buy them younger than millennials, at 15. In the past year, Millennials and Generation Z accounted for the luxury market’s growth last year. Luxury goods include watches, apparel, jewelry, beauty, and more.

While interest rates are rising, luxury sales have been immune to this. The U.S. continues to top luxury sales, with China following closely behind.

By 2030, it’s expected that Generations Y, Z, and Alpha will become the largest buyers of luxury watches. These younger generations are expected to represent 80% of global purchases.

Personal luxury goods sales increased by 22% in 2022, 353 billion euros, about $381 billion. This year, they’re expected to grow the luxury watch market size between 3-8% depending on the economies of Europe, the U.S., and China.

A man is wearing a luxury watch after noticing the market trends for 2023.

The Segments of the Global Luxury Watch Market

The luxury market is segmented by distribution and product channels. The market is divided into electronic and mechanical watches.

The mechanical segment has a large market share and will continue to dominate for the foreseeable future. Many business-class people prefer mechanical watches since they’re functional and fashionable.

PVD and titanium ceramic coatings lengthen the lifespan of these watches. As a result, they’re expected to see the highest growth.

Distribution channels include online and offline. Regions include LAMEA, Asia-Pacific, Europe, and North America.

How Large Is the Luxury Watch Market?

From Patek Philippe to the Swiss watch industry, the global market is $24.39 billion but is expected to increase to 3.25% between 2022-2029. It could reach about $31.50 billion of the growing consumer preference.

The luxury watch market includes sole proprietors, partnerships, and organizations. These watches come at a premium price and are classified as luxury watches.

While Western Europe is one of the largest regions for sales of luxury watches, the Asia-Pacific region continues to grow. Moreover, it’s expected to be the fast-growing region soon.

The consumer preference for luxury watches continues to grow. It’s expected to increase the growth of this market over time. To compete, luxury watch companies like Audemars Piguet must have a top digital marketing plan and design to stand out.

This surge in sales is due to increased disposable income, a growing consumer preference for high-end watches, and a desire to wear high-quality and expensive watches. Developing countries want to show this social statement by wearing high-end watches like Rolex SA.

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What Is the Outlook for the Luxury Watch Market?

The global luxury watch market size is expected to reach $53.5 billion by 2028! That’s an increase of 5.3% CAGR in the forecast period.

Celebrities, wealthy individuals, and royalty are increasing the purchase of luxury watches. As a result, consumers see them buying these watches, and it’s one of the driving forces for this increase.

The development of smart features in these luxury watches is also increasing sales. Since many globally want to show high status and wealth, it increases luxury watch purchases. Luxury watches are also increasing in demand for women.

During Covid-19, the want for Citizen Watch and other high-end brands increased. This increase is expected to continue. As a result, prices have risen to keep up with the demand.

1. Distribution Channel Insights

Online channel segments are expected to increase with the fastest CAGR of 5.05%. Online purchases mean safe transactions, easy return options, cash-on-delivery, and centralized and integrated customer services.

Companies including Ralph Lauren, Fossil Group, and Rolex Inc. dominate online purchases. However, they also have a strong offline presence to drive online sales.

Online allows companies to drive sales at a global level. Purchases will continue to grow as consumers prefer high-end products. Also, electronic watches have a share of more than 69.15% of revenue.

 Offline purchases will continue as well. This is due to knowing the weight and size of the product in outlets, supermarkets, convenience stores, and other locations.

Apple Inc sees an increase in sales due to offering customization features. Some of these features include the material, color, and other features. Some top luxury watch companies include The Swatch Group Ltd., Apple Inc., A. Lange & Söhne, and Rolex SA.

A man is photographed wearing a luxury watch bought at the California regional market.

2. Regional Purchases

The purchases are divided into various regions. These regions include the Asia Pacific, North America, Middle East & Africa, Central & South America, and Europe. The Asia Pacific continues to dominate luxury sales. Due to disposable income, Japan, India, and China are some of the most popular locations for luxury watches.

3. 2023 and Beyond for Luxury Watch Sales

In 2023, luxury watches amount to $48.38 billion. It’s expected to grow by 2.49% from 2023-2027. In China, most revenue will be about $10,890 million in 2023.

This number includes smartwatches from luxury brands. Handmade watches are also included, but the Apple Watch is not. This number is based on more than 100 of the largest luxury companies in the world.

The business-class population continues to buy luxury watches since they can be seen as a fashion statement. Mechanical wristwatches can be powered by a rotor or mechanically.

In 2022, Apple launched Apple Watch Ultra. It has a 49mm titanium case, a bright Apple watch display, a flat sapphire front crystal, and other advanced features.

The Apple Watch Series 8 and the Apple Watch SE also target women. They have women’s health wellness, crash detection, stay coupled with family, and more. With many are concerned about their health, the watch also offers healthy life features.

In 2022, Fossil launched the Gen 6 Hybrid Smart Watch. It has features of other smartwatches, including Alexa Support, Spo2 sensor, and a traditional design.

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4. Asia-Pacific Emergence

China is one of the most competitive markets since it allows luxury markets a place to compete and acquire goods. Some of the most popular manufacturers include Channel, Cartier, Patek Philippe, Rolex, Omega, Tissot, Blancpain, Rado, and Piaget.

China continues to increase fashion trends and participate in sports. Both of these drive luxury sales.

QNet now has a new Swiss watch brand called Mugnier. Mugnier is located in India at this time.

These new collections include Mode, Semper, and Invictus. The availability of premium watches online has become more competitive.

Tourists are also more likely to buy these high-end products. Due to this, there’s an increase in watch production in this region.

A luxury watch owner is enthusiastic to have boosted his marketing through a web agency.

How To Stand Out in a Competitive Market

You need to have a high-quality design and marketing plan to stand out. In addition, your copywriting needs to be top-notch as well as a strong social media marketing presence.

With the growth of luxury watches in the Gen Z market, TikTok is becoming a must for many companies. Therefore, hiring the right social media company to represent your luxury brand and speak to that generation is vital.

A high-end website is also vital. A clean design that keeps your audience engaged and is easy to navigate is important. It’s best to hire a designer who understands luxury companies and has the experience to show it.

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Defining and Understanding the Luxury Watch Market

By now, it should be clear how vital the luxury watch market is in the present and future. As a luxury owner, you understand the need for your logo, branding, and entire marketing campaign to match your brand.

Employing a team of experts will help maximize your company’s success in the future. To get started, reach out to the Mediaboom team to take full advantage of our various marketing capabilities for luxury brands!

By: Frank DePino

Frank DePino is Principal and Founder of Mediaboom. Since 2002, Frank has led Mediaboom’s award-winning staff of creative and technical professionals, building the most effective marketing and advertising solutions for its clients.

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