Why is There a Rising Demand for Luxury Watches?
Thursday - 09 March 2023
Just before the Watches & Wonders 2023 event kicks off, we’re looking at why the luxury watch industry is set to grow globally over the next decade and why the current market is doing so well
For many industries, the global pandemic has wreaked havoc on businesses, sending many into an early demise. Companies have been facing higher costs for materials due to an increase in demand and a difficulty in sourcing supplies. This has transferred to the consumer in many sectors of work and business, so naturally, you would think that the same had applied to the luxury watch industry during this time. But… here’s the thing. High-end consumers who weren’t as badly affected by the COVID-19 pandemic and those that didn’t waste their money on summertime vacations last year now have more disposable income and it’s transpiring that they’re fuelling the demand for wristwatches that cost hundreds of thousands of pounds.
Luckily for us here at C W Sellors our loyal customers continue to return to us because they know the service provided by us is one fortified by an enthusiasm for watchmaking and a shared passion for some of the world’s leading watch brands. Whilst statistically the industry suggests that online shopping still remains the preferred point of sale and the most convenient way to acquire a luxury watch, we’ve enjoyed seeing visitors and tourists return to our Derbyshire-based boutiques and our beautiful Whitby stores to enjoy picking up a timepiece and feeling it on the wrist. If that’s not your preferred way, however, we offer a next-day delivery on many of our luxury timepieces, as well as online finance options that suit your budget and lifestyle, and a free luxury gift wrapping service.
On a much larger scale, the global luxury watch industry is expected to continue growing and this is down to emerging markets experiencing rapid economic growth. China is considered the largest market for luxury products, accounting for around 35% of sales, whilst India is a key market for luxury watches in particular, with a growing industry of around 25% annually. Brazil and African countries are also showing a growth in their luxury watch market.
It's also well-documented that luxury watches, particularly those crafted from precious metals are a safe option in times of stock market collapses and global economical turmoil. The luxury watch industry experienced a slowing down (sales decreased to around 9%) during the 2008 and 2009 financial crises. During 2022 they had increased by about 22%, proving that the luxury watch market is pretty stable and not determined by downturns in the economy. If anything it shows a resilience to these otherwise detrimental factors.
At this moment in time, people are looking for a solid and tangible investment. For many, that’s a luxury watch. An heirloom that can be handed down the family line or sold at the right time on the market when it appreciates in value. For some highly sought-after timepieces, buying a preowned watch can be more expensive than buying from new, depending on whether the model is an industry icon or not. But that’s not the only reason why the luxury watch industry is booming. Owning a timepiece from a prestigious brand is a lifestyle choice and an elite circle to join. Wearing a watch as a statement piece not only expresses taste but also status.
The digitalisation of luxury watches also popularises this sector with a more convenient way to purchase and acquire a new timepiece overnight, proving to be incredibly convenient for those with busy lifestyles and a reputation to uphold. It is projected that in the next three years, digital shopping will account for around 20% of luxury watch sales. Add to this, social media platforms delivering the latest press releases in real-time, and the lifestyle simply sells itself. Promoting products in this way enables watch brands to collect statistics and data to see what their audiences want. It’s the reason why we as consumers experience cookie notifications so that it can streamline your online surfing to let you see more of what you want to see.
Lastly, if you’re into watch technology, new and advanced equipment is enabling watch brands to push themselves even further with the advantages of material and developmental research. New materials are emerging onto the watch scene, whilst improved technologies can also accelerate a company in producing better, longer lasting, more resistant and more efficient working movements and features. Just like a new luxury car, watches are always improving, feeding consumer demand and a need to acquire the latest and most modern releases to reach the market.
