The high-end segment is driving growth in Europe’s watchmaking sector, according to research firm GfK.
GfK Consumer Choices review of European watch markets in 2012
In the wake of the INHORGENTA international trade show in Munich, market research institute GfK Consumer Choices reports on the watch market in Europe. According to the results of the institute’s retailer panels, Europe is recording encouraging sales growth rates despite the difficult economic context of 2012.
Across the Rhine, purchases rose by almost 7%. The German market even approached the symbolic 10% mark in value growth. In the neighboring countries of Northern and Western Europe, France and the United Kingdom, the trend towards high-end products is continuing. Watches selling for more than 1,000 euros already accounted for over 40% of sales in France in 2011, and this trend will continue to grow in 2012.
Sales resolutely driven by Luxury Goods
In France, while overall market growth slowed at the end of the year, reaching +4% at the end of 2012, models costing over 5,000 euros once again performed well, with the price segment recording the strongest growth (+28% sales growth in this category), accounting for almost a quarter of overall sales in the watchmaking sector.
In the UK and the Netherlands, consumers are buying less, but at a much higher price.
In line with previous years, sales volumes remained on a downward trend in the UK, with 10% fewer watches sold in 2012, while sales in the sector continued to grow (+8% at the end of 2012).
Affordable price segments gain strength
Sales of watches between £500 and £1,500 are down, with customers opting for top-of-the-range or more affordable brands. Observations via GfK retailer panels confirm this trend in Northern Europe.
The year 2012 marked the success of unisex watches in all colors, with rubber or plastic straps. Both established and new brands have entered this niche and are developing ever wider ranges of colored watches, with rather affordable price positioning pushing consumers to impulse buy. In addition, the strong media presence of certain brands has had a positive effect on this market segment, boosting growth in watches between 50 and 150 euros to +6%.
In France, as in Europe, watches are more than ever perceived by the younger generation as an essential fashion accessory.
Cette publication est également disponible en : Français (French)
