Luxury Watch Companies working to stay popular
Luxury Watch Companies Working to Stay Popular.
With the economy still recovering from the recession, the luxury watch industry is also recovering from a downturn in business. Not only has the economy affected watch sales, but according to Pew research 83% of American adults have cell phones. Since cell phones display the exact time, many people purchase watches for the sake of fashion, rather than function.
Many Swiss watch companies are swimming against the current of the challenging economy by focusing on the fashion elements of the luxury watch market. Companies know that they must do in order to stay relevant and make an impact strong enough to boost their sales. "We decided the best way to get into the U.S. market would be to make a strong statement," said Stephen Urquhart, president of Omegathe world's largest watchmaking company. "To really tap the American market, the only way to do it is to open our own stores." Following their move, both Rolex and Tag Heuer both opened brick and mortar stores, hoping that the increase in visibility will translate to an increase in sales.
Even many of the most affluent and forefront Americans arent dressing in the most expensive luxury watches. For example, President Obama wears a $350 Jorg Gray 6500 Chronometer. Treasury Secretary Timothy F. Geithner often wears a $30 Timex Ironman. Comedian Conan O'Brien was spotted by celebrity watch blog Watch-ID.com sporting a Suunto Core Extreme Edition Red watch, typically less than $500. And Canadian teen heartthrob Justin Bieber wears a Casio G-Shock G-Lide, which sells for less than $100. On the other hand, many are still seen wearing exceedingly expensive luxury watches, so its not an entirely empty market. In Europe particularly, having the latest luxury watch is an important step toward lookingand eventually beingsuccessful.
The economy should improve according to leading experts, and we expect the luxury watch market to improve along with it. Prices are probably lower now than they will be as the economy keeps growing. While many sales have shifted from retail stores to online stores, quality is as important as it always has been, as manufacturers increase quality control in an effort to keep customers happy in these tight times.