Table of Contents
Introduction and Abbreviations
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- Definition
- Consumer research
- ACORN
- Advertising data
- Abbreviations
Premier Insight
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- Addressing the consumer dissonance
- ‘The flair ain’t there’
- Trading up online
- Converging with other technologies
Executive Summary
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- Changing consumer attitudes providing a fertile backdrop
- Stylish innovation driving growth
- Women’s segment growing fastest
- New technologies
- Disparate supply structure
- Advertising and promotion strongly weighted in fourth quarter
- Upmarket retailers growing
- Price less of a consumer issue
- Continuing market growth
Market Drivers
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- Needs versus desires
- Changing attitudes towards fashion, style and dress
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- Figure 1: Agreement with selected lifestyle statements, 2001-05
- Men more likely to wear a valuable watch as a status symbol
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- Figure 2: Agreement with statement ‘I often wear a valuable watch’, by gender, by age and socio-economic group, 2005
- Differences by age
- ABC1s can afford a valuable watch
- Younger male consumers look for the brand
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- Figure 3: Agreement with statement ‘A designer label improves a person’s image’, by gender, by age and socio-economic group, 2005
- The gifting occasion is key
- Developing the gifting occasion
- UK gentrification
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- Figure 4: UK population, by socio-economic group, 2000 and 2005
- Consumer expenditure drives non-essential purchases
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- Figure 5: PDI and consumer expenditure, 2000-05
- Changing distribution map
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- Figure 6: UK population, by age, 2000 and 2005
Market Size and Trends
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- Value continuing to outstrip volume
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- Figure 7: UK retail sales of watches, 2000-05
- Style and distinctiveness
- Vigour and competition
- Growing competition
- £50-150 the most competitive price band
- Product portfolios
- Watches and cars
- Gift purchase
- Watch ownership and expenditure
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- Figure 8: Ownership and purchase of watches, 2004 and 2005
- Older consumer are key owners
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- Figure 9: Ownership of watches, by age, 2005
- Consumers are more likely to purchase for themselves
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- Figure 10: Bought for self or for someone else, 2004 and 2005
- Younger consumers are key purchasers
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- Figure 11: Purchase of watches in the last 12 months, by age, 2005
- Changing brands and fashions
- An emotional treasure
- Expenditure
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- Figure 12: Expenditure on watches bought new in the last 12 months, 2003-05
Market Segmentation
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- Mainstream sector dominates in volume…
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- Figure 13: UK retail sales of mainstream and luxury watches, by sector, by volume and value, 2000-05
- …but the luxury sector dominates in value
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- Figure 14: Mainstream watch sales as proportion of total watch sales in UK, by volume and value, 2000-05
- The value split
- Quality and rarity
- Mainstream watches market
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- Figure 15: UK retail sales of mainstream watches, by volume and value, 2000-05
- Strong real growth
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- Figure 16: UK retail sales of all watches, by movement/display, by volume and value, 2001-05
- Quartz versus mechanical
- The return of the digital?
- Changing styles
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- Figure 17: UK retail sales of all watches, by sector, by volume and value, 2001-05
- The women’s sector
- Children growing older younger
New Product Developments
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- Spring Drive movement
- Seiko 2
- Convergence with other technologies
- Multi-functionality
- Materials
- Technology and the future
- Technology as protection?
The Supply Structure
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- Foreign trade
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- Figure 18: UK foreign trade in watches, 2000-04
- Swiss exports to the UK
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- Figure 19: Swiss watch exports, by leading countries of destination, 2000-04
- The UK as an importer
- Companies and brands
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- Figure 20: Brand shares of new sales in the UK watch market, by volume, 2001-05
- Accurist Watches Ltd
- Casio
- Citizen Watch UK Ltd
- Fossil
- The Inter-City Watch Company
- Rotary Watches Ltd
- Seiko UK Ltd
- The Swatch Group
- Time Products UK
- UK Time Ltd
- Zeon
- Other companies
Advertising and Promotion
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- Figure 21: Main monitored media advertising expenditure on watches, 2000-05
- Ad budgets rise through the market
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- Figure 22: Main monitored media advertising expenditure on watches, by media and quarter, 2004
- Print is king
- Seasonal spend
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- Figure 23: Main monitored media advertising expenditure on watches, by leading advertisers, 2003 and 2004
- Luxury brands dominate
- Seiko the most important player in the mainstream market
- Recent campaigns
- Other methods
- Retailer initiatives
- Reaching the trade
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Distribution
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- Static distribution map
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- Figure 24: UK retail sales of watches, by outlet type and volume, 2001-05
- Retail change
- Mixed news for the multiples
- The Signet Group
- The Goldsmiths Group
- The MW Group
- Other multiples
- Even more mixed for the independents
- Argos
- Fashion outlets
- Department stores
- Gift shops and sports outlets
- Online selling
- The luxury sector online
- The future for online
- TV shopping
The Consumer – Product Attributes Sought
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- Figure 25: Product attributes sought, 2001-05
- Subtle shifts
- Brand and function
- Men like added-value attributes
- Older consumers prefer traditional 12-hour watches…
- …but younger consumers look for the brand
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- Figure 26: Purchasing attributes sought, by age, July 2005
- Consumer behaviour
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- Figure 27: Purchasing motivations, July 2005
- Discretionary purchase
- Gifting occasions
- Younger consumer purchase on impulse
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- Figure 28: Agreement with the purchasing motivation ‘Something caught my eye in the shop’, by age, July 2005
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Detailed Demographics
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- Ownership and purchase
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- Figure 29: Ownership and purchase of watches, by gender, age, socio-economic group, presence of children, marital status, working status, household size, region, lifestage and Mintel’s Special Groups, 2004 and 2005
- Product attributes sought
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- Figure 30: Product attributes sought, by gender, age and socio-economic group, July 2005
- Figure 31: Product attributes sought, by presence of children, lifestage and Mintel’s Special Groups, July 2005
- Figure 32: Product attributes sought, by marital status, working status and household size, July 2005
- Figure 33: Product attributes sought, by region and ACORN category, July 2005
- Figure 34: Product attributes sought, by media usage, commercial TV viewing and supermarket used, July 2005
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- Figure 35: Product attributes sought, by gender, age and socio-economic group, July 2005
- Figure 36: Product attributes sought, by presence of children, lifestage and Mintel’s Special Groups, July 2005
- Figure 37: Product attributes sought, by marital status, working status and household size, July 2005
- Figure 38: Product attributes sought, by region and ACORN category, July 2005
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- Figure 39: Product attributes sought, by media usage, commercial TV viewing and supermarket used, July 2005
- Detailed Demographics – purchase triggers
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- Figure 40: Purchasing motivations, by gender, age and socio-economic group, July 2005
- Figure 41: Purchasing motivations, by presence of children, lifestage and Mintel’s Special Groups, July 2005
- Figure 42: Purchasing motivations, by marital status, working status and household size, July 2005
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- Figure 43: Purchasing motivations, by region and ACORN category, July 2005
- Figure 44: Purchasing motivations, by media usage, commercial TV viewing, and supermarket used, July 2005
The Consumer – Attitudes and Behaviours
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- Figure 45: Attitudes towards watches, July 2005
- The duality of watches
- Who is who
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- Figure 46: Agreement with ‘I have more than one wristwatch to wear for different occasions’, by Mintel’s Special Groups and household size, July 2005
- Disposable income
- Break down the obstacles to purchase
- Developing the finer points
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Detailed Demographics – Consumer Attitudes
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- Figure 47: Attitudes towards watches, by gender, age and socio-economic group, July 2005
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- Figure 48: Attitudes towards watches, by presence of children, lifestage and Mintel’s Special Groups, July 2005
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- Figure 49: Attitudes towards watches, by marital status, working status and household size, July 2005
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- Figure 50: Attitudes towards watches, by region and ACORN category, July 2005
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- Figure 51: Attitudes towards watches, by media usage, commercial TV viewing and supermarket used, July 2005
- Assessing key target markets – consumer typologies
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- Figure 52: The consumer typologies, July 2005
- Cluster 1 – Replacers (29% of sample)
- Cluster 2 – Upgraders (17% of sample)
- Cluster 3 – Gift Givers (16% of sample)
- Cluster 4 – Impulse Shoppers (10% of sample)
- Cluster 5 – Non Clock-Watchers (28% of sample)
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- Figure 53: The consumer typologies, by gender, age and socio-economic group, July 2005
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- Figure 54: The consumer typologies, by region, marital status and working status, July 2005
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- Figure 55: The consumer typologies, by presence of children, Mintel’s Special Groups and lifestage, July 2005
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- Figure 56: The consumer typologies, by media usage, supermarket used and commercial TV viewing, July 2005
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- Figure 57: The consumer typologies, by household size and ACORN category, July 2005
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- Figure 58: The consumer typologies, by purchasing features sought, July 2005
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- Figure 59: The consumer typologies, by purchasing motivations, July 2005
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- Figure 60: The consumer typologies, by consumer attitudes, July 2005
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The Future
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- Previous growth forecast set to continue
- Faster growth in volume than value
- Will functionality become redundant?
- Innovation-led growth
- The evolving distribution map
Forecast
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- Market growth set to continue
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- Figure 61: Forecast of the market for watches, at current and constant prices, 2005-10
- Luxury watches forging overall value growth…
- …but mainstream watches will remain critical to volume sales
- Multiple watch ownership will drive sales
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- Figure 62: Forecast of the market for watches, by volume, 2005-10
- Factors incorporated in the forecast
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