In 2022 & 2023, market players expected to sail in rough waters; might incur losses due to huge gap in currency translation followed by contracting revenues, shrinking profit margins & cost pressure on logistics and supply chain. Further, U.S. economy is expected to grow merely by 3% in 2022. Purchasing power in the country is expected to fell nearly by 2.5%.
On the other hand, European countries to see the worst coming in the form of energy crisis especially in upcoming winters!! Right after COVID-19, inflation has started gripping the economies across the globe. Higher than anticipated inflation, especially in western world had raised concerns for national banks and financial institutions to control the economic loss and safeguard the interest of the businesses. Increased interest rates, strong USD inflated oil prices, looming prices for gas and energy resources due to Ukraine-Russia conflict, China economic slowdown (~4% in 2022) disrupting the production and global supply chain and other factors would impact each industry negatively.
The global luxury watch market is estimated to garner modest CAGR over the forecast period, i.e., 2021 – 2029. The growth of the market can be attributed to the increasing spending capacity of consumers backed by rising disposable income of high class and upper-middle class individuals, who are the target consumers for this market. Moreover, escalating shift towards following trends and adoption of high-end brands is estimated to boost the market growth. The market is concentrated in highly developed nations, where consumers can afford expensive products for their brand value.
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The market is segmented by distribution channel into online retail, departmental stores, and exclusive showrooms, out of which, the exclusive showrooms segment is anticipated to hold the largest share in the market during the forecast period as exclusive showrooms provide a satisfactory shopping experience to the consumers in the form of trials, personal assistance and overall sensory experience. Additionally, there are no shipping charges or any additional fee, which attracts the shoppers to opt exclusive showrooms over other channels, which is expected to boost the growth of the segment. On the basis of design, the market is segmented into male, female, and unisex watches, out of which, the unisex segment is anticipated to hold a major share in the market over the forecast period owing to its larger scope of application.
Regionally, the global luxury watch market is segmented into five major regions including North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa region. The market in the North America region is estimated to hold the largest share over the forecast period owing to the presence of major market players in the region, coupled with high per capita income and expanding status of upper middle class. Luxury watches stand as a status symbol among the young generation, in the region, which is estimated to boost the market growth. The market in Europe is anticipated to closely follow the market in North America and hold a major market share owing to the high disposable income of the consumers in the region. Countries, such as, Switzerland, and U.K. are estimated to witness maximum growth owing to the stable economy, and high spending potential of the consumers.
The global luxury watch market is further classified on the basis of region as follows:
Our in-depth analysis of the global luxury watch market includes the following segments:
Ans: High brand value of luxury watches, along with the increasing per-capita income in developed economies is estimated to boost the market growth.
Ans: The market is anticipated to attain a modest CAGR over the forecast period, i.e., 2021-2029.
Ans: High price of luxury watches, along with increasing circulation of cheap replicas in the market are estimated to hamper the market growth.
Ans: The North America region is estimated to provide most growth opportunities over the forecast period on the back of high disposable income of the consumers.
Ans: The major players in the market are Burberry Group plc, CASIO COMPUTER CO., LTD., CHANEL, Dolce&Gabbana S.r.l., Seiko Watch Corporation, Giorgio Armani S.p.A., PATEK PHILIPPE SA GENEVE, and Titan Company Limited.
Ans: The company profiles are selected based on the revenues generated from the product segment, geographical presence of the company which determine the revenue generating capacity as well as the new products being launched into the market by the company.
Ans: The market is segmented by type, distribution channel, design, and by region.
Ans: The exclusive showroom segment is anticipated to hold largest market size over the forecast period owing to sensory shopping experience provided by such showrooms.