NEW YORK, NY / ACCESSWIRE / June 19, 2019 / Modern luxury watch brands compete for market share with an increasingly technology driven timepiece market. Global smartwatch sales are expected to reach 71 million in 2018, three times the volume of shipments from traditional Swiss watchmakers. In response, non-digital brands are adapting to the desires of millennials, who look for more than status and opulence when buying luxury goods, says Erik Boneta.
Watch companies recognize that millennial consumers' purchasing power will continue to grow as they reach their prime earning years. To establish brand recognition early, these companies are launching cheaper versions of their high end product lines. Many watchmakers have created timepieces that sell for less than half the price of their flagship products in an effort to reach the coveted young professional demographic. Changing raw material inputs, like switching precious metals for stainless steel, allow companies to reduce sale prices while retaining many quality design features, according to CNN. The value for the owner is a timepiece that looks much more expensive than it actually is.
Globally, there are signals that traditional wristwatches still have staying power despite the rise of digital timepieces. Deloitte reports that Swiss watch exports showed signs of recovery in 2017, rising to CHF 5 billion after eight consecutive quarters of falling growth. According to Deloitte's Global Power of Luxury Goods Report, millennials and Generation Z will comprise 40% of the $356 billion luxury goods market by 2025. Furthermore, young consumers appear to prefer mechanical watches to digital ones within the high end watch market. Such trends create opportunities for companies that can adopt effective marketing strategies targeted at the millennial demographic. Social media campaigns which rely on influencers or brand ambassadors have proven to be an effective tactic to raise sales. A recent survey of market managers indicated that influencer marketing was responsible for 28% of online customer acquisitions. Newer luxury designers focus their branding efforts almost exclusively on a digital audience. The British brand Farer, founded in 2016, relies on its social media platforms to grow and level the playing field with more established competitors.
Luxury watch makers are also responding to millennial preferences by linking consumption with social responsibility. Young buyers are demanding the reassurance from brands that their purchases do not support products that harm the environment or exploit vulnerable populations, according to Erik Boneta. Moreover, they are willing to pay a premium for watches created by good corporate citizens that have a positive impact on society. Companies have responded by increasing transparency and partnering with like-minded organizations. Baume & Mercier, based in Switzerland, plans to manufacture its time pieces regionally in the future to reduce the carbon emissions from its supply chain. Blancpain, a diving watch maker, launched its Ocean Commitment initiative to build public awareness of maritime conservation.
Based in New York City, Erik Boneta has over 15 years experience in the luxury watch industry. His company Boneta Inc. specializes in the retail of high end timepieces. Boneta holds a Bachelor's degree in Finance from St. John's University.
Erik Boneta - Founder of Boneta Inc. in New York City: http://erikbonetanews.com/
Erik Boneta of Boneta Inc. on the Enduring Popularity of Swiss Timepieces among Vintage Watch Buyers: https://finance.yahoo.com/news/erik-boneta-boneta-inc-enduring-213000723.html
Erik Boneta of Boneta Inc. Explores Factors Supporting the Growth of the Fine Timepieces Market: https://www.bloomberg.com/press-releases/2019-06-04/erik-boneta-of-boneta-inc-explores-factors-supporting-the-growth-of-the-fine-timepieces-market
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SOURCE: Boneta Inc.
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