Global Market Structure of Luxury Watches
Economics Project by YSR Raghav(14070)
History and Evolution of Time Keeping Machines
Watch is a small time keeping machine, historically worn on the wrist or attached on a chain carried in the pocket or around the neck for convenience. Timekeeping has a history dating back to ancient times. The first watch in the 15th century made was spring powered and was strictly mechanical, but with the technological advances this mechanism was replaced by quartz vibrations or electromagnetic pulses. Figure 1 shows the evolutionary era of the various time keeping machines/watches since 1300 BC from the sundial, water clock, to the mechanical ...view middle of the document...
People buy this high end luxury watch for exceptional characteristics like, beauty, jewelry value, precious metal, perfection, punctuality, exclusiveness, mechanics, mobility and timelessness.
In recent years, ‘smart watches’ have been released in the market by the technological companies like Samsung, Apple and Google with an aim to conquer the wrist watch industry market.
A smart watch is a computing device which utilizes wearable technology worn on a user's wrist that offers functionality and capabilities similar to those of a smartphone. Smartwatches are designed to, either on their own or when paired with a smartphone, providing features like connecting to the internet, running mobile apps, making calls, messaging via text or video, checking caller IDs, accessing stock and weather updates, providing fitness monitoring capabilities, offering GPS coordinates and location directions, and more.
A number of companies either currently have smart watches on the market or are rumored to be developing smartwatches, including Google, Samsung, Apple (the "iWatch"), LG, Sony, Pebble and various others.
Wearable technology: Many technical companies discovered that human beings are an inviting market of mobile computing and communications platform, and their picked up the ‘smart watch’ which is simple combination of smart phone + bluetooth.
Objective of the study
The main aim of this project is to assess the impact of ‘new emerging smart watches’ over the ‘well established watches’ in general and luxury watches in particular.
The research strategy used in the present work was mostly based from the available web resources and published magazines. Information was collected using any terms like luxury watches, smart watches, wearable technology, global watch scenario and the following:
i) Trends in smart watches versus luxury watches
ii) Impact of smart watch industry over luxury watch industry
iii) Smart watch threats over luxury watch
iv) Do smart watches conquer the wrist watches?
v) Global watch industry scenario (sales and projected growth)
vi) Pros and cons of smart watches and luxury watches
vii) Prospects and challenges faced by luxury watch industry
viii) Counterfeiting of watch technology
ix) Past and present future markets of luxury watches
x) Present and future market trends of smart watches.
Results of Watch Industry
Global watch scenario of luxury watch industry
Most of the important players in the global watch industry are Switzerland, Japan, Hong Kong, and Mainland China. Switzerland produces mid-range to high-end watches, and therefore has a smaller volume than China, Hong Kong, and Japan. But it has the highest value produced as seen in Figure 2.
The Swiss watch making industry is unique in the world. Unsurprising as it may seem, this is an undeniable fact, particularly if we consider the latest figures. Despite an unpredictable global...