WorldWatchReport™ 2015

The Leading Market Research in the Luxury Watchmaking Industry

Since 2004

• 2015 •

I N PA R T N E R S H I P W I T H

• FULL YEAR 2014 DATA•

On the occasion of Baselworld, Digital Luxury Group releases the WorldWatchReport™ 2015 Edition.

This report is an Excerpt. To get the complete information, purchase your copy of the WorldWatchReport™ 2015 Edition.

PURCHASE FULL EDITION

http://www.worldwatchreport.com/2015-edition/

How to use this report ……………………………………………………………………….. 5

Key trends 2014 ………………………………………………………………………………..9

The global luxury watch market ……………………………………………………………. 13

Market focus – United States ………………………………………………………………... 49

Market focus – China ………………………………………………………………………… 58

Market focus – France ………………………………………………………………………... 69

Social media ……………………………………………………………………………………78

Appendix – global top 50 ranking …………………………………………………………...89

Methodology ………………………………………………………………………………..… 92

Brand ambassadors ………………………………………………………………………..…. 27

Models pricing ………………………………………………………………………..………. 35

© Digital Luxury Group 4

Insights on the Apple Watch ………………………………………………………………… 31

TABLE OF CONTENTWorldWatchReport™ Full Year 2014 Edition

HOW TO USE THIS REPORTto your advantage

• Benchmark your brand’s performance vs its competitors in key markets, as highlighted in your quarterly brand intelligence dashboard.

• Measure the impact of strategic marketing campaigns in terms of natural consumer interest and optimize your media budget allocation.

• Identify new opportunities : find untapped growth potential where demand for your category is bigger than for your brand.

• Early warning about threats or trends building up.


A MARKET STUDY LIKE NO OTHERTracking natural pre-spend consumer behavior online

• 11th Edition

• 600,000 Relevant Online Searches Analyzed Daily

• 62 Luxury Watch Brands

• 20 Markets

• 11,000 Models and Collections

• Based on DemandTracker™, DLG’s proprietary technology that tracks consumer interest.

• Published in partnership with Europa Star and the gracious support of the Fondation de la Haute Horlogerie



62 OF THE MOST RENOWNED LUXURY WATCH BRANDTracked by the WorldWatchReport™.

COUTUREWATCH & JEWELRY PRESTIGEHAUTE HORLOGERIE HIGH RANGE


United StatesMexicoBrazil

United KingdomGermany

FranceSwitzerland

SpainItaly

RussiaUnited Arab EmiratesSaudi ArabiaQatarIndia

ChinaHong-KongJapanTaiwanThailandSingapore

20 OF THE MOST IMPORTANT MARKETS WORLDWIDETracked by the WorldWatchReport™.

KEY TRENDS 2015

KEY TRENDS 2015Market highlights


KEY TRENDS 2015Brand highlights


KEY TRENDS 2015Social media focus


THE GLOBAL LUXURYWATCH MARKET

GLOBAL CONSUMER INTEREST EVOLUTIONOnline interest for luxury watch brands, worldwide

50%

70%

90%

110%

130%

150%

170%


+10% GROWTH2014 VS 2013

Origin of interest

GLOBAL CONSUMER INTEREST GREW BY +10%


Origin of Interest 2014[Evolution of interest 2014 Y/Y vs. 2013]

GROWTH RATE BY REGIONBreakdown by region, worldwide


Evolution of interest 2014 Y/Y vs. 2013

GROWTH RATE BY CATEGORYBreakdown by category, worldwide



MARKET EXPOSURE BY CATEGORYMarket exposure by category, worldwide


Origin of Interest 2014

GROWTH RATE BY CONGLOMERATEConglomerates vs. Independent, Worldwide



TOP 15 MOST SEARCHED LUXURY WATCH BRANDSWorldwide


Share of Interest 2014 and evolution of interest 2014 Y/Y vs. 2013

FASTEST MOVING LUXURY WATCH BRANDSGrowth rate, worldwide



FASTEST MOVING LUXURY WATCH BRANDSEvolution of share of interest, worldwide


Evolution of share of interest 2014 Y/Y vs. 2013



X-Axis & Bubble size: Share of interest 2014Y-axis: Evolution of interest 2014 Y/Y vs. 2013


TOP 10 MODELS AND COLLECTIONSWorldwide

Share of interest 2014

LUXURY WATCH CLIENT BEHAVIORBreakdown of search intentions, worldwide


• Searches for specific watch models and collections (explicitly typed in by the consumer) accounted for 21% of global searches.

• 10% of queries search for the price of luxury watches.

Share of Interest 2014

TOP 7 LUXURY WATCH BRANDS WITH HIGHEST REPAIR RATENormalized gross repair rate, worldwide


BRAND AMBASSADORS


TOP 10 MOST SOUGHT-AFTER AMBASSADORSWorldwide


TOP 50 MOST POPULAR BRAND AMBASSADORSWorldwide


Share of interest 2014 and rank evolution vs. 2013

BRAND AMBASSADOR ACTIVITIESAmbassador Activity Breakdown



INSIGHT ON THE APPLE WATCH

GLOBAL INTEREST FOR THE APPLE WATCH IS RISINGWorldwide


Normalized volume of search 2014

AVAILABLE IN THE 2015 EDITION

Digital Luxury Group Intelligenceintroduces a full analysis on the AppleWatch and the smartwatch market.

Included:

1. Full year global interest for the AppleWatch evolution

2. Competition benchmark

3. Breakdown by intention & country0

50

100

150

200

250

MOST SOUGHT-AFTER BRANDS FOR SMARTWATCHESWorldwide


• Out of the 62 brands of the WorldWatchReport™, TAG Heuer is the brand that gets the most searches related to the keyword “smartwatch”.

• Rolex is second even though the brand has not made any official announcement to date about the potential launch of a smartwatch. Nor has Omega.


DLG does not expect the gold version of the Apple Watch to directly threaten the Swiss luxury watch industry. While being similarly priced, it

addresses consumers who are willing to spend money on a watch that will become outdated within 2 years, whereas Swiss luxury watches are designed

to last over time.

The Apple Watch generates a lot of buzz but does not meet the values and requirements of the Swiss luxury watch buyers: it is perishable, it is not

certified and it does not act as a standalone device.

DIGITAL LUXURY GROUP INTELLIGENCE OPINIONApple Watch Edition

MODEL PRICING

INTEREST FOR MODELS BY PRICE RANGEInterest for models, worldwide

• Most of the interest (21%) for specific models is for models between $4,000 and $6,000.

• 4% of the interest for specific models is for models over $100,000.

• Models under $6,000 accumulate 50% of the interest for specific models.


$1000-$3000

$3000-$4000

$4000-$6000

$6000-$8000

$8000-$11000

$11000-$16000

$16000-$24000

$24000-$37000$37000-$100000

$100000+0

11%

0

18%

0

21%

0

16%

0

8%

0

9%

0

5%

0

4%

0

4%4%

Share of interest Feb. 2014 – Jan. 2015

INNOVATION INDEX BY PRICE RANGEInnovation index, worldwide


Innovation Index Feb. 2014 – Jan. 2015

EVOLUTION OF INTEREST FOR MODELS BY PRICE RANGEEvolution of interest for models, worldwide


Evolution of interest Aug. 2014 – Jan. 2015 vs. Feb. 2014 – Jul. 2015

• The interest for models priced between $6,000 and $8,000 is growing faster (+20%) than the interest for all the price ranges together (+17%).


EVOLUTION OF INTEREST FOR MODELS BY PRICE RANGEEvolution of share of interest for models, worldwide

Evolution of share of interest Aug. 2014 – Jan. 2015 vs. Feb. 2014 – Jul. 2015

“Brands should prepare for increase consumer attention by once again offering solid value propositions and product

choices under $5,000. If they do they will be able to benefit from a return of consumer attention. If not they risk totally

alienating consumers who see their products are wholly over-priced and without a lot of long-term value.”


- Ariel AdamsFounder & Editor In Chief

aBlogtoWatch, USA

CONTRIBUTOR INSIGHTGlobal pricing

CASE MATERIAL INTERESTInterest for models, worldwide

65% Steel

11% Rose gold

5% Platinum

4% Yellow gold

3% White gold

12% Others


• Models in steel are the most sought-after with 65% share of interest while all gold models combine 18%.65%

11%

5%

4%

3%

12%


CASE MATERIAL PRICES


Interest for models, worldwide

X-Axis & bubble size: Share of interest Feb. 2014 – Jan. 2015Y-axis: Catalogue/Search median price [USD]

CASE MATERIAL PRICESInterest for models, worldwide


MOVEMENT INTERESTInterest for models, worldwide

76% Automatic

13% Quartz

11% Manual


• Most of the interest for models over $1,000 is for automatic watches.

• Automatic watches account for 69% of the models over $1,000.

76%

13%

11%


CASE MATERIAL PRICES


Interest for models, worldwide

X-Axis & bubble size: Share of interest Feb. 2014 – Jan. 2015Y-axis: Catalogue/Search median price [USD]

CASE MATERIAL PRICESInterest for models, worldwide


COMPLICATIONS PRICE & INTERESTInterest vs offering for models, worldwide


X-Axis & bubble size: Share of interest Feb. 2014 – Jan. 2015, base-100: chronographY-axis: Catalogue median price

Discover the new pricing indicators developed by Digital Luxury Group Intelligence with breakdowns and rankings

by brands, collections and models for your selection of competitors.

Contact us for more informationa

[email protected]


MODELS PRICING – FULL EDITION

FULL BREAKDOWN AVAILABLE UPON REQUEST

mailto:[email protected]?subject=WorldWatchReport - Models pricing information

MARKET FOCUS

THE UNITED STATES

CONSUMER INTEREST EVOLUTIONOnline interest for luxury watch brands, USA

50%

60%

70%

80%

90%

100%

110%

120%

130%

Global

United States


2014 data availablein the full edition

GROWTH RATE BY CATEGORYBreakdown by category, USA



GROWTH RATE BY CONGLOMERATEConglomerates vs. Independent, USA



“Couture watches suffered over the last year from low or weak product releases as well as what felt like a decrease in overall marketing efforts for their watches even if the

marketing efforts for their larger brands remained strong.”


- Ariel AdamsFounder & Editor In Chief

aBlogtoWatch, USA

CONTRIBUTOR INSIGHTUSA

TOP 15 MOST SEARCHED LUXURY WATCH BRANDSUSA


TOP 20 FASTEST MOVING LUXURY WATCH BRANDSGrowth rate, USA



TOP 10 INTEREST-DRIVING CITIESUSA


Origin of interest 2014 and evolution of interest Y/Y vs. 2013


TOP 10 MODELS AND COLLECTIONSUSA


MARKET FOCUS

CHINA

CONSUMER INTEREST EVOLUTIONOnline interest for luxury watch brands, China

50%

100%

150%

200%

250%

300%

Global

China



GROWTH RATE BY CATEGORYBreakdown by category, China



“In 2015, classic elegant (dress watches) will be well-promoted by the powerful brands. Watches for women do

better than previous years and online retailers improve their service. Low to middle price ranges will find a smart way to fit into the market by introducing new or recovered

collections.”


- Henri LiuEditor In Chief

Wbiao.com.cn, China

CONTRIBUTOR INSIGHTChina

GROWTH RATE BY CONGLOMERATEConglomerates vs. Independent, China



TOP 15 MOST SEARCHED LUXURY WATCH BRANDSChina


Share of interest and evolution of interest Y/Y 2014 vs. 2013

TOP 20 FASTEST MOVING LUXURY WATCH BRANDSGrowth rate, China



CONVERTING THE CHINESE INTEREST INTO SALESTop-15 luxury destinations, Chinese travelers


EXHIBITING YOUR WATCH IN LUXURY HOTELSTop-15 hotels, Chinese travelers


“The most surprising news in 2014 is that Chinese travelers still buy strongly in overseas outlets. This will affect the

global marketing strategy of luxury brands, to expect more impact on marketing in China as well as Chinese favorite

destinations in terms of luxury consumption. And to expect less local retail. The proportion of watches sold to

Chinese at overseas outlet will keep growing.”


- Henri LiuEditor In Chief

Wbiao.com.cn, China

CONTRIBUTOR INSIGHTChina


TOP 10 MODELS AND COLLECTIONSChina

MARKET FOCUS

FRANCE

CONSUMER INTEREST EVOLUTIONOnline interest for luxury watch brands, France

50%

60%

70%

80%

90%

100%

110%

120%

130%

Global

France



“The year 2014 has been a strange one in terms of pace. The French market had a difficult start to the year in terms

of traffic from January to May this was a long tunnel,and then consumption picked up again in December

ultimately yielding positive results.”


- Laurent PicciottoFounder and Managing Director

Chronopassion, France

CONTRIBUTOR INSIGHTFrance

GROWTH RATE BY CATEGORYBreakdown by category, France



GROWTH RATE BY CONGLOMERATEConglomerates vs. Independent, France



TOP 15 MOST SEARCHED LUXURY WATCH BRANDSFrance


TOP 20 FASTEST MOVING LUXURY WATCH BRANDSGrowth rate, France


TOP 10 INTEREST-DRIVING CITIESFrance



TOP 10 MODELS AND COLLECTIONSFrance


SOCIAL MEDIA

FACEBOOKMost engaging posts by category


INSTAGRAMMost engaging posts by category


Facebook number of new fans

2nd 3rd1st

+ 1'049'397

+ 814'392

+ 569'601

+ 524'735

+ 452'946

+ 242'506

+ 229'172

+ 195'987

+ 193'907

+ 171'745

+ 150'047

+ 134'721

+ 97'907

+ 87'831

+ 85'563

Chanel

Rolex

Louis Vuitton

Tiffany & Co.

Dior

Cartier

Bulgari

Ralph Lauren

Longines

Panerai

Hermès

Hublot

Audemars Piguet

IWC

Tag Heuer

FASTEST GROWING COMMUNITIES ON FACEBOOKFacebook, Worldwide


Number of new fans Q4 2014 Q/Q vs. Q3

Instagram number of

new followers

2nd 3rd1st

FASTEST GROWING COMMUNITIES ON INSTAGRAMInstagram, worldwide

+ 836'342

+ 236'093

+ 198'481

+ 151'352

+ 104'868

+ 75'201

+ 69'873

+ 63'723

+ 39'968

+ 39'845

+ 36'776

+ 29'957

+ 23'806

+ 21'477

+ 16'017

Louis Vuitton

Tiffany & Co.

Hermès

Ralph Lauren

Hublot

Chopard

Bulgari

Van Cleef & Arpels

Audemars Piguet

Omega

IWC

Tag Heuer

Jaeger-LeCoultre

Harry Winston

Piaget


Number of new followers Q4 2014 Q/Q vs. Q3


HAUTE HORLOGERIESocial media overview

Number of fans/followers and engagement rate Q4 2014


WATCH & JEWELRYSocial media overview



COUTURESocial media overview



PRESTIGESocial media overview



HIGH RANGESocial media overview


On the occasion of Baselworld, Digital Luxury Group releases the WorldWatchReport™ 2015 Edition.

This report is an Excerpt. To get the complete information, purchase your copy of the WorldWatchReport™ 2015 Edition.

PURCHASE FULL EDITION

http://www.worldwatchreport.com/2015-edition/

APPENDIXGLOBAL TOP 50 RANKING




TOP 50 MOST SEARCHED LUXURY WATCH MODELSWorldwide



METHODOLOGY

OVER 500 MILLION SEARCHES MONTHLY…


… WITH PROPRIETARY INTELLIGENCE


Scope Definition(brands, markets, languages, segments, categories, destinations)

Dataset Research(collecting brand-related phrases, removing unrelated keywords, data harmonization)

Monthly Data Collection(exact match search volumes)

Semantic interpretation(mapping keywords with user intentions)

Extraction and analysis(Metrics definition and data visualization)

The billions of luxury-related online

searches made worldwide through the top

search engines (Google, Bing, Yandex,

Baidu) are collected, interpreted and

analyzed by our in-house proprietary

DemandTracker™ technology in order to

generate insights on the global luxury

industry.

Insights – Trends, Challenges and Opportunities

DLG PROPRIETARY INTELLIGENCE

Search Engines

Based on Google, Bing, Yandex in Russia and Baidu in China.

Search Queries

Extracted from search engines, the large amount of exact search queries collected every month for luxury brands encompass a large semantic field related to the brands, and include synonyms, plurals and misspellings. Over 500 million searches monthly.

Markets

The current geographic coverage includes the top 20 luxury export markets: Brazil, China, France, Germany, Hong Kong, India, Italy, Japan, Mexico, Qatar, Russia, Saudi Arabia, Singapore, Spain, Switzerland, Thailand, Taiwan, United Kingdom, United Arab Emirates, United States. Additional markets can be added upon request.

Languages

English, French, Italian, German, Japanese, Portuguese, Russian, Simplified Chinese, Spanish, Arabic and Thai.

Brands

+600 brands across 6 segments: Watches, Hotels, Fashion, Jewelry, Beauty, Cars.


For more information on methodology: www.worldwatchreport.com

http://www.worldwatchreport.com/

ABOUT DIGITAL LUXURY GROUP

Digital Luxury Group (DLG) is the digital partner of forward-thinking luxury brands. With offices in Geneva, New York and Shanghai, DLG combines leading brand intelligence with bespoke digital marketing services.

From creation to implementation, we empower brand strategies with our proprietary data and research. For more information: www.digital-luxury.com.

Since 2004, DLG has been publishing the WorldWatchReport™ a baseline market study for the watchmaking industry in partnership with Europa Star and with the precious support of the Fondation de la Haute Horlogerie.

Digital Luxury Group, DLG SA7 Avenue Krieg

CH-1208 Geneva Switzerland


http://www.digital-luxury.com/

DIGITAL LUXURY GROUP INTELLIGENCE TEAM


David SadighFounder & CEO

Raoul BeckChief Operating Officer

Jonathan CifuentesHead of Technology

Inès LazaroProduct & Marketing Manager

Marine ScullyMarketing & Intelligence

Robin HurniResearch Analyst

Inès Lazaro

Product & Marketing Manager

98

[email protected]

+41 22 702 07 51

http://www.linkedin.com/in/ineslazaro

© Digital Luxury Group

CONTACT

mailto:[email protected]

mailto:[email protected]

