The Global Consumer's Interest for Haute Horlogerie Increases by 7%

Florent Bondoux, head of strategy & intelligence at Digital Luxury Group, shares the key insights from the WorldWatchReport™ Haute Horlogerie Preview

Each year, on the occasion of the Salon International de la Haute Horlogerie (SIHH), Digital Luxury Group unveils the results of the Haute Horlogerie category (18 brands) of the WorldWatchReport™, the leading market research in the luxury watch industry published in partnership with Europa Star, and the gracious support of the Fondation de la Haute Horlogerie.

This year, the key Haute Horlogerie trends identified were as follows:

1. Interest on the Up

Interest for Haute Horlogerie brands continues to grow (+ 7% year-over-year)

Compared to the previous year, the highest-end category of luxury watches, Haute Horlogerie, experienced a 7% increase in brand interest. This marks the third year in a row that the online interest of this highest-end segment of luxury watches has increased, showing the continued strength of haute horlogerie within the overall market.

2. Emerging Markets Drive

BRIC + Asian markets represent nearly 50% of Haute Horlogerie global brand interest

Of the 20 markets analyzed in the study, nearly half (47%) of global interest for Haute Horlogerie stems from in-the-spotlight markets Brazil, Russia, India, China, Singapore, Thailand, Hong Kong, and Taiwan. Mainland China on its own compromises 31% of the global demand or twice as much as the US market, increasing by 27%

Top 10 Most Sought-After Haute Horlogerie Collections (Jan-Sept 2012)

3. Mature Markets Wane

Consumer interest for Haute Horlogerie in mature markets, US and Japan, declining

A downward trend was observed in the weight that mature luxury watch markets the US (down by 10.6%) and Japan (down by 11.7%) represent in the global breakdown.

While relative share of demand has progressively shrank in the past 3 years in most established markets, for the first time since the report’s launch in 2004, an absolute decline in domestic demand in the US and Japan is observed.

“2012 has been a year of stabilization in the U.S. Affluents have been focused on the Presidential campaign and the tax hikes surrounding the fiscal cliff. Tourist shopping, notably from Latin America, should offset domestic demand slowdowns and represent a major growth driver in the region,” explains David Sadigh, Founder & CEO.

4. Patek Philippe Leads

Patek Philippe remains by far the leading Haute Horlogerie watch brand with 23.6% of brand interest share. Jaeger-LeCoultre takes the second spot with 12.7%, closely followed by Vacheron Constantin at 12.6%, Audemars Piguet at 9.2%% and Breguet at 7.7%.

Along with Richard Mille (see below), Vacheron Constantin and Patek Philippe also record the highest growth rates in brand interest year-over-year, with 26% and 10.2% growth, respectively.

The Most Popular Haute Horlogerie brands (Jan-Sept 2012)

5. Richard Mille Grows

Founded in 2001, the brand Richard Mille is the fastest growing haute horlogerie brand (up 61% over last year), followed by Vacheron Constantin (up 26%), and Patek Philippe (up 10.2%).

Assuming Richard Mille manages to keep its momentum and growth rate, the company could easily become one of the top 5 Haute Horlogerie brands by 2020. This is a brand with a strong breadth of exclusive products and an equally strong PR-driven marketing approach focused on events and celebrity endorsements. Richard Mille is a brand to watch.

6. Royal Oak Dominates

Audemars Piguet’s Royal Oak reinforces its leadership as the top watch model among Haute Horlogerie brands globally

The Royal Oak, reinforcing its leading position of last year, continues its reign as the most sought-after Haute Horlogerie watch model, increasing its online interest by 5% over the last year, likely an effect of the increased communications surrounding the icon’s 40th anniversary.

Though the Royal Oak leads globally, local preferences arise for other models in markets such as Japan (Girard-Perregaux’s 1945), China (Vacheron Constantin’s Overseas), and Russia (Blancpain’s Leman).

The full edition of the report, which this year will cover 60+ brands in 20 markets worldwide, will be available in April at the time of Baselworld. For more information regarding Digital Luxury Group’s full WorldWatchReport™, please visit www.worldwatchreport.com

To further investigate timepieces on Luxury Society, we invite your to explore the related materials as follows:

- Key Insights from 2012’s WorldWatchReport
- Luxury M&A Goes Vertical
- Luxury Without Limitation or Compromise: Steven Grotell