Domestic Watch Market in Japan: Key Research Findings 2019
Yano Research Institute (the President, Takashi Mizukoshi) conducted a survey on the domestic clocks and watch market and found out the trend by product segment, noteworthy market trends, and future perspectives. This press release reports the analysis results of domestic watch market global market.
According to the data from JCWA, the Japan Clock & Watch Association, size of the domestic watch market for 2018 was 820,800 million yen, 102.5% of the size of the previous year, based on the retail price.
As diversified development and operations of multiple retail stores and shops worked successfully, which include renovation of existing stores as well as launching of new concept shops and direct-managed stores, the market saw strong sales especially in high-end products.
As for inbound tourism demand, the sales by Chinese customers stayed flat but those by the tourists from Thailand, Singapore, and Malaysia were on the rise, bringing about the market trends to be steadfast. In particular, the brands well-known in overseas or vintage revival watches, and Japan-limited ones sold well.
Luxury-imported watch brands have enhanced the operation of online stores at official websites, including some proactive attempts to increase online sales. Through the effective use of SNS, the brands addressed the issues of securing loyal customers and creating communication among the fans. This led to gradual increase in sales this year, contributing to expansion of the entire market.
Enhancement in Watch Subscription Services
As subscription services have been pervasive in every category of basic needs (food, clothing and shelter), the watch market is not an exception. Many businesses, mainly IT, have started providing subscription services for watches.
The subscription fees vary from 3 to 200 thousand yen per month according to the watch grades, but the main price range is between 5 and 10 thousand yen, affordable for most of the users. The services have earned a large following as they let the users to use high-end watches at reasonable amount of money, without charging the users for the dirt or the damage occurred during ordinary use. The services are raising expectations as an entrance to high-end timepieces.
The domestic watch market is expected to remain stable growth, because of several growth factors such as securing customers from Southeast Asian countries, newly exploring female customers, expansion of the smartwatch market, and emerge of Chinese millennials. The distance between brand operators and customers has become ever closer than before, which is making the brand operators and watch makers more important to acquire loyal fans.
Watches are likely to attract further attention with increase of sales channels such as commercial facilities at airports that have strong sales abilities, duty-free shops in cities (mainly located within department stores) that show gradual upturn in sales, and new commercial facilities in Shibuya where redevelopment projects are in progress.
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