Market Overview

According to the data compiled by Japan Clock & Watch Association, the size of the domestic watch market in 2021 was 713.9 billion yen based on the retail price, 114.6% of that of the previous year. In addition to the increase in the number of brands that successfully attracted younger customers through new marketing initiatives like influencer marketing via social media, luxury watch brands enjoyed strong sales driven by the increasing demand for investing in watches as tangible assets, which stemmed from the COVID-19 recession and other factors. Shrugging off the pandemic, the watches sold well mainly through distribution channels including department stores, watch specialty stores, and online stores.

Noteworthy Topics

Sustainable & Eco-friendly Watches Gain Momentum

In the last couple of years, brands have released a number of products that address SDGs/sustainability. They have shifted to the use of environmentally friendly materials, for instance, by adopting watch straps made with fruit skin or recycled nylon fishing net and replacing plastic packages with recycled paper packaging. Moreover, as seen in proactive involvement in environmental activities by donating some percentages of their sales, the manufacturers aim to realize sustainable social development along with the pursuit of their own business growth.

Future Outlook

The domestic watch market in 2022 is estimated at 830 billion yen, 116.3% of the previous year (based on the retail price). Boosted by the international trade show for the first time in two years and growing popularity of luxury sports watches, the watch industry is gaining momentum once again. As prolongation of the pandemic propelled the makers to shift from “branding strategy for higher cost-effectiveness” to “product differentiation strategy by adding more value to a product and raising prices accordingly”, competition is expected to intensify more than ever in the development of new materials and new mechanical structure. Furthermore, as the inbound demand is expected to pick up again, the domestic watch market is forecasted to grow steadily hereafter.


 

Research Outline