Market Overview

According to the Japan Clock & Watch Association, the size of the domestic watch market in 2022 based on the retail price was 871.4 billion yen, representing 122.1% of the preceding year. The growth for two consecutive years attributes to the affluent segment's strong interest in watches as investment assets, the recovery of inbound tourist demand, and the brands successfully attracted younger customers through social media marketing. The growth was driven by the stable sales of imported luxury watches, mainly Swiss watches, and domestic premium brand watches.  By channel, department stores—a main retailer of luxury watches—enjoyed strong sales.

Noteworthy Topics

Upscale Watches Drive Market Growth

The COVID-19 pandemic has sparked an increase in demand for luxury watches, particularly among Japan’s affluent. Several factors have contributed to this trend. Luxury watches have increasingly been viewed as tangible investment assets, supported by abundant global liquidity created through monetary easing. At the same time, a new segment of consumers emerged during the pandemic: individuals who had previously shown little interest in watches began purchasing them as an alternative form of discretionary spending when travel and other leisure activities were restricted. Notably, affluent younger consumers entered the market in significant numbers, often acquiring luxury watches with the intention of reselling them for profit. This influx of first-time buyers created a new source of demand and significantly expanded the luxury watch market.

Future Outlook

The size of Japan's watch market in 2023 (based on the retail price amount) is forecasted to reach 1.003 trillion yen (115.1% of the preceding year). Although relentless price hikes cool domestic consumption, the market is expected to remain robust with strong sales of high-end brands and core brands, while inbound tourist demand continues to grow.
Recently, watch retailers have started offering longer warranties, and brands are focusing on building stronger customer bonds through service. This emphasis on customer security and trust helps ensure the market keeps growing.

Research Outline