Market Overview

According to Japan Clock & Watch Association, the size of domestic watch market based on retail price was 1,103.6 billion yen in 2023, 126.6% of the size of the preceding year. The growth owes to strong demand for luxury watches, especially from the young affluent segment, who proactively purchase these watches as real assets or investments in anticipation of future price increases. The re-evaluation of the environmental friendliness of mechanical timepieces and the recovery of robust consumption of high-end watches by inbound tourists also contributed to the market growth for three consecutive years. In addition to the above reasons, repeated price hikes due to soaring raw material prices and labor costs also helped the domestic watch market to flourish.  

Noteworthy Topics

Watch Subscription Services

Watch subscription services are in the spotlight. The service rents an expensive watch at a regular (e.g., monthly) fee. The service is membership-based because it requires continuous use. Membership has gradually grown, as the service has responded to customer needs such as trying out unaffordable watches, trying them before buying, or using them for special occasions such as parties. As watch subscription service providers have shifted from conventional watch manufacturers or brands to IT system developers or watch buying specialists, they have formed a new market. While service providers can make a stable profit from regular membership fees if they can attract enough members beforehand, they have the disadvantage of inflated costs needed to raise awareness.

Future Outlook

In 2024, the size of the domestic watch (wristwatch) market is forecast to increase by 10.2% year-on-year to 1,216.0 billion yen. While the recent expensive watch boom subsides, mid-level brands that offer more value (quality) than price are becoming more popular. Some of these mid-level brands have succeeded in attracting watch users by releasing new products of high quality at low prices. Therefore, the market size is forecast to grow more moderately than in the previous year.

It should be noted that the expansion trend of the market size in recent years has been affected by price hikes by individual brands stemming from increases in raw material prices, labor costs and transportation costs.

Research Outline