Market Overview

According to the Japan Clock & Watch Association, the domestic watch market in 2025 was 98.6% of the previous year at 1.2919 trillion yen, based on the retail price amount. Despite reduced demand from Chinese tourists visiting Japan, the market remained at the one-trillion-yen level for another year.

Demand in the domestic watch market remains stable, especially for high-end segment. Growing interest in mechanical watches, limited editions, and watches as investment assets has shifted competition from price to value, prompting manufacturers to strengthen their premium brands and broaden their upscale product portfolios.

However, the market is approaching a turning point. As relentless price hikes cool domestic consumption and inbound shopping trends shift, growth is likely to slow unless manufacturers elevate their brand image and continuously develop high-value-added products.

Noteworthy Topics

Enhancing Brand Community/Customer Experience

In the last few years, upmarket watchmakers have been placing emphasis on emotional connections with customers alongside enhancing product value. They actively communicate brand ethos and offer special experiences, such as product launch parties, exhibitions, popups, workshop tours, and owner-exclusive events to build a long-term relationship with customers. Personalized wait-on-customer through bookings for private shopping slots and offering VIP lounge at brand-operated stores are also frequently seen. Moving forward, sharing a brand’s history, craftsmanship, and distinct lifestyle will become increasingly vital to sustaining customer loyalty.

Future Outlook

The size of Japan’s watch market based on the retail price amount is projected to reach 1.33 trillion yen in 2026 (102.9% of the previous year). The market is poised for moderate growth, supported by sustained interest from inbound tourists, continuous rollouts of high-end and limited-edition models, and marketing focused on brand value and customer experience.
This trend is backed by recent price escalations stemming from increases in raw materials, wages, and logistics, as well as robust sales of high-end timepieces. Moving forward, the increase in market size will be driven more by value expansion rather than volume expansion.

Research Outline