Table of Contents
Chapter 1 Executive Summary
- How We Define and Segment This Market
- Orientations to Other Industries
- Overall Watch/Clock Sales Retreat to $7.1 Billion in 2005
- Overall Market to Surpass $7.8 Billion in 2010
- Watch Category Slides to $6.1 Billion in 2005, in "Context of Struggle"
- Watch Category to Top $6.7 Billion in 2010
- Clock Category Levels to $990 Million in 2005
- Clocks to Slog on to $1.1 Billion in 2010
- Table 1-1 U.S. Retail Dollar Sales of Watches and Clocks, 2001-2010(In
Millions)
- Market Buffeted by Rival Devices and Amusements During 2001-2005
- ...But Evidence of a Buying Cycle Offers Hope
- Factors in Future Growth: Workplace, Home Arenas Morph and
- Overlap
- Factors in Future Growth: Other Time Readouts Are Everywhere
- Factors in Future Growth: Fashion, Interior Decoration, Licensing, Are
Positive Drivers
- Factors in Future Growth: Demographic Potentials Dulled by Other Time
Readouts...
- Boomers
- Teens/Tweens
- Table 1-2 Projected U.S. Population, by Age Bracket, 2005-2020(In
Thousands)
- Factors in Future Growth: Hybrid Products, Sports, Tech May Buoy Niches
- Factors in Future Growth: The Nike+ iPod Sport Kit
- Watch Marketing/Product Trends: Licenses, Acquisitions Are Ongoing...
- Watch Marketing/Product Trends: Wide Bands
- Watch Marketing/Product Trends: Large Faces, Though Moderated...
- Watch Marketing/Product Trends: It's Diamond City!
- Watch Marketing/Product Trends: Asymmetrical Design
- Watch Marketing/Product Trends: Ceramic and Ceramic-and-Stainless Watches
- Watch Marketing/Product Trends: Jewelry Extensions
- Clock Marketing/Product Trends: More of the (Infinitely Varied) Same...
- Clock Marketing/Product Trends: Lots of Licensing for Kids - Though Yoga
Mommies Resist It
- Watch Brand Rankings: Watch Category Poorly Monitored...
- Watch Brand Rankings: Timex, Though Still Dominant, Has Lost Ground
- Watch Brand Rankings: Fossil, Citizen, Seiko Still Lead Second Echelon
- Watch Brand Rankings: Rolex Is Top Luxury Brand
- Table 1-3 U.S. Purchasing of Watches, by Brands Studied by Simmons,
2003-2005 (Adults in Thousands, in Recent 12 Months)
- Watch/Clock Advertisers Spend $233 Million in 2005 - Mostly to Help Watches
- Rolex Still Leads Top Five Watch Advertisers
- Loews/Bulova and Movado Split the Small (Measured) Clock
- Ad Spend
- The Consumer: A Third of All Adults Purchase Watches
- The Consumer: Female Gender, Affluence, Older Kids All Favor Watch Purchase
- The Consumer: Watch Purchase Concentrated in Under $50 Price-Segment
- Table 1-4 Numbers of Watch Purchasers, by Watch Price-Segment, 2005
(Adults in Thousands, in Recent 12 Months)
- The Consumer: As Watch-Price Goes Up, So Does Income - And Propensity of
Male Buyers
- The Consumer: The Young Have Surprising Affinity for
- Pricier Watches
- The Consumer: Over Half of All Households Own Clock Radios
- The Consumer: Five Million Households Recently Purchased Clock Radios
- The Consumer: Factors in Clock Radio Ownership versus Recent Purchase
Chapter 2 The Overall Market
- KEY POINTS
- Introduction
- How We Define and Segment This Market
- Focus Chapters on Sports and Kids' Watches
- Various Terms Clarified
- Market versus Category versus Segment
- Mass Retail
- Combo Store, Department Store, E-Tailer, Mass Merchandiser, Specialty
Store, Supermarket
- Methodology
- Two Categories: Watches and Clocks
- Several Ways to Class Watches
- Clock Types
- Orientations to Other Industries
- Market Size and Growth
- Overall Watch/Clock Sales Retreat to $7.1 Billion in 2005
- Market Buffeted by Rival Devices and Amusements
- ...But Evidence of a Buying Cycle Offers Hope
- Watch Category Slides to $6.1 Billion, in "Context of Struggle"
- Clock Category Levels to $990 Million in 2005
- Table 2-1 U.S. Retail Dollar Sales of Watches and Clocks, 2001-2005 (In
Millions)
- Watches Account for 86% of Watch/Clock Retail Dollars
- Factors in Future Growth
- Workplace, Home Arenas Morph and Overlap
- Other Time Readouts Are Everywhere
- Fashion, Interior Decoration, Licensing, Are Positive Drivers
- Watch/Clock Purchasing Occurs in Cycles
- Demographic Potentials Dulled by Other Time Readouts...
- Boomers
- Teens/Tweens
- Table 2-2 Projected U.S. Population, by Age Bracket, 2005-2020 (In
Thousands)
- Hybrid Products, Sports, Tech May Buoy Niches
- Travel Conditions
- Projected Overall Watch/Clock Sales
- Overall Market to Surpass $7.8 Billion in 2010
- Watch Category to Top $6.7 Billion
- Clocks to Slog on to $1.1 Billion
- Table 2-3 Projected U.S. Retail Dollar Sales of Watches and Clocks,
2005-2010 (In Millions)
- Consumer Advertising Expenditures
- Watch/Clock Advertisers Spend $233 Million in 2005 - Mostly to Help
Watches
- Rolex Still Leads Top Five Watch Advertisers
- Loews/Bulova and Movado Split the Small (Measured) Clock Spend
Chapter 3 The Watch Category
- The Products
- Packaged Facts' Four Watch Price Segments
- Mass-Market Watches (Under $50)
- Middle-Market Watches ($50-$299)
- Upper Middle-Market Watches ($300-$999)
- Luxury Watches ($1,000-Plus)
- Watches Also Classed by...
- Power: Mainspring versus Quartz-Electronic
- Face: Analog versus Digital
- Function
- Application
- Style
- What Determines Price
- About Watch Cases...
- Waterproofing
- Jeweled Movements
- Attachments: Bands, Bracelets, Straps, Cuffs...
- Watch Category Size and Growth
- Watch Category "Corrects" to $6.1 Billion in 2005
- Mass-Market Segment in Rare Slip to $2.3 Billion
- Mid-Mart Slides Under $2 Billion Mark
- Upper Mid-Mart Holds Head Up, Reaches $776 Million
- Luxury Watches Retreat Below $1.1 Billion
- Table 3-1 U.S. Retail Dollar Sales of Watches, by Price Segment,
2001-2005 (In Millions $)
- Watch Why and Wherefore: Rival Devices Offer Status, Service, and the
Time
- ...But Take Heart: A Natural Cycle Is Also at Work
- Watch Units Hover Near 90 Million
- Table 3-2 U.S. Retail Unit Volume of Watches, by Price Segment,
2001-2005 (In Millions)
- Average Retail Price Trends Lower
- Table 3-3 U.S. Average Retail Price of Watches, by Price Segment,
2001-2005 (In Millions)
- Sales by Watch Application/Type: Fashion Is Top Concern...
- Table 3-4 Share of U.S. Retail Dollar Sales of Watches, by Watch Type or
Application, 2005 (Dollars in Millions)
- Specialty Stores Command a Third of Watch Dollars
- Table 3-5 Share of Retail Dollar Sales of Watches, by Channel, 2005
- Northeast, Southeast, Pacific Regions Are Home to Most Purchasers
- Table 3-6 U.S. Retail Purchasing of Watches, by Marketing Region,* 2005
(Adults, in Thousands)
- Swiss Watches Account for Up to a Quarter of Retail Action
- Factors in Future Growth
- The Specter of Devices That Rival Watches
- The Hope in Fashion Watches
- The Limited Hope in Hybrid Products: "My Watch Is a Heart Monitor"
- The Cycle: "I Lost/Broke/Grew Tired of My Watch"
- The Effect of Travel Conditions
- Watch Category to Reach $6.7 Billion as of 2010
- Mass-Market Watches to Ascend to $2.5 Billion
- Middle-Market Segment Watches to Break $2.1 Billion
- Upper Midmarket in Sluggish Climb to $839 Million
- Luxury Watches to Capture $1.2 Billion
- Table 3-7 Projected U.S. Retail Dollar Sales of Watches, by Price
Segment, 2005-2010 (In Millions $)
- The Marketers
- Hard to Distinguish Marketers From Licensors From Distributors
- About 400-500 Marketers
- Only 15 U.S. Watchmakers
- Types of Players: Specialists Predominate...
- Some Marketers Are Retailers, Too...
- Premiums Frequently a Sideline
- Table of Marketers, Brands, Price-Segment Involvements
- Table 3-8 Selected Marketers of Watches and Their Representative Brands
- Watch Brand Rankings
- Special Note: Watch Category Poorly Monitored...
- Timex, Though Still Dominant, Has Lost Ground
- Fossil, Citizen, Seiko Still Lead Second Echelon
- Rolex Is Top Luxury Brand
- Table 3-9 U.S. Purchasing of Watches, by Brands Studied by Simmons,
2003-2005 (Adults in Thousands, in Recent 12 Months)
- Marketing and Product Trends
- Licenses, Acquisitions Are Ongoing...
- Wide Bands
- Large Faces, Though Moderated...
- It's Diamond City!
- Asymmetrical Design
- Ceramic and Ceramic-and-Stainless Watches
- Jewelry Extensions
- Table 3-10 Selected Introductions of Watches, by Marketer and Brand,
2004-2006
- Consumer Advertising Expenditures and Positioning
- Watch Advertisers Spend $233 Million in 2005
- Rolex Leads Eleven Spenders of $10 Million-Plus
- Henri Stern Leads 14 Other Million-Dollar Spenders
- The Fashion Treatment
- Celebrity Endorsements
- Watch Product Attributes
- Status and Identity
- The Experiential
- Charity
- Watch Trade Shows
- In a Retail-Driven Category, Shows Are Key
- BaselWorld Watch & Jewelry Show
- CARAT: International Jewelery, Precious Stones and Watch Trade
Exhibition and Fair
- Eclat de Mode
- Hong Kong Jewelry & Watch Fair
- Inhorgenta
- JA New York
- The JCK Show
Chapter 4 The Clock Category
- The Products
- Three Main Clock Segments
- Electric
- Mechanical
- Clock Radios and Other Hybrids
- Other Ways to Classify Clocks
- Housings in Thousands of Styles
- "Atomic" Clocks? Still Never Heard of Them!
- Clocks Often Grouped With Housewares, Furniture, Giftware, Etc.
- Clock Category Size and Growth
- Clock Sales Level Off to $990 Million in 2005
- Clocks Hurt by Rival Devices and the "Casino Factor"
- Table 4-1 U.S. Retail Dollar Sales of Clocks, 2001-2005 (In Millions $)
- Clock Radios Still Yield a Quarter of Clock Dollars
- Regionality of Clock Radio Sales
- Table 4-2 U.S. Retail Purchasing of Clock Radios, by Marketing Region,*
2005 (Households, in Thousands)
- Factors in Future Growth
- Clocks Needed in Every Home ...But Lots of Other Devices Tell Time
- The Casino Factor: No More Clocks in Public!
- Licensing Powers Fashion, Decor, and Kids' Clocks
- Households, Homebuilding, Home Improvements: All Positives!
- Table 4-3 Construction Starts of Privately Owned Housing Units,
1998-2005 (In Thousands)
- Projected Clock Sales
- Clocks to Break $1.1 Billion Mark in 2010
- Table 4-4 Projected U.S. Retail Dollar Sales of Clocks, 2005-2010 (In
Millions $)
- The Marketers
- About 200 U.S. Clock Marketers
- And Only Dozens of U.S. Clock Manufacturers
- Table 4-5 Number of U.S. Manufacturers of Clocks for the Home, by Clock
Type and Value of Shipments, 1997-2002 (Dollars in Thousands)
- Clock/Watch Specialists Predominate Here, Too...
- Table of Clock Marketers and Brands
- Table 4-6 Selected Marketers of Clocks and Their Representative Brands
- Clock Marketer/Brand Rankings
- Timex, Salton Assumed to Dominate
- Other Brands Stand Out in Niches
- Marketing and Product Trends
- More of the (Infinitely Varied) Same...
- Kids' Clocks: Lots of Licensing - Though Yoga Mommies Resist It Table
4-7 Selected Introductions of Clocks, by Marketer and Brand, 2004-2006
- Consumer Advertising Expenditures and Positioning
- Most Clock Ad Spends Are Hidden...
- Small Spends by Loews/Bulova and Movado
- Clock Trade Shows
- Shows for Clocks/Watches, Housewares, Gifts, Furniture, Home Electronics
- All Apply...
- BaselWorld Watch & Jewelry Show
- Duty Free Show of the Americas
- High Point Furniture Market
- Inhorgenta
- JA New York
- The JCK Show
- New York International Gift Fair (NYIGF)
- New York Spring Tabletop Market
- Tokyo International Gift Show
Chapter 5 Focus on Sports Watches
- KEY POINTS
- The Products
- Sport-Specific, or Just Plain Rugged
- Water-Resistance Claims Must Be Substantiated
- Most Sports Watches Never See Action...
- Fitness Watches That Monitor Vital Signs
- Sports Watch Segment Size and Growth
- Sports Watches in Up-and-Down Progress to $1.7 Billion in 2005
- Today a Willow Valley, Tomorrow a New Peak - It's a Cycle
- Table 5-1 U.S. Retail Dollar Sales of Sports Watches, 2001-2005 (In
Millions)
- Sports Watches Account for 28% of All Watch Dollars
- Factors in Future Growth
- Health, Fitness, Sporting Trends All Positive
- Table 5-2 Top 10 Sports/Fitness Activities, by Adults Participating,
2005 (Adults in Thousands, Within Recent 12 Months)
- Extreme Sports Come Into Their Own
- High-Tech Watches That Monitor Vital Signs to Stay a Limited Niche
- Projected Sports Watch Sales
- Sports Watches to Climb Past $1.9 Billion in 2010
- Table 5-3 Projected U.S. Retail Dollar Sales of Sports Watches,
2005-2010 (In Millions$)
- Sports Watch Marketers
- Most Marketers Offer Watches With Sports Functions
- Table of Marketers and Brands
- Table 5-4 Selected Marketers of Sports Watches and Their Representative
Brands
- Marketing and Product Trends
- Fitness Watches: A Time of Weeding Out What Does/Doesn't Work
- Sports Watches Cross-Breeding With High Fashion
- Table 5-5 Selected Introductions of Sports Watches, by Marketer and
Brand, 2004-2006
- Consumer Advertising Expenditures and Positioning
- Sports Watch Advertisers' True Spend Is Deeply Hidden...
- ...But Breitling Spends $10.1 Million
- Some Other Sports Watch Ad Spends
- Endorsements by Star Athletes
- The Fashion (Beauty-Shot) Approach
- Identity
- Phenomenal Performance
- This Watch Takes Your Pulse
Chapter 6 Focus on Kids' Watches
- The Products
- Three Distinct End-User-Bases: Teens, Tweens, 7 & Unders
- Kids Love Plastic
- Analog versus Quartz-Electronic/Digital
- Kids' Watch Segment Has Lots of Product Niches
- ...And Mucho Licensing
- Most Tween and Under-7 Watches Mass-Mart Priced
- Teens' Watches See Rising Average Price
- Kids' Watch Segment Size and Growth
- Kids' Watch Segment Steadies at $749 Million in 2005
- More Kids, More Money, More Competition From Rival Devices
- Table 6-1 U.S. Retail Dollar Sales of Kids' Watches,* 2001-2005 (In
Millions $)
- Kids' Watches Account for 12% of All Watch Dollars
- Factors in Future Growth
- The Evergreen Audience: Kid Population Always Trends Larger
- Table 6-2 Projected U.S. Population, by Age Bracket, 2005-2020 (In
Thousands)
- ...As Kid Spending Power Always Trends Higher
- Tons of More Grandparents!
- But Rival Gadgets, Amusements Vie for Kids' Dollars
- Licensing to Keep Driving Segment
- Projected Kids' Watch Sales
- Kids' Watches in Push to $864 Million by 2010
- Table 6-3 Projected U.S. Retail Dollar Sales of Kids' Watches,*
2005-2010 (In Millions $)
- Kids' Watch Marketers
- Some Marketers Keep Kids' Segment Involvements Quiet
- Table of Marketers and Brands Table 6-4 Selected Marketers of Kids'
Watches and Their Representative Brands
- Marketing and Product Trends
- For Kids' Watches, It's Still Licenses Galore!
- Table 6-5 A Sampling of Current and Future Popular Licenses*
- Consumer Advertising Positioning
- Lots of Soft-Positioning Watches to Kids
- The Fashion Approach
- A Trend to Promos?
Chapter 7 The Competitive Situation
- Competitive Profile: Fossil, Inc.
- Net Sales Break $1 Billion in 2005
- Fossil's the American Swatch
- Competitive Profile: Loews Corporation/Bulova
- Revenues of More Than $16 Billion in 2005
- Watches and Clocks That Vouch Solidity, Tradition
- Three Licensed Brands
- Competitive Profile: Montres Rolex S.A.
- Estimated Sales of $350 Million
- Right From the Start, a Very Public Luxury Marketer
- Careful Diversification of the Line
- Competitive Profile: Nike, Inc.
- Net Revenues Approach $14 Billion in Fiscal 2005
- Third Quarter, 2006 Revenues Indicate Another Bullish Year
- Brilliantly Extending High Style From Sports Function
- Nike's Surprise Venture with Apple
- Nike the Retailer
- Competitive Profile: Swatch Group
- Sales of Almost CHF4.3 Billion in 2005
- CEO Hayek Positions on Emotionality, Beauty, Poetry
- Swatch Extending Watch Brands With Jewelry
- Swatch Diversifying Its Retail Stance
- Competitive Profile: Timex Corporation
- Sales of At Least $800 Million
- Giving the Masses Sophistication
- Timex the Retailer
- Amazon Signs on as Timex's Webmaster
Chapter 8 Distribution and Retail
- Distribution and Retail
- Watch and Clock Product Paths
- Vertical Integration, and Mass versus Limited-Distribution Strategies
- Specialty Stores, Department Stores Lead Watch Sales
- Table 8-1 Share of Retail Dollar Sales of Watches, by Channel, 2005
- Mass Merchandisers Control Over Half of Clock Dollars
- Table 8-2 Share of Retail Dollar Sales of Clocks, by Channel, 2005
- A Fifth of Watch Shoppers Do Web Research First
- Top Streetwear Chains
- Table 8-3 Top Ten Streetwear Chains, by Numbers of Stores, 2004
- Cartier Looks Anew at Women
- Clocks in the "Home Accents" Retail Channel
- Create Your Own Watch
- Retail Focus: Cooper & Company, Inc./Dakota Watch Company
- A Major Mass Retailer With Its Own Brands
- Unintimidating, Plus Services/Programs for Consumer Loyalty
- Retail Focus: Tourneau, Inc.
- Over 100 Watch Brands in 8,000 Styles
- Tourneau Watch Gear
- Tourneau Allies With Swatch in U.S., Peace Mark in China
- Tourneau Certifies Pre-Owned Watches for Online Auctioneer Portero
Chapter 9 The Consumer
- About Simmons Survey Data
- What They Are...
- ...And How to Use Them
- The Survey's Overall Adult Gauge
- Marketing Regions Defined
- Northeast
- East Central
- West Central
- Southeast
- Southwest
- Pacific
- Table 9-1 Projections of Numbers of U.S. Adults, by Demographic Factor,
2005(In Thousands)
- The Watch Consumer
- A Third of All Adults Purchase Watches
- Female Gender, Affluence, Older Kids All Favor Watch Purchase
- Table 9-2 Demographic Characteristics Most Favoring Purchase of Any
Watches,** 2005 (Adults in Thousands, in Recent 12 Months)
- Over 52 Million Buy Watches for Themselves
- Almost 31 Million Buy Watches as Gifts
- Table 9-3 Numbers of Watch Purchasers, by Purchase for Oneself or For
Gift-Giving, 2005 (Adults in Thousands, in Recent 12 Months)
- Profiles of Purchasing for Oneself versus for Someone Else
- Table 9-4 Demographic Characteristics Most Favoring Purchase of Watches
for Oneself, or as Gifts, 2005 (Adults in Thousands, in Recent 12 Months)
- Watch Purchase Concentrated in Under $50 Price-Segment
- Table 9-5 Numbers of Watch Purchasers, by Watch Price-Segment, 2005
(Adults in Thousands, in Recent 12 Months)
- As Watch-Price Goes Up, So Does Income - And Frequency of Male Buyers
- The Young Have Surprising Affinity for Pricier Watches
- Presence of Kids Is Important
- Table 9-6 Demographic Characteristics Most Favoring Purchase of Watches,
by Price Segment, Under $20 to $49 (Adults in Thousands, in Recent 12 Months)
- Table 9-6b Demographic Characteristics Most Favoring Purchase of
Watches, by Price Segment, $50 to $99 (Adults in Thousands, in Recent 12
Months)
- Table 9-6c Demographic Characteristics Most Favoring Purchase of
Watches, by Price Segment, $100 to $299 (Adults in Thousands, in Recent 12
Months)
- Table 9-6d Demographic Characteristics Most Favoring Purchase of
Watches, by Price Segment, $300 to $500+ (Adults in Thousands, in Recent 12
Months)
- Timex, Fossil, Citizen Are Most Widely Purchased Watch Brands
- Table 9-7 U.S. Purchasing of Watches, by Brand, 2005(Adults in
Thousands, in Recent 12 Months)
- Consumer Focus: The Teen Watch Consumer
- Almost 9.2 Million Teens Purchase Watches
- African Americans, Hispanics Stand Out in Overall Teen Watch
- Purchase
- Table 9-8 Demographic Characteristics Most Favoring Purchase of Watches
by Teens (Aged 12-17),** 2005 (Teens in Thousands, in Recent 12 Months)
- Over 8 Million Teens Buy Watches for Selves
- In Teens' Watch Purchase for Selves, Only Blacks Are Prominent
- Almost 3 Million Teens Buy Watches as Gifts
- Teen Watch-Gifters Skew to Girls, Blacks, Hispanics
- Table 9-9 Demographic Characteristics Most Favoring Purchase of Watches
by Teens (Aged 12-17) According to Purchase for Oneself, or as Gifts, 2005
(Teens in Thousands, in Recent 12 Months)
- No Surprise: Most Teens Buy Watches Priced Under $50
- Table 9-10 Numbers of Watch Purchasers, by Watch Price-Segment, 2005
(Teens in Thousands, in Recent 12 Months)
- As With Adults, Girls Buy Cheaper Watches, Boys Buy Pricier Ones
- Table 9-11 Demographic Characteristics Most Favoring Purchase of
Watches** by Teens (Aged 12-17), by Price Segment, Under $20 to $49 (Teens
in Thousands, in Recent 12 Months)
- Table 9-11b Demographic Characteristics Most Favoring Purchase of
Watches** by Teens (Aged 12-17), by Price Segment, $50 to $74 (Teens in
Thousands, in Recent 12 Months)
- Table 9-11c Demographic Characteristics Most Favoring Purchase of
Watches** by Teens (Aged 12-17), by Price Segment, $100 to $200+ (Teens in
Thousands, in Recent 12 Months)
- Timex, Fossil the Most Popular Teen Watch Brands
- The Sports Watch Audience
- America's Most Popular Sports/Fitness Activities: Walking and Swimming
- Table 9-12 Top 48 Sports/Fitness Activities, by Adults Participating,
2005 (Adults in Thousands, Within Recent 12 Months)
- The Clock Radio Consumer
- Special Note: This Section Speaks of Households, Not Individuals
- Over Half of All Households Own Clock Radios
- Five Million Households Recently Purchased Them
- Factors in Ownership versus Recent Purchase
- Table 9-13 Demographic Characteristics Most Favoring Household Ownership
or Purchase of Clock Radios, 2005 (Households in Thousands, in Recent 12
Months)
Chapter 10 Trends and Opportunities
- Watch/Clock Marketing Strategies Becoming More Mainstream
- Has the Timekeeping Industry Reached a Plateau, a Crossroads - a Crisis?
- But What's Outside the Box?!
- Branching Out Into Other Products May Be Wise
Appendix I Glossary
- Alarm
- Analog
- Ana-Digital
- Anodized Aluminum
- Attachment
- Band
- Bezel
- Bracelet
- Case
- Chronograph
- Chronometer
- Crown
- Crystal
- Cuff
- Digital
- Elapsed Time Ring
- Face
- Impact or Shock-Resistant
- Jewels
- Pusher
- Quartz Movement
- Tank
- Tourbillon
- Water-Resistant
Appendix II: Addresses of Selected Marketers
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