Australian Luxury Watch Market Experiences Strong Growth

Competition in the premium watch sector is heating up, giving many customers a great chance to grab a bargain. While many commentators prophesised the end of the wrist watch with the rise of ubiquitous mobile phones, in fact many people still prefer to wear a wrist watch, even if they could just as easily check the time on their phone. What the analysts dismissing the wrist watch as ananachronism forgot is that people love the aesthetic and style appeal of owning a Diesel mens watches or other fashionable watch brand. Watches are one of the most ubiquitous accessories in business in particular, being discreet and subtle yet at the same time conveying an unmistakable status message of dignity and taste. Therefore, even as watches become less and less useful in day to day life, being replaced with both near universal take up of mobile phones and the increasing number of screens all around us with the time tucked away in the corner, the luxury watch market is growing. 

Although Australia’s appetite for Burberry watches is still not as developed as that in many other countries, the sales in the luxury watch market grew by a remarkable twenty five per cent between the years 2010 and 2012: still below the global trend of thirty six point nine per cent growth in luxury watch sales year on year reported by a Swiss trade association of luxury watch makers. Surprisingly, the appetite of consumers for lower end fast fashion watches has also remained steady, although it is not experiencing anything like the extreme boom in sales that is occurring at the premium high end of the watch market. People are still inclined to buy cheaper watches as a fun and relatively affordable piece of accessory jewellery. Thus, why fewer people are now reporting that they wear a watch every day when compared with years gone by, people are still buying much the same number of watches because they like to have a bit of variety to accessorise with for events such as functions.

Marc Jacobs watches are another popular and fashionable choice among Australian consumers. However, sources report that much of the growth of the luxury watch market in Australia can actually be attributed to Chinese tourists stocking up while over here. While prices in Australia are generally not cheap in comparison to the rest of the world, Chinese tourists who were already visiting Australia for a holiday often will buy luxury goods such as watches here in order to avoid the hefty import duties that are levied on these goods as they come in to China. Another explanation for the growth is an increasing popularity of luxury watches among middle aged Australian men, for whom watches are one of the more traditionally acceptable forms of luxury jewellery that can be purchased.

Edwin Navarro

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