In an economic climate often viewed as challenging and austere, it is fascinating to learn that London's luxury watch market has experienced a significant boom in the past year.
GfK, a market research firm, has discovered that the watch market experienced a 16% increase in 2013 for timepieces costing over £3,000. The average spend on a watch in the UK was found to have risen to £6,931 from a previous average of £6,672. In London, however, the average spend was far higher at £8,058.
This boost is believed to be driven by a more informed consumer who is far more engaged with the watch industry and the true value of luxury timepieces, which are often viewed as legacy pieces for the future. Many of these engaged customers are highly interested in the watch industry itself and the work that goes into each high-end timepiece, as well as the history and value of some of the most famous brands.
This has greatly boosted demand for watches at the higher end of the market, as individuals become more aware of what they are actually investing in and the craftsmanship involved in each individual piece. Many watches are bought as collector's items and stored for their value, and some collectors will invest in hundreds of timepieces, seeking out those with the most fascinating history, technology or quality of workmanship.
The survey findings were reported in The Telegraph and paint a fascinating picture into the true state of London's economy, and potentially its duality. The trend is believed to be driven by the new breed of super-rich, many of whom are making their home in London, and increased access to information about the value, availability, and craftsmanship of watches. With greater styling, limited-edition lines, extreme luxury and the ultimate in engineering credentials, high-end watches are becoming ever more popular.
Watches of Switzerland
Marking this boost to the luxury watch market, Watches of Switzerland are opening a watch store on London's Regent Street. The incredible flagship store will boast three floors, each of which will be designed to specifically target a different segment of the luxury watch buyer's market. The 'Calibre Room' will host twenty-three luxury watch brands that are designed to appeal to a broad spectrum of collectors. Another will showcase individual boutiques from a number of retailers, whilst the top floor will be home to the most sought-after grand complication pieces.
The fact that the store is located in Regent Street means that it will naturally attract shoppers with the biggest budgets, with this part of London's retail estate now boasting a broad range of high-end luxury good retailers. The existence of this store, which some might have imagined unthinkable five years ago in the heart of the credit crunch, just goes to show how important watches have become, and especially those with historical and engineering credentials. Increasingly, watches are the accessory of choice to demonstrate the buyer's sophistication and taste and allow the wearer to identify themselves as a connoisseur of the finest brands and production.
Brands on display will include the five big names — Omega, Rolex, Breitling, TAG Heuer and Longines — which make up 80pc of sales in the luxury market. Rolex holds 70pc of the market at the £5-£10k spend mark, while Patek Philippe and Rolex hold an incredible 70pc share of the market for watches costing £10k plus.
