The third edition of the comprehensive study indicates partial growth in purchase intent
The market research institute SINUS and marketing consultancy Responsio are pleased to present the third edition of Watch Monitor 2017. Following publications in 2013 and 2015, this comprehensive study is based on more than 7,500 interviews and thus provides a valid and representative overview of the German watch market. According to the latest findings, segments of the German watch market are on the up: the latest results show that watches are of great significance for German consumers with growing purchase intent, especially models in the price bracket of €10,000 upwards. Smartwatches are also increasingly popular.
Even more consumers were interviewed for the Watch Monitor 2017 than for the preceeding studies: 2,380 for the general adult population, and a further 5,300 for the so-called Exclusive Segment. The latter is characterised by above average purchase power: the Exclusive Segment represents consumers who are prepared to pay more than €1,000 for a watch.
According to Matthias Arnold, Associate Director Research & Consulting at SINUS, the survey is particularly significant due to its large sample size: “the third issue of the Watch Monitor proves that we can offer exclusive information with this survey. The success is based on the study’s highly valid and respresentative data of a quality that is unique for such a specialist market.”
Better understanding of consumers
The survey’s impact is further enhanced by another aspect: “we scrutinise German watch purchasers according to psychographic methods”, explains Matthias Arnold from SINUS. “We don’t just regard them as consumers but as human beings with individual values, goals and desires. In addition to general data about purchase behaviour, the study provides the option to look at watch purchasers according to diverse lifestyles, the Sinus-Milieus®. These help watch manufacturers and distributors identify which living environments define their customers; enabling them to sharpen their branding and better reach their client base.”
The Watch Monitor 2017 covers an immensely broad spectrum, purchase intent being just one example. This has seen growth overall, but particularly in two price segments. It has grown as much for watches under €150 as it has for those at the other end of the scale. According to the latest finding, significantly more consumers are prepared to spend over €10,000 for a watch – a total 23 per cent of the Exclusive Segment. “In our experience the increased purchase intent won’t be reflected in the market for another few weeks or months”, explains Frank-Michael Mueller, Managing Director of Responsio.
Watch Monitor: Which are the strongest brands?
Further aspects of the Watch Monitor include details of criteria that are important when planning a watch purchase, which brands are the best known and which the most popular. Brand strength is determined according to a model developed by research institute SINUS, taking into account values like brand awareness, liking, purchase intent and expenditure to calculate the “Brand Strength Index” (BSI). Rolex, Breitling and Fossil rank amongst the top three for both the general population and the Exclusive Segement. “The strong positions of brands like Casio (rank five) and Apple Watch (rank seven) in the Exclusive Segment may come as a surprise for many”, states Frank-Michael Mueller from Responsio.
Where do Germans buy their watches? Another question posed by the makers of the study who analysed all options even more comprehensively than before – from jewellery store and online shop to pop ups, as well as valuable regional information with awareness and customer satisfaction mapped for the jewellery and specialist trade.
Increasing potentials for smartwatches
As smartwatches are top of mind in the industry, the topic is also covered by the Watch Monitor. Questions about the interest in innovative products have been included for a fourth time. In January the entire potential came to a mere 36 percent; it has now reached its highest value to date with 51 per cent. A similar development can also be observed in the Exclusive Segment: here purchase intent for smartwatches currently stands at 69 per cent. “This proves that digitalisation has finallly reached the watchmaking industry and that we see the beginning of a market trend that showed hitherto tentative development”, claims Matthias Arnold from SINUS. “Which purchaser segments drive this trend and why some jump on the bandwagon faster than others – all this can be learned from our survey. It is by no means the case that the target groups of the future, who we can identify by means of Sinus-Milieus®, are stocking up on smartwatches. For some a smartwatch purchase is a status symbol synonymous with luxury, for others a smartwatch is merely an additional watch sympolising an interest in progress and technology. Trendsetter milieus in particular have discovered a vintage trend and value craftsmanship and good design if accompanied by the right story.”
According to Frank-Michael Mueller of Responsio, the smartwatch will still have a mid-term effect on the business development of the watch industry. “The Watch Monitor clearly shows that eight per cent of the general population and ten per cent of the Exclusive Segment believe that they will no longer require another watch in the future.”
Provided the source is clearly stated as Watch Monitor 2017, permission is granted for the use of quotes from the Watch Monitor 2017 for editorial puroses.
Contact: Responsio GmbH, Frank-Michael Mueller, Tel. +49 8122 1792860