Men's Watch Industry Competitive Landscape

Part
01
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Part
01

Men's Mid-range Watch Market - Top Brands

The five top brands in the men's mid-range watch market based on revenue are Omega, Casio, Seiko, Longines, and Tissot.

Omega

  • Omega is the top-selling watch brand in the world producing mid-range watches, with annual revenues of $2.3 billion.
  • This company has been around since the 1800s and has been featured in many historical moments, such as the Olympic Games and featuring as the first watch on the moon. "Omega has incrementally developed its watches such that they feel simultaneously historical (though not anachronistic) and modern (though not trendy)." The brand is known for its innovative co-axial mechanism, which makes the watches smooth, accurate, and long-lasting. Omega watches are also known for precision timing.

Casio

  • Casio's watch segment, which accounts for 54% of the company's business, earns annual revenues of $1.57 billion.
  • "If tough, stylish, versatile, dependable and affordable is your thing, then Casio is your brand." Casio watches are known for several key features. For starters, they're stylish and affordable. Next, their G-Steel series, particularly the classic G-Shock watch, is nearly indestructible. In addition, the watches are high-quality, loaded with features, and highly resilient. This is also another brand that has stood the test of time, founded in the 1940s.

Seiko

  • Seiko earns annual revenues of $1.46 billion.
  • "In 1969, Japan’s Seiko introduced the first production quartz watch and changed the game overnight." Today, this brand is known for versatility, quality, and affordability. The company offers many different styles of watch, including some technical watches such as the Seiko Divers Watch for diving. "Within their portfolio (and among their subsidiary brands) you can find quartz, mechanical, solar and kinetic watches. Meanwhile, some of their luxury pieces are still produced entirely in-house."

Longines

  • Longines earns annual revenues of $1.2 billion.
  • Longines' "track record of producing respected chronograph movements such as the caliber 13ZN, which dates to the 1920s, justifies the brand’s place among the greatest watchmakers." This brand is known for making beautiful watches that are also highly accurate. The company has been partnered with professional ski competitions since the 1930s. "What all this amounts to is a truly seasoned mid-range watch brand that covers the full spectrum of aesthetics, mechanics, and traditions."

Tissot

  • Tissot earns annual revenues of $1.05 billion.
  • Tissot is known for a number of innovations, including the first pocket watch with two time zones, the first anti-magnetic watch, the first mass-produced pocket watch, and the first watches made of wood, mother-of-pearl, stone, and plastic. "Needless to say, all that history and expertise has amounted to tremendous success and watches that combine form and function with the utmost precision... For active men seeking premium style and sportiness in equal measure, look no further."

Research Strategy

To identify the top five brands in the men's mid-range watch market based on revenue, we first identified a short list of the most popular and respected brands in the men's mid-range market (based on the assumption that any top-performing brand will also be popular and respected). Then, we researched the revenue of each brand from credible sources such as company publications, industry reports, and press coverage, and narrowed the list down to the top five. Finally, we researched the value proposition of each brand using analyses from industry experts, media coverage, and company publications.


Part
02
of six
Part
02

Men's Mid-range Watch Market - Competitive Landscape 1

Below is an overview of Omega, Casio, Seiko, Longines, and Tissot, as well as their product offerings and information on their target market.

Omega 

 Casio 

 Seiko 

  • Seiko was founded in 1881 as a shop that sold and repaired watches and clocks in Tokyo, Japan. Seiko began producing wall clocks in 1892 and pocket watches in 1895, and has been creating wristwatches since 1913.
  • Today, Seiko's product offerings consist of six collections of watches for men and women. They are Astron, Prospex, Presage, 5 Sports, Coutura, and Diamond Collection.
  • Seiko's main customers used to primarily be Japanese, but the company is looking to now target "inbound tourists." Today, Seiko’s target clients are people who are searching for watches "in the mid-to-high price range." "These customers are not abundantly wealthy, but they also don’t stint themselves when it comes to paying for quality products that they trust and like," said Seiko's CEO Shinji Hattori.

 Longines 

  • Longines was founded in Switzerland in 1832 as an office that sold watches. In 1940, Longines made the first automatic watch and today, the company is "one of only five Swiss watch businesses said to sell more than $1 billion at retail annually."
  • Longines' product offerings consist of five collections of watches for men and women. They are Elegance, Classic, Watchmaking Tradition, Sport, and Heritage.
  • While Longines isn't known as a luxury brand, it produces a high "tier of watches in terms of quality and prestige." Some of its watches are priced at $16,000. Longines' target market are men and women who are mainly searching for "dress and casual watches." Most of the company's watches have a vintage look.

 Tissot 

Part
03
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Part
03

Men's Mid-range Watch Market - Competitive Landscape 2

Omega markets its brand through its story telling of its heritage with branded events, famous brand ambassadors. Cassio's brand marketing is more global as it is based in Japan, and it targets sports enthusiasts and outdoor adventure types with its durable offerings by sponsoring sporting events and by using athletic brand ambassadors. Insights and examples of both companies' brand marketing, product marketing, brand story telling, and social media campaigns are provided below.

Omega

Brand Marketing

Heritage Story Telling

Brand Ambassadors

Events for Brand Marketing

  • Omega markets its brand through elaborate events such as the Omega Apollo 11 50th Anniversary Celebration, which celebrated the upcoming 50th anniversary of the first human Moon landing. The event was heavily branded and attended by brand ambassadors such as George Clooney and Chiara Ferragni.

Product Marketing

Brand Story Insights

Social Media Campaigns

#SpeedyTuesday

Moonlanding Anniversary on Social Media

Casio

Brand Marketing

An Evening With G-SHOCK

  • On June 6, 2019, Casio G-SHOCK hosted a meet-and-greet with the G-SHOCK Founder Mr. Kikuo Ibe. He hosted a 30-minute presentation about the "history, inspiration, and future of G-SHOCK watches" for guests that RSVP'd, VIP guests, and G-SHOCK accounts. The event was held in Vancouver, Canada and the visit to North America by Kikuo Ibe was said to a very rare event.

Sponsor Sport Events

  • Casio sponsors sporting events to further its brand marketing as a durable watch for sport enthusiasts and millennials. Casio announced its pride in sponsoring the 2020 GoPro Mountain Games in celebration of mountain sports. The games are expected to be held in June in Vail, Colorado and features pro and amateurs that compete in 13 sport disciplines and more than 25 events, and the event draws more than 70,000 spectators.

Product Marketing

  • The company also runs TV and print ads. One print ad was featured in Watch Time in the 2020 issue and is pictured below.

Brand Story Insights

Social Media Campaigns

  • The Facebook shopping page for G-SHOCK has a tagline that reads, "We are G-SHOCK, and we make tough watches". Other posts by the brands for its products use words and phrases such as "built to conquer", "25 years strong", and "inspires confidence and toughness".

#ChallengeTheLimits

#21Seconds

  • The viral campaign targeted athletes to post a 21-second video of their best line to the social media, website, and voting platforms.
Part
04
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Part
04

Men's Mid-range Watch Market - Competitive Landscape 3

Seiko markets its brand through its collaboration with brand ambassadors, including Novak Djokovic and Jimmie Johnson.  Longines uses a promotional strategy for its product using brand ambassadors related to youth, who have a strong affinity to sports. Tissot promotion starts with the collection of watches, being marketed by brand ambassadors suitable for sports activities.

1. Seiko 

Brand Marketing

Brand Ambassador

  • The company's well-known brand ambassador is Novak Djokovic. The company has collaborated with Novak Djokovic to markets its timepiece brand that bears the name of a professional tennis player, Novak Djokovic.
  • The company promotes its watches as a sports brand. The company's brand marketing is done through collaboration with Novak Djokovic, who promotes the brand at Wimbledon by wearing the Seiko Astron GPS Solar Big-Date Novak Djokovic Limited Edition SSE143 watch.
  • In August 2018, the company launched the newest version, the Novak Djokovic Premier Astron Limited Edition 2018 watch, which shows the valuable screen time for the Astron wristwatches.

Product Marketing

  • Seiko spends under $100 million in digital, print, and national TV advertising. The company invests in premium ad units on over 250 different media properties across multiple media platforms. The company launched and advertised 9 new products in 2019-2020.
  • The company markets its products with the improvement of technology, which is Seiko Astron GPS. Seiko Astron GPS technology essentially catches a signal from a satellite radio more than 20,000 kilometers up in the sky.
  • Additionally, the company markets its product range of limited models, which are being advertised by celebrities, including Shohei Ohtani, a professional baseball player, and Novak Djokovic, a professional tennis player.

Brand Story Insights

  • Seiko function to become a leading company in global watch markets. Seiko undertakes branding and promotion that resonates well with customers.
  • With these efforts, the company focused on the substantial brand story by providing the collection of watches, such as Grand Seiko, Seiko Astron, and Seiko Prospex.

Social Media Campaign

"Every Second Counts:30"

  • The company launched a social media campaign to support its new watch collection series of Seiko, featuring professional race car driver and Seiko brand ambassador, Jimmie Johnson.
  • The campaign features a commercial that the new series of watch is the cross-section of sport and style for the man on the journey to blazing their path to success while maintaining an ultimate level of precision and accuracy.
  • The campaign advertises through print, out-of-home, digital display and video, and social media such a Facebook.

2.  Longines

Brand Marketing

Brand Ambassadors

Product Marketing

  • Longines spends under $100 million in digital, print, and national TV advertising. The company invests in premium ad units on over 100 different media properties across multiple media platforms. In February 2019, the company advertised a new product.
  • Longines gives its promotional strategy for its product using brand ambassadors related to youth-culture with a strong affinity to sports.
  • They have a global partnership agreement with Jung Woo Sung, a Korean actor, who encompasses the rich history with global brands.
  • The company runs an outdoor advertisement for its product on events specific to equestrian sports, including horse racing, jumping, endurance, and eventing. As part of its marketing efforts, the company has partnered with the International Federation of Horseracing Authorities and Federation Equestre Internationale with the idea to promote the Longines line of products at equestrian sports organized all over the world.
  • In 2019, the company marketed its collection of V.H.P. women’s models, which was advertised as the sporty and elegant". The products were promoted with the message that the new creations for women embrace an exclusive movement, which is capable of simplifying every facet of the women's experience.

Brand Story Insights

Social Media Campaign

#Longines campaign

  • The Facebook page features the social media campaign, #Longines campaign that is featured with Ambassador of Elegance, Chi Ling Lin.
  • The campaign features the Longines' collection of watches, which gives the message that elegance is an attitude.

3.  Tissot 

Brand Marketing

Sport Partnership

  • Tissot has been the official partner of the National Basketball Association since 2015. Tissot is committed to ambassadors, including Tony Parker, and Klay Thompson, the 18-season NBA veterans.
  • Out of the four major American sports, basketball is the most followed, loved, and inspiring sports for children and adults. Tissot profoundly believes in the promotion of its collection of watches for youth.
  • The company markets its brand with a vast collection of sporty and trendy watches dedicated to NBA teams with the most advanced swiss technology.

Product Marketing


Brand Story Insights

  • The Tissot brand understands that its longevity depends not only on its products but also on its customer base, its driving force, and its commitment.
  • The company's brand story starts with its collection of watches, being marketed by several models suitable for sports activities, others suited to a business environment, and some more elegant ones for social occasions. This approach is still followed by the brand.
  • Tissot watches are being worn by young people, including both men and women. Tissot watches, such as Tissot RockWatch and the Tissot Two Timer, helps in blurring the boundary between male and female genders.

Social Media Campaign

“This is your time”

  • The campaign features the brand ambassadors, including French NBA player Tony Parker and Chinese actor Huang Xiaoming, who reinforces Tissot’s position as a market leader in sports sponsorship.
  • The advertising campaign highlights the need to celebrate the turning point in our lives and to reveal the distinctive nature of every timepiece.
  • Tissot used its Facebook account to create the hashtag #ThisIsYourTime campaign, where Tony Parker showed his gratitude for partnership with Tissot.
Part
05
of six
Part
05

Men's Mid-range Watch Market - Demographics

The demographic profile of the consumer of men's mid-range watches is a male, between 25 and 54 years of age, with a college education. He most likely lives in an urban area and earns between $86,000 and $116,000. Below is an overview of the findings.

Age

  • The consumers of mid-range watches is between 25 and 54 years old making them millennials and Generation X. Different social media platforms give a different perception of the age group. On Twitter, especially millennial enthusiasts of this product are active, while on Facebook, Generation X in two of the three cases comes to the forefront closely followed by millennials.
  • Tissot is a mid-range watch brand. Its followers on Twitter are predominantly millennials and Facebook analytics show that those most interested in the brand are also millennials (25-34 years). Twitter analytics show that 71.1% of its followers are millennials, 21.6% are Generation X, 5.1% are baby boomers, and 3.1% are Generation Z.
  • Oris is another mid-range watch brand. Its followers on Twitter are also predominantly millennials as 65% are millennials, 27.7% are Generation X, 5.3% are baby boomers, and 2% are Generation Z. Facebook, however, shows that those interested in the brand are mostly younger Generation X-ers (39-44 years) followed by millennials (25-38 years).
  • Alpina is a third mid-range watch brand. Its followers on Twitter are predominantly millennials as 69.5% are millennials, 24.2% are Generation X, 5.2% are baby boomers, and 1.1% are Generation Z. However, Facebook analytics shows that those interested are Generation X (39-54 years) and millennials (25-38 years) in that order.

Gender

  • The main consumers of men's mid-range watches are, not surprisingly, males.
  • Tissot's followers are predominantly male. Twitter analytics show that 82% of its followers on this platform are male and 18% are female. This is confirmed by Facebook demographics which show that 86% of its demographics are male and the remaining 14% are female.
  • Oris's followers, like Tissot's followers, are predominantly male. Twitter analytics show that 89% of its followers on this platform are male and 11% are female. This is confirmed by Facebook demographics which show that 93% of its demographics are male and the remaining 8% are female.
  • Alpina's followers are predominantly male. Twitter analytics show that 82% of its followers on this platform are male and 18% are female. This is confirmed by Facebook demographics which show that 97% of its demographics are male and the remaining 3% are female.

Location

Income Level

  • Enthusiasts of men's mid-range watches have a wide range of occupations in different industries. Based on their occupations, the typical consumer's salary might range between $86,000 and $116,000.
  • Most of Tissot's enthusiasts are in a management function. According to the Bureau of Labor Statistics, those in management occupations have a median wage of $104,240. Interestingly, this type of profession requires at least a bachelor's degree (which corroborates the findings below).
  • Most of those interested in Oris watches are in the field of production. As most of those interested in the brand have attended college (see below), occupations in production they might be carrying out could be industrial production manager (which has a median wage of $103,380) or industrial engineer (which has a median wage of $87,040).
  • Most of those interested in Alpina watches are in the transportation and moving industry. As the typical education level shows that enthusiasts have a college degree (see below), occupations might be pilots and engineers. Airline and commercial pilots have a median salary of $115,670, while civil engineers (which include transportation engineers) have a median salary of $86,640.

Education Level

  • The typical consumer of men's mid-range watches has a college degree or has attended college.
  • Those most interested in Tissot have a college degree or attended college. Facebook analytics show that 65% of those interested in the brand have attended college, 25% have at least attended high school, and 10% have attended grad school.
  • Those most interested in Oris have a college degree or attended college. Facebook analytics show that 66% of those interested in the brand have attended college, 26% have at least attended high school, and 8% have attended grad school.
  • Similarly, those most interested in Alpina watches have a college degree or attended college. Facebook analytics show that 65% of those interested in the brand have attended college, 26% have at least attended high school, and 10% have attended grad school.

Research Strategy

To determine the demographic profile of the US consumer of men's mid-range watches, we first searched for this profile in industry reports, market reports, and trusted media articles but were unable to find such a profile mentioned in these publications. Next, we searched separately for each element of the demographic profile (age, gender, location, income level, educational level) in surveys and statistics (from reports, databases, and articles) but, again, we were not successful at finding data on these elements.

Last, we sought to construct a profile using social media analytics. We found a list of the best mid-range watch brands and chose 3 watch brands from this list. We made two assumptions. The first was that those following the brand on social media would also be consumers of the brand and, therefore, consumers of mid-range watches. The second was that the brands' combined consumer base would be reflective of the typical consumer of men's mid-range watches. We used Twitter and Facebook analytics to construct the profile. Concerning income level, we looked at the top occupation or industry the enthusiast on Facebook had and took the level of education into consideration. Based on these two inputs, we identified possible occupations and sought the income level for these occupations.
Part
06
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Part
06

Men's Mid-range Watch Market - SWOT Analysis

The market for mid-range men's market is growing strong, however, it is weakened by players who struggle to produce their products in an eco-friendly way and who struggle to differentiate themselves in terms of design. Despite these weaknesses, there is a lot of opportunity in this area in terms of expanding into new geographic markets and increasing consumer adoption by reaching consumers via social media and appealing to their desire for innovation. However, the market is threatened by a high level of competitiveness and dominating key players who have been around for generations, which likely makes it difficult for new entrants to emerge and gain footing.

Strengths

  • Men over the age of 45 with a household income between $50,000 and $100,000 who have a bachelor's degree and live in the suburbs are the primary demographic of watch wearers in the United States.
  • Mid-price watches are gaining market traction at an increasing rate, according to a 2020 global watch market report, published by Mordor Intelligence.
  • Mid-range smartwatches are retailing for $300-$500 in the U.S., which is helping to make these types of watches more accessible to consumers.
  • Within the general global watch market, the United States and Britain (and North America and Europe as a whole) hold the largest market share.
  • According to a report by Deloitte, in recent years, sales of mid-range watches have been growing the most across watch price ranges.
  • More consumers are becoming interested in watches in general, which is helping the market expand overall.

Weaknesses

  • Some mid-range men's watch brands, such as Welder Watches, focus primarily on designs that bulky and heavy-duty, which limits their consumer base.
  • Some makers of mid-range men's watches, such as Tissot, have come under fire from environmental organizations due to the impact of their manufacturing activities on the environment and their failure to address these impacts.
  • Some mid-range men's watchmakers, such as Tissot, have been noted as having designs that are easy for others to replicate. In addition to Tissot, mid-range men's watch brand, Sekio, also suffers from counterfeit imitations of their products.
  • Some mid-range men's watchmakers, such as Tissot, have been noted as having limited market share growth, due to the competitiveness within the market.
  • Due to competitiveness within the market, it can be difficult for some players in this industry to differentiate themselves, as is the case with brands such as Seiko.

Opportunities

  • There is an "increasing demand for value-for-product watches," within the global market.
  • Within the general watch market, the market sizes in South America and Africa are currently the lowest in the world, according to a 2020 market report published by Mordor Intelligence. Additionally, the APAC region, including Australia, has a medium-sized market for watches currently. This suggests there could be potential opportunities for growth in these regions.
  • Leading players in the global watch market are turning to social media platforms and other types of online distribution channels, as these are seen as key methods for attracting more consumers to their brands.
  • Only 18% of men in the U.S. currently use smartwatches, according to a recent Pew Research report, suggesting there is opportunity for growth in this area of the market. Additionally, only 32% of U.S. consumers wear a watch on a daily basis, suggesting there are lots of opportunities for growth in the watch market overall.
  • Within the general watch market in the U.S., the millennial consumer base has the greatest opportunity for growth.

Threats

  • In regard to the general, global watch market, the "market is highly fragmented," which suggests this is quite a competitive industry.
  • Leading watchmakers have been investing heavily in research and development in order to produce innovative products and also incorporate smart elements into their lines.
  • Many watchmakers are currently competing to offer affordable prices, while still providing watches with attractive designs and desirable features.
  • It appears that many key players in the mid-range men's watch market are very well-established brands, which have been around for generations. This suggests it the market could be difficult for new entrants to gain footing.

Research Strategy

In order to compile this research, we first began by attempting to locate any market reports, industry reports, consumer surveys and trusted media articles that directly address the topic of mid-range men's watches specifically. While no such source of information was located within, there was some information relevant to this watch segment found within reports about the general watch segment, however, this information was highly limited. Therefore, to help triangulate a deeper understanding of this segment, we conducted an analysis of some key players within this market, analyzed the men's and mid-range segments individually, and also included any insights relevant to the general watch market that was deemed to be logically relevant to men's mid-range watches in the U.S., especially considering that men with middle-class incomes are the largest demographic of watch consumers in the U.S. overall.
Sources
Sources

From Part 02
From Part 03
From Part 04
From Part 06