Lorre White, The Guru of Luxury

Important Developments at 2013 BaselWorld

Like every year, BaselWorld features great new products. If there are 1,400+ exhibitors and they all have an average of 15 new products, we’re talking about at least 21.000 new products.

How to make sense of all these new offerings? Here’s a guide to the most important developments this year.

Designs to Stand Out

With so many watch companies in the market today, it’s more important than ever for new watches to stand out, whether it’s through unique designs, technical prowess or unique materials. It’s no longer enough for a watch company to have simply a “me too” product. If it doesn’t make a statement, chances are it won’t get noticed.

Vintage, Classic and Elegant Continues to Dominate

The vintage/classical/elegant trend that surfaced when the world’s economic troubles began is continuing. Customers seem to be looking for watches that have attractive designs that can stand the test of time. At the same time, people seem to be looking for value for money and are willing to pay a premium (how much depends on the market) for a recognized brand name and high quality.

Technical Innovation

Doing things differently, from a technical standpoint, is certainly one way to stand out in today’s watch market. At Basel, there were two significant technical introductions. The TAG Heuer MikroPendulumS uses the magnetic escapement first introduced in TAG’s Pendulum concept system. There was a problem with the Pendulum, as it wasn’t stable in varying temperatures. TAG Heuer has solved this problem and put the pendulum system to work in a new double tourbillon concept watch. One tourbillon regulates the operation of the watch, while the other tourbillon handles the chronograph.

TAG Heuer MikroPendulumS, launched at BaselWorld 2013

While TAG Heuer was introducing magnets, Omega was fighting against magnetic forces, with its new Seamaster Aqua Terra >15,000 gauss. This new watch which can withstand magnetic fields greater than 1.5 tesla (15,000 gauss), far exceeding the levels of magnetic resistance by any watch movement previously. A true breakthrough, working to solve a problem that has plagued watches forever.

Women’s Watches

Women are becoming more of a force at the retail level, and it’s more and more important for brands to develop watches specifically for women. Take Patek Philippe, for example, where creative director Sandrine Stern has been developing interesting women’s complications, like the minute repeater and chronograph debuted in previous years. This year, one of Patek’s key introductions was in the same case style as the chronograph and the minute repeater, using a pure, high grade mechanical movement.

Mechanical watches for women are becoming more important, certainly in the Asia countries. As an example, Chopard chose to exclusively power its Happy Sport 20^thAnniversary edition with an automatic movement, complete with a sapphire crystal exhibition back to showcase the mechanics.

Where Has Yellow Gold Gone?

For many years, the return of yellow gold to watches has been forecasted – well, no more. This year at Basel, yellow gold was almost nowhere to be seen. White gold, rose/pink gold and red gold are at the forefront. Omega even introduced Sedna Gold, which is more resistant to discoloration (reddish gold eventually returns to yellow gold as the copper on the surface oxidizes).

Yellow gold might come back one day, but not this year.

Useful Complications

For several years, there has been a trend towards useful complications, features that will make people’s lives easier. This year’s BaselWorld was the year of the world time/GMT watch, a must for any world traveler or international business person. Many companies released world timers, but the most exciting were the watches from Citizen (Satellite Wave-Air), Omega (Aquaterra GMT), Seiko (Astron Limited Edition), Nixon (the Passport), Tissot (Heritage Navigator), Hautlence (the Destination) and Jacob & Co. (the Ghost).

Swatch 30^th Anniversary Watch

To celebrate the anniversary of the first Swatch models introduced in 1983, Swatch is doing it again. The new Swatch Est. 1983 is housed in a transparent plastic case with a skeleton dial that showcases the mechanical movement inside. The word “Celebrate” is printed twice on the golden driving wheel and around the dial are all the years from 1983 to 2013.

The introduction of this new entry level mechanical will introduce Swatch style to a whole new segment of the population, hopefully igniting the desire for mechanical watches in future generations.

Tudor in the USA

Tudor announced that it will be going back into the USA, after an absence of ten years. The announcement was very welcome, as Tudor is succeeding all over the world. Most people think that Tudor will be carried mostly in existing Rolex retailers, but the management of Tudor has been given some freedom, so some shake ups might be in order. Tudor has seen phenomenal success in key markets like China, but it also been absent from the United Kingdom for some time, so the British Isles might be next.

More USA: Shinola Debuts

Large scale watch assembly is back in the USA, with the debut of Shinola. With a beautiful booth in Hall 1.2, Shinola announced to the world that it is here and its watches are “Built in Detroit.”

A partnership between Swiss movement maker Ronda and Bedrock Manufacturing (founded by Tom Kartsosis of Fossil fame), Shinola fuses vintage designs with modern attention to detail, and the first collections from the company, the Runwell and the Brakeman, are good looking and priced well enough. It will be interesting to see if Shinola enjoys the phenomenal success that Fossil did.

 

 

 

 

 

 

 

 

 

 

 

 

Keith W. Strandberg, Contributor

www.cpp-luxury.com

The Dynamic Diversity of Independent Watch Brands At Baselworld 2013

Nine Innovative Watches From Independent Brands At Baselworld 2013

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The UTTE By Arnold & Son

The Swiss company with British heritage created what it says is the world's thinnest tourbillon watch. The case of this timepiece is 8.34 mm thick. It is equipped with the A&S8200 movement that is just 2.97 mm thick. The caliber was created in-house. It is available in a limited edition of 50 pieces.

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Baselworld's Complicated 'Opening Act'Anthony DeMarcoContributor

Many of these smaller innovative brands were housed inside a makeshift building known as the “Baselworld Palace.” The others were scattered among the 1,460 exhibitors located throughout the massive complex. The individuals who lead these small firms are highly skilled at combining the highest forms of modern watching with an advance design esthetic and a singular vision.

Their visions may be different, but these companies do share keen intellect, creativity and passion. Another thing they share is an equally passionate group of watch lovers who buy their products.

It was impossible for me to visit them all but what is presented in the slideshow are nine companies and their products as a representative sample of the technical prowess and artistry of these firms displayed at the recently-concluded tradeshow. They are a diverse group of individuals that even includes a prince. Several are from outside of Switzerland, although nearly all have set up shop in the world watchmaking capital. The exception is two German brands that remain in a country with its own watchmaking tradition.

 

 

 

 

 

 

 

 

 

Anthony DeMarco

Forbes

China Affair With Cheap Diamonds Heats Mass Market: Commodities

China’s burgeoning middle class is buying diamonds so quickly that the price of mass-market stones is rising faster around the world than for top-quality jewels affordable only to the super-rich.

Prices for a 1-carat (PLP44DBD) internally flawless “top white” diamond have gained about 7 percent in two years, while a stone of similar size and color with slight imperfections jumped 24 percent, according to consultant PolishedPrices.com data.

Enlarge image

A finished diamond at a diamond polishing factory in Shawan, Panyu District, Guangzhou, Guangdong Province, China. Photographer: Forbes Conrad/Bloomberg

“The Chinese consumer’s fascination with luxury goods has grown dramatically, along with their pockets,” said Angelito Tan, founding partner of Robert, Tan & Gao, a consulting firm on luxury market strategy with offices in Shanghai and Beijing.

The price jump in more flawed diamonds benefits producers such as Russia’s OAO Alrosa, the world’s biggest by volume with 30 percent of output in 2011, and De Beers, the largest by revenue. Chow Tai Fook Jewellery Group Ltd. (1929), a retailer with a $13.5 billion market value, said its average selling price dropped in the last six months as it sold more pieces.

Even as shoppers go down market in China, the world’s second-largest diamond buyer since 2011, the gap to top-flight stones is still large: A flawless 1 carat “top white” round diamond would cost about $28,800, according to online retailerBlue Nile, while a benchmark middle-market SI1-category diamond of the same size and color would cost about $7,200.

Taboo Disappears

China’s market was initially fueled by a rich elite pursuing the best diamonds available. As the economy grew, a new wave of buyers emerged, opening the market to lower-quality stones that form the bedrock of U.S. and European demand.

“The cultural taboo of having to buy the finest diamond is broken,” said Anish Aggarwal, a partner at Antwerp, Belgium- based industry consulting firm Gemdax. “Really high-quality was the sacred thing. You needed to buy fine diamonds, there was a snob effect. That has just disappeared.”

About 30 percent of Chinese sales last year were SI diamonds, the favored clarity of the American consumer, up from 5 percent about five years ago, according to producer De Beers.

China is now an SI market which is increasingly similar to the U.S., said Aggarwal. “Five years ago, that would have been unthinkable. The whole landscape in how diamonds are sold to consumers in China has changed.”

China surpassed Japan in 2011 to become the biggest diamond consuming nation behind the U.S. Retail sales of diamond jewelry jumped 18 percent to $9.2 billion in 2011. Sales in India gained 17 percent.

Four Cs

Buyers in those two countries accounted for about 20 percent of global diamond demand in 2011 and that will rise to 28 percent in 2016 as the market grows to $31 billion from $23 billion, according to Anglo American Plc (AAL), owner of De Beers.

While Chinese buyers have lowered their threshold, they haven’t dropped to the lowest quality used in jewelry, sometimes called Wal-Mart diamonds because U.S. buyers find them largely in the superstore. “The gap is narrowing,” said Stephen Lussier, executive director at De Beers. “The Chinese are moving into those mid-range goods.”

The broadest category of mass-market diamonds, known in the trade as “commercial,” has advanced 31 percent in the past three years compared with a 6.3 percent gain for the best gems, according to PolishedPrices.com. Mixed diamonds, the lowest grade used in jewelry, have gained 22 percent.

Diamonds are ranked by the four C’s: clarity, cut, color and carat weight. In terms of clarity, the highest quality diamonds are classed as flawless or internally flawless. Below that grade, the industry grades stones by their inclusions or blemishes: there are very, very small included, very slight included, slightly included, or SI, and included, or I, stones.

Massive Urbanization

About 230 million people moved to Chinese cities between 2000 and 2011, the greatest urbanization in history, according to the Chinese Academy of Social Sciences. These city dwellers’ average disposable income rose 13 percent last year to 2,047 yuan ($330) a month, according to the statistics bureau.

Sales of discretionary goods in China will grow by a compounded annual rate of 13 percent between 2010 and 2020, as shoppers in the world’s largest economy after the U.S. become richer, McKinsey & Co. said in a report in March 2012.

Rising demand will put pressure on stretched supplies. Diamond producers have struggled to find new large mines to replace aging assets. Production at many of the biggest mines is falling as supplies of more accessible diamonds near the surface are depleted.

Botswana Gems

De Beers’s Orapa mine in Botswana began output in 1971, while its Jwaneng project, the world’s largest diamond mine by production value, and Rio Tinto Group’s Argyle started in 1982. The last major mine to enter production was Rio’s Diavik in 2003. Global diamond production slid 8.5 percent between 2005 and 2008 to 161.1 million carats. Rough diamond prices gained about 12 percent in the first quarter after falling 16 percent last year, the first annual decline since 2008.

The use of diamonds may expand at double the pace of supply through 2020 because of China and India, according to Bain & Co., the consulting firm. Bain forecasts that supplies won’t return to pre-financial crisis levels until 2017.

As the Chinese market broadens and consumers there seek a wider variety of goods, that increases demand for more varieties in the spectrum of diamonds mined. While each mine is different, fine diamonds account for a small percentage of production, so increased sales of lower-quality stones provide the biggest boost to revenue.

‘Bullseye’ Diamonds

“For De Beers, the bullseye of our production is in those medium colors and clarities,” said Lussier. “It’s useful now that we have two markets capable of consuming them. That’s where the significant majority of our value lies. It’ll be the minority of stones, but the majority of value.”

As demand grows for lower quality goods, the prices rise and the cost gap between them and the next price point closes. This can encourage shoppers to step up to the next level of quality -- until the price gap widens again.

“Traditionally, it was quality, and in particular clarity, that was the most important consideration, now it’s much more of a mixed bag,” said Gemdax’s Aggarwal. “People have latched on to the fact that when you buy a lower quality diamond there is not always a big difference in appearance. There is however, a big difference in price.”

 

 

 

 

 

 

 

 

Thomas Biesheuvel in London

Bloomberg

Blancpain Baselworld 2013

2322-3631-55B- Le Brassus, Tourbillon Carrousel, calendar, power reserve up to 168 hours. Self winding movement.     2358-3631-55B For Baselworld 2013, Blancpain launched another world first complication, a women mechanical chronograph and a diver’s his and her collection. The most notable from the introductions is the complication, where Blancpain combined the tourbillon and the carrousel. These are two devices added to a mechanical movement to reduce the effects of gravity on it’s accuracy. For the first time, both of these time regulators are combined in a single watch by Blancpain, though it isn’t clear whether having two different regulators actually is an improvement or it’s meant to be another feather in Blancpain’s hat for have acheived another complication milestone.   3626-2954-58B – Women Chronograph, power reserve up to 40 hours. Self winding movement.     Bathyscaphe Duo – Since its creation in 1953, the Fifty Fathoms by Blancpain has been the archetypal modern diver’s watch. 60 years on, two new models join a fabulous lineage that has earned iconic status.

TAG Heuer Carrera MikroPendulum & MikroPendulumS debut at Baselworld 2013

Tag Heuer had presented the MikroTourbillonS as a concept watch last year, but it has gone ahead to further work with the horological engineering, and create the MikroPendulum watch for the Baselworld 2013 event. With work done by a 25-member team of scientists, engineers and designers from Tag Heuer's Haute Horologie workshop, it took nearly one decade to master this watch's tourbillon movement, which is the world's first magnet driven 100th of a second chronograph, and the first ever double magnetic tourbillon movement. In fact in 2012, the Carrera MikroPendulum watch was introduced as a concept timepiece with double chains, dual frequency, double barreled, and a double tourbillon chronograph, by far the most accurate and fastest tourbillon ever made. However, the company which made Mikrotimer Flying 1000 and the Monaco V4 series watches, is going to highlight one of it's finest creations at the Baselworld 2013 event.

 

Tag HeuerMikroPendulum watch with the first pendulum based design instead of traditional hairspring

 

The Carrera Mikropendulum is actually the name derived from the core movement which happens to the first based on a magnetic pendulum instead of the traditional hairspring design, which has been the trend for over 300 years of watchmaking. The COSC certified innovation, mainly curtails the problem that the effect of gravity on the hairspring movement, which reduces the accuracy of timekeeping of the watch. However, with the magnetic pendulum the loss of amplitude is dealt with precision. But then came, the issue of different thermal conditions, whereby the metals and other fabrication used in the watches' core movement behaved differently under different weather conditions. Hence, the team Tag Heuer at worked on creating the best possible combination, which has manifested itself in form of the MikroPendulum S watch.

 

Tag HeuerMikroPendulum watch caseback with the markings of it's rare pedigree

 

The casing on the MikroPendulumS is a sandblasted 45mm wide, chrome and cobalt alloy structure, which is covered with a double anti-reflective sapphire crystal cover. Half of the dial space is covered by a gray anthracite brush finished plate, which is housed just above the rose gold bridges of the dual pendulum movement. There is 100th of a second tracking meter, seconds counter, power reserve counter, and minute tracker.

 

Tag HeuerMikroPendulum S Watch with rose hands and bridges

 

All of these counters along with the bridges have the common use of 18K rose gold, where even the hands show a distinct contrast with the thin crafted design from the particular kind of gold. The wrist strap is gray hand-stitched anthracite alligator leather.

 

Tag HeuerMikroPendulum S Watch side view

 

 

 

 

 

 

 

 

 

 

Via: Watch U Seek/ Cool Hunting

Prada hosts The Great Gatsby costume exhibition in New York

Miuccia Prada and costume designer Catherine Martin are hosting a special exhibition of costumes for Baz Luhrmann’s upcoming film adaptation of The Great Gatsby. The exhibition will be on display May 1 - 12, 2013 at the Prada New York Epicenter at 575 Broadway in New York City.

Carey Mulligan and Leonardo di Caprio in ‘The Great Gatsby’ – costumes by Miuccia Prada and Brooks Brothers

Miuccia Prada and Catherine Martin created over 40 looks for the movie, each inspired by styles from the Prada and Miu Miu archives.

“Baz and Miuccia have always connected on their shared fascination with finding modern ways of releasing classic and historical references from the shackles of the past,” said Martin. “This connection is central to our relationship with Miuccia Prada on The Great Gatsby, and has connected our vision with hers. In the same way Nick Carraway reflects on a world that he is within and without, we have tried to create an environment that the audience will be subconsciously familiar with, yet separated from.” (vogue.co.uk)

Carrey Mulligan wearing a costume by Miuccia Prada in The Great Gatsby movie adaptation

The designs take the form of shimmering dresses, covered with crystals, fringing and sequins, in shades of emerald, jade, topaz and gold. Fabrics come in luxurious velvets and furs, with the story’s Twenties setting at the heart of each style. American brand Brooks Brothers has designed costumes for the movie’s male actors, such as Leonardo DiCaprio who plays the enigmatic Jay Gatsby and Tobey Maguire who stars as narrator Nick Carraway.

 

 

 

 

 

 

 

 

www.cpp-luxury.com

Omega Joins Patek Philippe Seeking Growth to Offset Slower China

Patek Philippe Chairman Thierry Stern had advice for Swiss watchmakers several years ago that most rivals didn’t heed: don’t overinvest in China. Amid the recent slowdown in China, the executive’s call has proved prescient.

Stern said everyone laughed at him when he decided to limit sales in that market to 130 pieces a year as brands including Omega and Cartier opened shops across the mainland. Patek is now selling about 3 percent of the 53,000 watches it makes annually to shops there, reserving the bulk of its production for traditional U.S. and European markets and making Chinese customers who want its watches travel to buy them. Stern warned two years ago that market would slow down.

“I said, I’m not willing to jeopardize the relationships that we have in the world with all the retailers and just to tell them, thank you for your help, but after a hundred years, now I go to China,” Stern said in an interview at the Baselworld trade fair. “So I decided, and it was courageous at the time, to say, well, China is the last one, so they will have what is left.”

The 14 percent decline in Swiss watch exports to China andHong Kong has led some rivals to report declines in overall sales and has led others like Omega to expand outside of the market. This month, Hermes International (RMS) SCA reported a decline in watch sales due to China, while LVMH Moet Hennessy Louis Vuitton SA (MC), the world’s largest maker ofluxury goods, said Chinese retailers have been purchasing fewer watches than expected. Greater China imported more than a quarter of Swiss watches last year, according to trade group statistics.

’Too Optimistic’

“Maybe they were too optimistic,” Stern said, referring to the competition in general.

Swiss watchmakers are bracing for a slowdown this year as Kepler Capital Markets forecasts the industry’s exports may increase 5 percent, which would be the worst performance since the 22 percent decline in 2009. The Chinese market has been shrinking as the administration cracks down on extravagant spending by government officials.

LVMH dropped 3.8 percent April 16 after saying weaker Asian demand contributed to the slowest growth in sales of fashion and leather products in more than three years. Revenue from watches and jewelry rose 2 percent in the first quarter excluding currency shifts and acquisitions. Patek Philippe, being closely held, doesn’t report sales or earnings.

Stern said he figured that Chinese clients who can afford 30,000 Swiss-franc ($32,000) products would buy them abroad instead. Chinese purchases make up as much as 20 percent of the watchmaker’s sales in Europe, according to the executive.

Omega is counting on markets such as the U.S., where it has 30 stores in cities including New York, Nashville and Pittsburgh. The brand, which is the official timekeeper of the Olympics, is also preparing for future growth in Russia and Brazil ahead of the games in those countries, President Stephen Urquhart said in an interview.

“The Chinese consumer is still there,” Urquhart said, adding Omega has continued adding shops in that market. “One thing certain, more and more Chinese are travelling” and buying watches abroad.

Swatch China

Swatch is diversifying within China by expanding its selection of low and mid-priced watches there. CEO Nick Hayek on April 25 unveiled a new model of mechanical watches called Sistem51 that the plastic watch brand will start selling worldwide in October for 100 Swiss francs to 200 francs.

“The Chinese market for the Swatch Group brands is very healthy,” he said. “There are billions of people in the world with no watches on their wrist.”

Hermes’s watch sales will rise this year as the company benefits from growth in Europe, the U.S., and Japan, said Luc Perramond, CEO of Hermes’s watch unit.

’Delicate Spot’

“China is in a delicate spot, but that can be compensated with other areas,” Perramond said. “We’ve got lots of markets that are becoming growth drivers, such as Middle East, Russia, Central Asia, India. In Southeast Asia, Indonesia will become an enormous motor for growth. Japan is also transforming itself” and has expanded at a double-digit pace.

Hermes has 20 stores in China and about that many “shops in shops” in other retailers. Over “the long-term I have no worries as the market has enormous potential. There’s a huge amount of wealth creation and purchasing power in the country each year.”

Indeed, there are still plenty of optimists betting that the slowdown doesn’t mean the end of the country’s potential.

“China has not even started,” said Jean-Claude Biver, chairman of Hublot, a brand owned by LVMH. “How many people in China can afford a Swiss watch? Nearly nobody. So we are in the beginning in the growth of China, of course, we have now a little slowdown, but believe me, the market will just go up.”

 

 

 

 

 

 

 

 

 

 

 Thomas Mulier in Geneva

Bloomberg

Kering (PPR) Acquires Jewellery Brand Pomellato

French luxury and sports brand group Kering – formerly known as PPR - said it bought Italian jeweler Pomellato for an undisclosed amount.

The company’s success is based on the personality and style of its creations with a blend of colors, stones and shapes as well as their fine Italian craftsmanship.

The Pomellato group is a profitable and growing Italian business with two brands, Pomellato and Dodo. The first positioned within the fine jewelry segment and the latter within the accessible jewelry segment.

Its distribution network includes 86 mono-brand stores (45 Pomellato, 41 Dodo) as well as approximately 600 independent points of sale around the world.

There is plenty of room for growth and Kering said its expertise and resources in real estate, distribution, media and brand management will help in that area.

PPR did not say how much it paid for Pomellato, which had 2012 revenue of 146 million euros ($190 million), but a banking source told Reuters last month the deal would value the business at around 350 million, or 15 times core profit.

The acquisition comes following Kering’s recent name change, and is the firm’s first investment since welcoming Christopher Kane into its stable of brands in January.

Within PPR/Kering, Pomellato will complement its other jewelry brands: high-end Boucheron, based on Paris’ Place Vendome, and Qeelin, a midprice Chinese jeweler PPR bought last year.

 

 

 

 

 

 

 

 

 

 

http://www.luxuo.com

Patek Philippe presents 40 new models at Baselword 2013

Swiss luxury watchmaker Patek Philippe is introducing 40 new models at this year’s edition of Baselworld, including an eight-day power reserve in the men’s Art Deco inspired Gondolo line as well as a new Calatrava ultra-thin dust-cover which has an entirely conceiled hinge, a real case complication. Over half of the new models presented are ladies’ timepieces, including the classic, sport elegant and complication lines. In 2014, Patek is celebrating its 175th birthday.

Patek Philippe, 5200 Gondolo ’8 Days, Day & Date Indication’, Baselworld 2013

 

 

 

 

 

 

 

 

www.cpp-luxury.com

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Global Consumer interest for luxury watches grew +3.3%, led by BRIC markets (+33.0%)

• Global consumer interest for luxury watches grew +3.3%
• China consolidates its leadership position with 1/4 of all global searches, growing by +36.0%
• BRIC markets show greatest year-to-year evolution (+33.0%)
• Swatch Group (+9.8%) overperforms luxury conglomerates
• “Haute Horlogerie” (+10.1%) and “Watch and Jewelry” (+7.7%) categories growing the fastest
• Gap between industry leaders Rolex and Omega narrows further

 

For the 9^th consecutive year, Digital Luxury Group releases the WorldWatchReport™, the leading market research in the luxury watch industry. After the release of the Haute Horlogerie preview (18 brands) of the report in January at SIHH, the complete 2013 edition (62 brands, 20 markets) is now available.

Global Consumer interest for luxury watches grew +3.3%, led by BRIC markets (+33.0%)
Global demand growth was fueled by BRIC Markets with the highest year-to-year increases in China (+36.0%), Brazil (+29.4%), Russia (+28.5%) and India (+19.7%). Early signs of demand decline were recorded mostly in historically established and mature markets: the United States (-11.6%), Europe
(-8.3%) and Japan (-13.6%).
“The numbers confirm a shift in demand growth drivers which started several years ago and which shapes the whole industry further towards localization. From product design, brand positioning to in-store service, luxury watch brands need to quickly adapt to client preferences from emerging markets to grow further”, explains Florent Bondoux, Head of Strategy & Intelligence at Digital Luxury Group.

China consolidates its leadership position with 1/4 of global demand
Ahead of the United States for the second year in a row, China’s appetite for high-end timepieces grew by +36.0% in 2012 despite reported retail slowdown. Biggest brands Rolex (#2, +97.8%), Cartier (#4, +71.6%) and Omega (#1, +70.4%) grew the fastest, notably due to higher exposure from inner-China regions where the fastest growth rates were observed.
According to Pablo Mauron, Digital Luxury Group’s General Manager China, “Despite a reported slowdown in the region often attributed to the reluctance towards government gifting, we can’t realistically forecast a significant market decrease in the mid-term as the fast growing middle-class, quick wealth creation from tier 2 and 3 cities as well as increasingly important travel spending are strong drivers that are here to stay.”

Swatch Group overperforms luxury conglomerates*
Strong performances from Omega, Longines and Rado in rapidly growing BRIC markets substantially contributed to Swatch Group performance figures. Conversely, LVMH and Kering (ex.PPR) watch brands analyzed in the report posted average declines of -4.4% and -10.6% respectively. Richemont Group remains close to the global positive trend (+2.1%).  

“Haute Horlogerie” and “Watch and Jewelry” categories are growing the fastest
Confirming results highlighted in January at SIHH, Haute Horlogerie brands – notably composed of Patek Philippe (#10, +16.7%), Vacheron Constantin (#19, +31.5%) and Breguet (#24, +8.6%) – were the fastest growing brands (+10.1%), followed by the Watch and Jewelry category growing by +7.7%, thanks to solid performances from Cartier (#3, +11.6%) and Piaget (#18, +12.94%). Exposure to Asia played a crucial role in fueling categories’ growth with 44% and 46% of demand respectively.

Gap between industry leaders Rolex and Omega narrows further
A sheer 2 percentage points in global demand separates the two watch industry powerhouses from each other, versus 8.4 % in 2009. Rolex continues to lead the Global ranking thanks to its domination in mature markets such as the US and Europe as well as the Middle East and India. Omega’s continuing leadership in large, fast developing markets such as China, Russia, and Latin America has helped it gain ground on industry leader Rolex.
 
Digital Luxury Group’s CEO, David Sadigh explains, “Omega is on its way to create a shadow over Rolex in the long run. Major sport event sponsorships, ubiquitous celebrity endorsements and a competitive product offering are some of the key ingredients for the Swatch Group brand to grow further. This could ultimately end up in reaching Rolex’s unmatched popularity 3 to 5 years from now.”
 
62 Brands

Haute Horlogerie: A. Lange & Söhne, Audemars Piguet, Blancpain, Bovet, Breguet, De Bethune, Franck Muller, Girard-Perregaux, Glasshütte Original, Greubel Forsey, Jaquet Droz, Jaeger-LeCoultre, Parmigiani, Patek Philippe, Richard Mille, Roger Dubuis, Ulysse Nardin, Vacheron Constantin. Watch and Jewelry: Bulgari, Cartier, Chaumet, Chopard, Harry Winston, Jacob & Co., Piaget, Tiffany & Co., Van Cleef & Arpels. Couture: Chanel, Dior Watches, Hermès, Louis Vuitton, Ralph Lauren. Prestige: Breitling, Corum, Hublot, IWC, Omega, Panerai, Rolex, TAG Heuer, Zenith. High Range: Baume & Mercier, Bell & Ross, Bremont, Carl F. Bucherer, Concord, Ebel, Eberhard, Frédérique Constant, Graham, Longines, Louis Erard, Maurice Lacroix, Montblanc, Perrelet, Rado, Raymond Weil, Romain Jerome, Sinn, TechnoMarine, Tudor, Vulcain

20 markets

Brazil, China, France, Germany, Hong Kong, India, Italy,  Japan, Mexico, Qatar, Russia, Saudi Arabia, Singapore, Spain, Switzerland, Taiwan, Thailand, United Arab Emirates, United Kingdom, United States

* All calculations are based on the 62 brands featured in the report.
**Date range for all data is Jan-Dec. 2012 and Jan-Dec. 2011 for Y/Y evolutions


About the WorldWatchReport™
The WorldWatchReport™ measures and benchmarks over fifty unique indicators to analyze the performance of 62 luxury watch brands across 2o international markets. 

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