World Watch Report

The Leading Market Research in the Luxury Watchmaking Industry
Since 2004
!
2014
MEDIA PARTNER
Cover by: Julien Mottaz, Watch designer
CHINA DATA PARTNER
The Leading Market Research in the Luxury Watchmaking

Industry Since 2004
!
A MARKET STUDY LIKE NO OTHER.
10th Edition
62 Luxury Watch Brands
20 Markets, including BRIC
1500 Models and Collections
250 Brand Ambassadors
Based on DLGs proprietary consumer interest tracking DemandTracker

technology
Published in partnership with Europa Star and the gracious support of the
Fondation de la Haute Horlogerie
For more information on methodology:

www.worldwatchreport.com
Digital Luxury Group, DLG SA, 2014

Industry Since 2004
!
TRACKING 62 OF THE MOST RENOWNED LUXURY WATCH BRANDS.

Industry Since 2004
!
IN THE TOP 20 MARKETS ACROSS THE GLOBE.

Industry Since 2004
!
KEY TRENDS 2013.
Despite a slowdown in sales in Asia, global consumer demand for luxury watches grew by
+5.7%.
The Chinese luxury market is not dead: Interest in all luxury watch categories continues to
escalate, led by Omega, Cartier and Rolex.
The Brazilian market fails to deliver amid high expectations (-2.9%) ahead of an important
year for luxury watch brands in the market (World Cup and Olympic Games in 2016).
Cie. Financire Richemont SA is the fastest growing conglomerate (+13% in online demand).
Ladies watches rise in popularity (+7.5%) led by China and Swatch Group brands.
Mobile Revolution: Instagram is the most engaging social media platform among watch
aficionados with nearly three times Facebooks average engagement rate, while in China,
searches for Haute Horlogerie brands using mobile phones increased by +120% according to
exclusive data shared by Baidu.

Industry Since 2004
!
GLOBAL CONSUMER INTEREST FOR LUXURY WATCHES GREW+5.7%.
Russia: 1.59%
" +20.43% (y/
y)
Germany: 7.04%
! -9.25% (y/y)
United Kingdom: 10.04%
" +3.12% (y/y)
United States: 20.69%

! -7.90% (y/y)
Mexico: 1.58%
! -9.32% (y/
y)
France: 5.92%
! -3.42% (y/
y)
Spain: 1.98%
! -16.24% (y/
y)
Switzerland: 1.82%
! -11.87% (y/y)
Italy: 5.61%
" +8.85% (y/y)
Brazil: 2.14%
-2.91% (y/
y)
Japan: 9.01%
! -5.54% (y/y)
Qatar: 0.24%
! -17.26% (y/
y)
China: 23.25%
" +59.43% (y/y)
Taiwan: 0.76%
" +4.02% (y/y)
India: 3.03%
" +12.05% (y/
y)
Saudi Arabia: 0.54%
! -9.18% (y/y)
Thailand: 2.17%
! -8.60% (y/
y)
Hong Kong : 1.20%

! -4.40% (y/y)
Singapore: 1.64%
! -8.45% (y/y)
- All calculations are based on the 62 brands featured in the report

- Date range for all data is Jan-Dec. 2013 and Jan-Dec. 2012 for Y/Y evolutions

Industry Since 2004
!
GLOBAL CONSUMER INTEREST FOR LUXURY WATCHES GREW BY+5.7%.
Global demand was fueled once again by BRIC markets with the highest
year-to-year increases in: China (+59.4%), Russia (+20.4%) and India
(+12.0%).
Historically established and mature markets such as Germany (-9.2%), the

United States
(-7.9%), and Japan (-5.5%), experience single digit
demand decline, whilst Italy (+8.8%) and the United Kingdom (+3.1%) see
growth in interest versus 2012.
The Brazilian market fails to deliver amid high expectations (-2.9%), ahead
of an important year for luxury watch brands in the market (World Cup and
Olympic Games in 2016). Despite growing international attention and key
events driving important brand related investments, the market predicted
to become the next big thing, fails to deliver on its promises.

Industry Since 2004
!
CHINA: INTEREST IN ALL LUXURY WATCH CATEGORIES CONTINUES TO ESCALATE.

Market growth
Top 3 Models
Top 3 Brands
+59%
Constellation
Omega
Ballon Bleu
Cartier
De Ville
Omega
Prestige category brands lead with 23.25% of global interest and account for a total of 41.5% total
demand in China.

Industry Since 2004
!
RICHEMONT GROUP IS THE FASTEST GROWING CONGLOMERATE.

Evolution of Luxury Conglomerates vs. Independent Brands
Y/Y 2012-2013
Richemont
+13.08%
Rolex
+12.02%
Swatch Group
+5.87%
Private
+1.49%
-0.97%
Kering (ex. PPR)
-4.88%
-5.43%
-18.71%
DKSH
LVMH Watches & Jewelry

Movado
Richemonts Maisons focus on Haute Horlogerie and Watch and Jewelry brands in its portfolio
benefited the group, thanks to rising interest in the categories globally (+13.2% and +13.0%
respectively) but especially among Asian markets and Chinese luxury travelers.


Industry Since 2004
!
HAUTE HORLOGERIE & WATCH AND JEWELRY CATEGORIES CONSOLIDATE FASTEST

GROWING POSITION.
Evolution of Category Search Breakdown
Y/Y 2012-2013
Haute Horlogerie
Watch and Jewelry
Prestige
Global
-1.38%
-3.99%
+13.16%
+12.95%
.
+6.17%
+5.72%
Couture
High Range
The Haute Horlogerie category grew the fastest (+13.16%) thanks to brands such as Glashtte Original
(#49, +35.27%), Ulysse Nardin (#30, +35.36%) and Vacheron Constantin (#13, +34.59%).
The Watch and Jewelry was the second best performing category, growing by +12.95%, thanks to solid
performances from Cartier (#4, +19.00%) and Piaget (#26, +26.46%).
Exposure to Asia played a crucial role in fueling categories growth with +23.66% and 43.14% of
demand respectively.

Industry Since 2004
!
TOP 15 MOST SEARCHED LUXURY WATCH BRANDS GLOBALLY.
20.79%
20.62%
.
10.78%
7.42% 6.86%
5.27%
3.95% 3.61% 3.45%

3.12% 3.07% 3.01% 2.55%
1.98% 1.82% 1.71%
Jan.2013 Dec. 2013

Industry Since 2004
!
TOP 10 FASTEST & SLOWEST GROWING LUXURY WATCH BRANDS.

2013 vs. 2012
Ulysse Nardin
+35.36%
Glash]e Original
+35.27%
Vacheron Constantin
+34.59%
Tudor
+27.93%
Piaget
+26.46%
Patek Philippe
+22.10%
A. Lange & Shne
+20.82%
Jaquet Droz
+20.36%
Blancpain
+20.16%
Cartier
Global
-17.79%
Sinn
-18.83%
Louis Vui]on
-19.06%
Bovet
Bell & Ross
-19.71%
Montblanc
-19.89%
Concord
-23.51%
-23.90%
-26.40%
+5.72%
Ebel
-18.69%
-19.35%
+19.00%
Technomarine
Tiany & Co.
Frdrique Constant
Jan.2012 Dec. 2013

Industry Since 2004
!
INTEREST IN LADIES WATCHES RISES.

Top 3 Ladies Watch Brands
Top 3 Fastest Growing Ladies Watch Brands
Interests in Ladies watches are led by BRIC countries China (+145.50%), India(+27.65%) and Russia
(+11.67%).
Haute Horlogerie leads the growth trend (20.88%) thanks to brands such as Vacheron Constantin
(+66.2%). The Prestige brands come in second (15.31%) thanks to the contribution of Omega (+88.3%)
and IWC (+15.97%).
Luxury conglomerates generated more attention for ladies watches especially for those with large
market shares such as Swatch Group (25.15%, +47.76%), Richemont (19.97%, +13.29%) and Rolex
(26.51%, +7.91%).

Industry Since 2004
!
CONSUMER INTEREST IN ICONIC MODELS CONFIRMED.

Watch and Jewelry #1
13th Global
Haute Horlogerie #1
20th Global
Prestige #1
1st Global
Couture #1
29th Global
High Range #1
35th Global
Ballon Bleu
Cartier
Royal Oak
Audemars Piguet
Submariner
Rolex
J12
Chanel
Jubil
Rado
Jan.2012 Dec. 2013

Industry Since 2004
!
FACEBOOK INCREASINGLY INFLUENTIAL BUT ENGAGEMENT STAGNATES.
;'(3(#-#'%853%#)
)"%!#$
)"!!#$
43'#"3$)
*+",-)
!"(!#$
!"#$%&$'()
2-#(3)
!"'!#$
!"#$%&'()
01*)
!"&!#$
9#'$%:)
5+&#6)
.,/&+%)
73(8.#,#")
!"%!#$
!"!!#$
$*$$$$
$%!!$!!!$$ $&!!$!!!$$ $'!!$!!!$$ $(!!$!!!$$ $)$!!!$!!!$$ $)$%!!$!!!$$ $)$&!!$!!!$$ $)$'!!$!!!$$ $)$(!!$!!!$$ $%$!!!$!!!$$
Facebook Volume of Fans
Brands regrouped nearly 69 million fans on Facebook, growing by +39.27%.

Rolex leads watch-only brand ranking with 1.7M+ Fans.
Brands stagnate in average interactions as engagement rate stabilizes (0.6%).
Jan.2013 Dec. 2013

Chart above shows Prestige
category brands

Industry Since 2004
!
INSTAGRAM THOROUGHLY DEFEATS FACEBOOK IN ENGAGEMENT RATE.

!"#$#%&%"'()$'%*
!#!*"
!#!)"
Audemars Piguet*
!#!("
!#!'"
Baume & Mercier*
Raymond Weil*
Tag Heuer*
Girard-Perregaux*
IWC*
Carl F. Bucherer*
!#!&"
Harry Winston*
!#!%"
Hublot*
Franck Muller*
Maurice Lacroix*
Piaget*
Omega*
Roger Dubuis*
Frdrique Constant*
!#!$"
!"
!"
%!!!!"
'!!!!"
!"#$%&'(()%
Bulgari*
Van Cleef & Arpels*

Jaeger-LeCoultre*
Jacob & Co.*
Chopard*
)!!!!"
+!!!!"
$!!!!!"
$%!!!!"
$'!!!!"
+",'$#-$&(./01&%(/2(3$",*
Brands regrouped nearly 3.4 million fans on Instagram.

Audemars Piguet generated the highest engagement with an average of 5.7% whilst Hublot led with
Jan.2013 Dec. 2013
the highest number of fans (117K)
Not taking into account
Instagram thoroughly defeated Facebook with nearly 3 times the average engagement rate. Couture category brands
and Tiany & Co.

Industry Since 2004
!
WATCH FORUMS MOST ENGAGING PLATFORMS AMONG COLLECTORS & AFICIONADOS.

Share of Posts Views by Forums
2013
Top 3 Brands on Watch Forums
Among top 3 analyzed watch forums, Chinese platform iWatch365 captures the lion share with 58% of the
106 million total forum post views, followed by pioneer TimeZone (37%) and PuristSPro (5%).
All 3 forums considered, Rolex, Omega and Patek Philippe are the most popular brands.

Industry Since 2004
!
EXCLUSIVE INSIGHTS ON THE CHINESE MARKET FROM BAIDU BIG DATA.
The #1 Chinese search engine
Big Data
Big Insight

Industry Since 2004
!
CHINA YEARLY TABLE OF CONTENTS.

Current state of the Haute Horlogerie watch industry in China
Mobile market growth
Mobile ranking & growth vs. previous year
Brand competition
Demand volume by province
Demand density by province
Chinese consumer search journey

Consumer search journey Intention comparison
Consumer search journey Triggers
Consumer search journey Ends
Consumer search journey Intentions before clicking E-commerce

Industry Since 2004
!
18 HAUTE HORLOGERIE WATCH BRANDS ANALYZED.

A. Lange & Shne
Franck Muller
Parmigiani
Audemars Piguet
Girard-Perregaux
Patek Philippe
Blancpain
Glashtte Original
Richard Mille
Bovet
Greubel Forsey
Roger Dubuis
Breguet
Jaeger-LeCoultre
Ulysse Nardin
De Bethune
Jaquet Droz
Vacheron Constantin

Industry Since 2004
!
Current State of the Haute Horlogerie

Watch Industry in China

Industry Since 2004
!
THE MARKET IS GROWING RAPIDLY.
Compared to 2012, we observe a market with +120% mobile growth in China in 2013
Mobile searches account for 39.1% of total searches in 2013
Year-to-year Mobile Growth of Searches for Haute Horlogerie Watches in China

(2012 & 2013)


Industry Since 2004
!
HAUTE HORLOGERIE MOBILE RANKING & GROWTH VS. PREVIOUS YEAR (2013 vs. 2012).
Brand
Most Searched Brands

on Mobile 2013
Brand
Fastest Growing Brands

on Mobile 2013
Patek Philippe
Richard Mille
Vacheron Constantin
Ulysse Nardin
Jaeger-LeCoultre
Girard-Perregaux
Audemars Piguet
Franck Muller
Breguet
Audemars Piguet
Franck Muller
Jaeger-LeCoultre
Blancpain
Roger Dubuis
A. Lange & Shne
Jaquet Droz
Glashtte Original
Glashtte Original
Girard-Perregaux
10
De Bethune
10
Ulysse Nardin
11
Patek Philippe
11
Richard Mille
12
Vacheron Constantin
12
Jaquet Droz
13
Breguet
13
Roger Dubuis
14
A. Lange & Shne
14
Parmigiani
15
Blancpain
15
Bovet
16
Greubel Forsey
16
Greubel Forsey
17
Parmigiani
17
De Bethune
18
Bovet
18

Industry Since 2004
!
BRAND COMPETITION.
In consumer searches, Patek Philippe and Vacheron Constantin are more correlated
than any other brand
German brands A. Lange & Shne and Glashtte Original are comparatively more
correlated
German brands
Multidimensional Scaling
S-Stress value=0.031 shows the mapping is reliable

Multidimensional Scaling (MDS) is a means of visualizing the level of similarity of individual brands based on comentioned searches

Industry Since 2004
!
DEMAND VOLUME RANKING BY PROVINCE.

Share of Searches by Province
(2013)
Top 5
Provinces
Share of Searches
2013
Guangdong
11.9%
Jiangsu
8.4%
Zhejiang
8.0%
Beijing
7.6%
Shanghai
7.4%
Share of Searches
0% 1%
2% 3% 4% 5% 6% 7% 8%


Industry Since 2004
!
DEMAND DENSITY BY PROVINCE.
7 provinces out of 31 outpaced the market average density
TGI
Density of Searches by Province

(2013)
Target Group Index TGIis used to measure density of searches which refers to the degree of search intensity
comparing with netizens average search intensity
- Mainland China Only - All calculations are based on the 18 brands featured in the report

Industry Since 2004
!
Chinese Consumer Search Journey

Industry Since 2004
!
CONSUMER SEARCH JOURNEY INTENTION COMPARISON (2013).

Share of Search Intentions


Industry Since 2004
!
CONSUMER SEARCH JOURNEY TRIGGERS.
As for previous searches, Brand and E-Commerce related keywords account for most
search volume respectively
Share of Searches Previous Searches


Industry Since 2004
!
CONSUMER SEARCH JOURNEY ENDS.
After searching with keywords related to any of the 18 brands, 45.5% of Chinese consumers
last clicks are on Baidu, especially Baidu Knowledge. A considerable number of Chinese
consumers is satisfied by the information received after clicking on advertisements.
E-commerce ranks the second with 20.7% clicks, therefore, is crucial as well
Share of Last Clicks
Baidu
45.5%
Baidu Knowledge
E-commerce
19.8%
20.7%
Baidu Paid Search
Brand Official Websites
12.4%
18.6%
NonBaidu
54.5%
Baidu Others
Vertical Websites
Others
13.3%
12.4%
2.8%


Industry Since 2004
!
CONSUMER SEARCH JOURNEY INTENTIONS BEFORE CLICKING E-COMMERCE.
Percentage of price intention is comparatively higher in previous searches before

clicking E-commerce
Share of Intention Searches before Clicking E-commerce


Industry Since 2004
!
ABOUT BAIDU INC.
Baidu is a world-leading search engine and the #1 search

engine in China.
80% of its market share is on PC and 70% is on mobile.
Baidus mission is to provide the most user-friendly and

most balanced way for people to find what they are
searching for online.
Baidus corporate values are Innovation, Technical Prowess

and Nobility of Mission. Its culture is simple and reliable.
Baidus 10-year objective is to become more accessible to

anyone, any time, anywhere.

Industry Since 2004
!
About Digital Luxury Group
WHO ARE WE
Digital Luxury Group (DLG) is the digital partner of forward-thinking luxury brands. With offices in Geneva, New York
and Shanghai, DLG combines leading brand intelligence with bespoke digital marketing services. From creation to
implementation, we empower brand strategies with our proprietary data and research. For more information:
www.digital-luxury.com. Since 2004, DLG has been publishing the WorldWatchReport a baseline market study for
the watchmaking industry in partnership with Europa Star and with the precious support of the Fondation de la Haute
Horlogerie.
Contact:
Laetitia HIRSCHY
Intl' Intelligence and Communications Manager

lhirschy@digital-luxury.com
Visit our website to get detailed information:
www.worldwatchreport.com or www.digital-luxury.com
Cover design by:

Julien Mottaz, Watch Designer
STEELCRAFT srl
e-mail: info@steelcraft.ch
www.steelcraft.ch
Kreaprod SA
www.kreaprod.ch
Digital Luxury Group, DLG SA

7 Avenue Krieg
CH-1208 Geneva
Switzerland

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The Leading Market Research in the Luxury Watchmaking Industry

Cover by: Julien Mottaz, Watch designer

CHINA DATA PARTNER

The Leading Market Research in the Luxury Watchmaking

A MARKET STUDY LIKE NO OTHER.

62 Luxury Watch Brands

20 Markets, including BRIC

1500 Models and Collections

250 Brand Ambassadors

Based on DLGs proprietary consumer interest tracking DemandTracker

For more information on methodology:

Digital Luxury Group, DLG SA, 2014

The Leading Market Research in the Luxury Watchmaking

TRACKING 62 OF THE MOST RENOWNED LUXURY WATCH BRANDS.

Digital Luxury Group, DLG SA, 2014

The Leading Market Research in the Luxury Watchmaking

IN THE TOP 20 MARKETS ACROSS THE GLOBE.

Digital Luxury Group, DLG SA, 2014

The Leading Market Research in the Luxury Watchmaking

KEY TRENDS 2013.

Digital Luxury Group, DLG SA, 2014

The Leading Market Research in the Luxury Watchmaking

GLOBAL CONSUMER INTEREST FOR LUXURY WATCHES GREW+5.7%.

United States: 20.69%

Hong Kong : 1.20%

- All calculations are based on the 62 brands featured in the report

Digital Luxury Group, DLG SA, 2014

The Leading Market Research in the Luxury Watchmaking

GLOBAL CONSUMER INTEREST FOR LUXURY WATCHES GREW BY+5.7%.

Historically established and mature markets such as Germany (-9.2%), the

Digital Luxury Group, DLG SA, 2014

The Leading Market Research in the Luxury Watchmaking

CHINA: INTEREST IN ALL LUXURY WATCH CATEGORIES CONTINUES TO ESCALATE.

The Leading Market Research in the Luxury Watchmaking

RICHEMONT GROUP IS THE FASTEST GROWING CONGLOMERATE.

LVMH Watches & Jewelry

- All calculations are based on the 62 brands featured in the report

Digital Luxury Group, DLG SA, 2014

The Leading Market Research in the Luxury Watchmaking

HAUTE HORLOGERIE & WATCH AND JEWELRY CATEGORIES CONSOLIDATE FASTEST

The Leading Market Research in the Luxury Watchmaking

TOP 15 MOST SEARCHED LUXURY WATCH BRANDS GLOBALLY.

3.95% 3.61% 3.45%

Jan.2013 Dec. 2013

Digital Luxury Group, DLG SA, 2014

The Leading Market Research in the Luxury Watchmaking

TOP 10 FASTEST & SLOWEST GROWING LUXURY WATCH BRANDS.

A. Lange & Shne

Digital Luxury Group, DLG SA, 2014

Jan.2012 Dec. 2013

The Leading Market Research in the Luxury Watchmaking

INTEREST IN LADIES WATCHES RISES.

Top 3 Fastest Growing Ladies Watch Brands

The Leading Market Research in the Luxury Watchmaking

CONSUMER INTEREST IN ICONIC MODELS CONFIRMED.

Jan.2012 Dec. 2013

The Leading Market Research in the Luxury Watchmaking

FACEBOOK INCREASINGLY INFLUENTIAL BUT ENGAGEMENT STAGNATES.

Brands regrouped nearly 69 million fans on Facebook, growing by +39.27%.

Jan.2013 Dec. 2013

The Leading Market Research in the Luxury Watchmaking

INSTAGRAM THOROUGHLY DEFEATS FACEBOOK IN ENGAGEMENT RATE.

Baume & Mercier*

Van Cleef & Arpels*