The negative impact of the grey market on the luxury watchmakers

With sales falling, more unsold timepieces are finding their way from the Swiss-dominated industry’s carefully controlled official retail networks to online platforms where they are often offered at steep discounts. Swiss watchmakers say they loathe this “grey market” because high discounts damage the meticulously crafted aura of prestige and make it harder to sell their goods at the full price. “In luxury goods, when you break the illusion of prestige, the dream, the prices, it takes away the confidence. It means slow death for luxury goods,” Jean-Claude Biver, head of [...]

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Millennial consumers are keen to ‘see now, buy now, wear now’

Younger consumers are without a doubt dictating how brands and retailers operate. The “distracted” generation has a much shorter attention span than other generations, and it turns out that the short attention span means fashion brands and retailers need to move faster for customers. New research from Kurt Salmon, part of Accenture Strategy, found that fast fashion brands must make speed and agility a top priority to remain competitive and keep up with consumers. Over half of all consumers surveyed wear new items within weeks of purchase and 15% wear [...]

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Swiss watchmakers expect a weak U.S. market in 2017

Swiss watchmakers expect the market to stay challenging this year with the United States, their second-biggest market, showing no signs of recovering, executives told Reuters at an industry fair in Basel. Swiss watchmakers are grappling with declining sales in their biggest markets — Hong Kong and the United States — and have been hit by tourist shoppers avoiding Europe for fear of extremist attacks. The trend for shopping online has also kept buyers out of stores, said Efraim Grinberg, chairman and chief executive of Movado Group Inc. “We see a [...]

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Integration between brick-and-mortar and web retailing – a priority for luxury brands

In 2016, the total number of luxury goods and services consumers worldwide reached 415 million, and they spent €860 billion. The tip of the pyramid is made up of 17 million individuals, nearly 4% of all luxury goods consumers. They spend between €36,000 and €50,000 per year in luxury items, and accounted for 29% of the world’s overall luxury goods purchases. According to the BCG‘s study, in 2023 their number will rise to 490 million, and they will spend €1.185 trillion. The market is expected to keep growing, though at [...]

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The future of luxury retail expansion

Luxury hubs such as New York, London, and Paris are very likely to sustain their density of luxury stores. But brands urgently need to examine the efficiency of their existing store networks—especially across Asia, and particularly in light of the effectiveness of e-commerce. Those are among the key findings from new research conducted jointly by The Boston Consulting Group (BCG), one of the world’s leading management consulting firms, and Bernstein, the research arm of AllianceBernstein. The research draws from BCG’s proprietary Metroluxe Index, which assesses opportunities for luxury sales by [...]

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