According to a new report by Morgan Stanley, the Swiss watch group including Swatch Group, Rolex, and watch brands under LVMH and Richemont accounted for a total of Swiss watch sales in 2017 This shows that the market share of large groups is still relatively high-end.
Top 20 Swiss watch sales in 2017
In the past, Vontobel was the only financial institution that produced the annual report of the Swiss watch industry. Their report integrated the analysis and analysis of bank survey results by industry insiders and outside observers, and found out that some brands generally like hidden data, especially turnover. And annual output. But since April 2018, another bank, Morgan Stanley, has begun working with LuxeConsult, and they have developed a keen interest in the watch industry and have developed their own annual assessment statements.
Six billionaires in 2017
Morgan Stanley launched their report through an analysis of market share: ‘According to our estimates, of the approximately 350 watch brands in Switzerland, only 6 have a turnover of more than 1 billion Swiss francs in 2017, including Rolex, Omega, Cartier, Longines, Patek Philippe and Tissot. ‘(According to Bennahmias, CEO of Audemars Piguet, Audemars Piguet’s sales in the first quarter of 2018 increased by 9% year-on-year, reaching 12 months only at the end of March 2018 The quota rolling benchmark reached the threshold of 1 billion Swiss francs). This report details the turnover of individual brands. The list starts with Rolex. Its 2017 net sales are estimated at CHF 3.9 billion and sales of 770,000 watches.
2017 Pie Chart Group Market Share Pie Chart
The second highest on the list is OMEGA, with an estimated sales of 2.27 billion Swiss francs. The brand sold 730,000 watches last year. Their annual production is close to that of Rolex, although the average price of each watch is almost its main competition. Opponent’s half. Cartier ranked third with sales of 1.67 billion Swiss francs, with a total of 472,500 watches sold. As observed by Morgan Stanley, the pressure on sales of the brand’s watches in recent years has been huge, resulting in a phenomenon of inventory repurchase in 2017. It is worth noting that in the sales structure of Cartier products, the proportion of watches from 50 in 2012 The percentage dropped to 30% in 2017. So the brand hired Cyrille Vigneron as CEO and shifted its strategy to focus the brand on formal and women’s watches, which seemed to be the way to turn the situation. Morgan Stanley estimates Cartier’s market share in the Swiss watch market to be 5.6%. The next few brands with sales of more than 1 billion Swiss francs are Longines (sales of 1.47 billion Swiss francs and 1.9 million watches), and Patek Philippe (sales of 1.265 billion Swiss francs and 56,000 watches). ) And Tissot (with sales of 10.71 billion Swiss francs and 3.1 million watches sold).
Top Private Brands
These preliminary estimates suggest that watch retail groups dominated by a few multinational companies are still relatively popular. Their total sales are estimated to be 42 billion Swiss francs. The four major groups, including Swatch, Richemont, LVMH and Rolex, account for more than 75% of the Swiss watch retail market. In order, Swatch Group accounts for 29.1% and Richemont Group It accounted for 19.7%, Rolex’s 19.4%, and LVMH’s 7.9%. According to Morgan Stanley, the Swatch Group is becoming increasingly dependent on star brands such as Omega, Longines and Tissot, as they provide more than 60% of turnover and higher figures of profit. The Swatch Group has a total of 19 watch brands, some of which are gradually marginalizing the group’s sales and profits. In contrast, Richemont Group relied less on their ‘star brands’, but in fact they also failed to benefit from the rebound that began in the second half of 2017. Of the 13 brands of Richemont Group, only Cartier’s turnover More than 1 billion Swiss francs. Brands like IWC and Panerai have performed well in the past few years, but they and other well-known brands such as Jaeger-LeCoultre and Vacheron Constantin failed to exceed the 1 billion Swiss francs sales threshold in 2017.
Pie chart of market share of watch brands in 2017
So who are the model students and those who need to be strengthened? Morgan Stanley believes that some family-run independent watchmakers include Rolex, Patek Philippe, and Audemars Piguet together to capture a 30% market share. According to Morgan Stanley, these brands have continued to grow through vertical integration and long-term management (such as a zero-tolerance strategy for the gray areas of the market) upstream. As for the room for improvement, the Kering Group: the sales of Athens, Girard Perregaux and JeanRichard in 2017 totaled about 190 million Swiss francs. In other words, the Kering Group’s brand has a market share of less than 1% (this figure (Only half when the Kering Group acquired Athens in 2014). Hermès is also another striving for upstream. Although the brand’s efforts are obvious to all, the sales of watches in 2017 were still only 175 million Swiss francs, a lot of decline from the peak reached in 2012.