Luxury watch industry revenue growth

Luxury Watch Industry has increased by 6-7% annually, primarily due to Population Growth and increased availability of Cash Monies in emerging markets. Luxury Watch Industry's sales in 2005 totaled approximately $50 Billion dollars. Luxury Watch Industry's current growth rate is projected to exceed the average annual growth rate of the overall watch industry for the coming years.

It is expected that Luxury Watch industry sales will exceed luxury car sales within five years. The growth in this industry is primarily fueled by the increased availability of cash monies in emerging markets, population growth and improved distribution technologies. Luxury watch industry revenue has grown consistently with general inflation in the face of currency exchange rate fluctuations. Because of this industry's global distribution, currency fluctuations have a minimal effect on industry sales.

The industry's revenue growth is heavily fueled by the growth in sales of mechanical watches and new product introductions, greater availability of Cash Monies in emerging markets, and better distribution technologies. The industry's revenue growth will continue in the coming years due to expected population growth and improved distribution technologies.

The Luxury Watch Industry Statistics has good prospects in the coming years due to continued growth in sales of mechanical watches, continued improvement in distribution technology, and expected improvements in mechanical watch technology. The industry is forecasted to increase in revenue by 9% and sales by 6% during 2006 and 2007. The industry's revenue growth over the next couple of years will outpace the industry average growth rate of 5%. Despite the industry growth, industry average prices are forecasted to decrease by 0.2% over the next couple of years due to reduced distribution costs, but this is offset by industry growth.

The price of luxury mechanical watches will decline by 0.3% over the next couple of years due to reduced distribution costs. The average price of luxury mechanical watches over the next couple of years will fall to $1318 during 2007 from $1366 during 2006. The average price of luxury mechanical watches is forecasted to fall to $5 per month during 2007 from $5.15 during 2006.

As a result of the improvement in industry sales and price performance over the next couple of years, the industry is forecasted to report an average profit margin of 29% during 2007, down from the current average of 32% during the recession.

Looking forward, the industry's revenue growth will remain stable during 2007 at 6%. The industry's profit margin is forecasted to reach 32% during 2007, which is still above the industry average margin of 29%. The industry will see continued improvement in its distribution and distribution technology and distribution revenue.

Despite the industry's revenue growth and forecasted profit margin improvement, the industry's average watch prices will remain higher during the next couple of years at $172 during 2007, which is still above the industry average of $161 during 2006. As a result, the industry's average watch price will fall below the industry average price during 2007 to fall at $122. The industry will benefit from the falling average watch price and forecasted improvement in distribution and distribution technology and distribution margin performance. And during 2007, the industry will see continued improvement in its distribution performance.

The main driver for the industry's improved distribution performance during 2007 will be continued improvement in distribution technology and distribution margin performance. The industry's improved distribution performance and the increased penetration of the company's electronic products will drive continued growth in the industry's revenue, margins and profit. But the industry's growth in revenue, margins and profit will be largely due to the continued price increases during 2007 of luxury mechanical watches. The industry's profit margin, which stands at 3.6% now, will rise to 4% during 2007 to reach a record high during 2007. But during 2007, the industry will see continued price increases for watch sales.


For the next several years, the industry will continue to benefit from the continuing price increases of luxury mechanical watches, the improved performance of the distribution and distribution technology and the improved performance of distribution, margins and profit during sales. Also, the increasing popularity of the industry's electronic products like wristwatches, timepieces, chronographs, date wheels, alarm clocks, calculator clocks and digital watches will also continue to benefit the industry and increase profit margins.

The industry will continue to benefit from both the technological progress in the industry and also the improvement in the management during 2007 and beyond. Although the industry's overall performance will be mostly driven by the price increases during 2007 of luxury mechanical watches, improvements in distribution performance and improving performance during sales will also benefit the industry during 2007 and beyond.

Back to blog