Luxury Market Pulse
The global luxury market confirmed its low single-digit growth, however the hard luxury sector recorded another negative month.
Holiday sales were mixed, as entry-price (< $1,000) watches & jewelry performed better than previous months, brands benefitting from this trend were value-for-money companies such as Movado, Fossil, Dinh Van or Signet Jewelers.
High-End products (> $3,000) did slightly better in Europe and absolute luxury items (> $10,000) performed better in Asia, helped by better domestic consumption in China, which partially offset lower tourism flow to Europe during the period. Consumers gave momentum to niche brands like Richard Mille and historical market leaders like Cartier, Patek Philippe and Rolex.
2016 was a difficult year for the industry but the holiday season confirmed the recovery for jewelry sales but watchmakers continued to struggle due to a lacklustre environment in Asia, particularly in Hong-Kong. Watch distributors fear price war and currency volatility but remain cautiously optimistic for 2017 after recent signs of stabilisation, easier comp. basis.
Please check the latest Watches and Jewelry Market Insight directly from Franck Muller Geneva: Watch & Jewelry Market Insight