Glut: Forecasts for 2019 are Sour

 Glut: Forecasts for 2019 are Sour

Credit Suisse released a bombshell report that effectively forecasts another downturn in the watch industry for 2019. Analysts have been unified in their message that the situation may continue to decay.

The progressive slowdown of the Asia-Pacific markets, including China, has left many brands struggling to find new clients and stay afloat in the recent years. China, including the luxury Mecca Hong Kong, is a staple point-of-sale for much of the industry. China may still be the Wild West of luxury sales, but the consumer in China has become scrutinous as wallets tighten.

You may be asking, “Of course, profits may shrink, but what does this mean for the product side of the industry?” What will likely occur is an exodus of mediocre brands/products, and consequences for the antiquated marketing that is the hallmark of the luxury industry as a whole.

Additionally, positioning in this developing market will be crucial. The consumer is becoming more discerning, especially regarding value. Overpriced and low-quality watches will be drawn out of the ecosystem due to poor sales. Also, brands that harbor glutinous sales environments and insincere marketing will be weeded out by sophisticated clients.

The watch industry is comparable to the man inside a house engulfed with flames, lazily gathering belongings until he himself catches fire, leading him to sprint outside or fly out the window! The truth is, the watch industry has to get smart and be determined to provide down-to-earth content and instate a sincere sales environment.

Colin CarpenterComment