Dr. Ito's In-Depth Analysis of Mechanical Watches! Vol. 48 - The Importance of Japan in the Swiss Watch Market

Good evening, everyone!

This column discusses mechanical watches from an engineer's perspective. For our 48th installment, we will be talking about

"The 'importance' of Japan in the Swiss watch market."

We'll delve into this topic.

When discussing luxury Swiss watches, there's one country that simply cannot be overlooked. Some might find this surprising, but that country is "Japan."

Many might think, "Aren't sales in the US and China much larger now?" However, from within the watch industry, Japan's presence has not diminished; on the contrary, it's becoming even stronger.

So, this time, I'll explain clearly, from a watch enthusiast's perspective, "why Japan is so important in the luxury watch market."

Japan is "one of the largest luxury watch consumer countries in the world."

In terms of population ratio, Japan is one of the top Swiss watch consumer countries in the world.

・Small land area
・Smaller population than China and the US
・Still consistently one of the top export destinations

This is exceptional.

The reason is simple: Japanese people are a market that "keeps buying watches." It's not a temporary boom; there's been a stable demand for decades.

Japanese people are "picky about quality."

This is actually the biggest reason why Swiss brands value Japan.

・Case finishing
・Dial printing
・Lume unevenness
・Accuracy/individual differences

Japanese users are said to examine watches in the greatest detail worldwide.

Moreover,

・They don't just complain
・They don't haggle

Instead, they "properly pay for good quality," and this attitude is extremely appreciated by the Swiss.

The secondary market is extremely large.

When discussing the Japanese watch market, the presence of secondary retailers is indispensable.

If you walk through Ginza or Nakano, you'll see:

・Models not available at authorized dealers are in stock
・Rare models from around the world gather here
・Prices are always visible

This is a sight rarely seen overseas.

Japan's secondary market, along with Hong Kong, is considered

"a showcase reflecting the global watch market."

It's said that Swiss brands themselves are highly conscious of secondary market prices in Japan.

The "accuracy" of the vintage market is high.

Japan can also be considered special in the vintage market.

・Good preservation
・Detailed parts management
・Accurate descriptions
・High awareness of authenticity

It's a well-known fact that overseas customers "trust Japanese pieces." At our shop, Commit Ginza, we're seeing an increasing number of international customers seeking high-quality vintage watches.

As a result, a virtuous cycle has been created where excellent pieces from around the world gather in Japan, further nurturing the market.

Reasons for the abundance of Japan-exclusive models

Have you ever felt that there are an unusual number of "Japan Limited" watches?

There's a clear reason for this.

・Sales capability that can be completed solely within Japan
・Understanding of colors, sizes, and usage
・Low tolerance for complaints (= high demand for perfection)

From the brand's perspective, Japan can be said to be the most "demanding market for testing."

If a product is well-received here, it will be successful worldwide. That's why many brands use Japan as a testing ground.

Japan from Switzerland's perspective = Ideal Customer

From Switzerland's perspective, Japan is:

・Demanding in detail
・But few returns
・Regularly sends items for repair
・Uses watches for a long time
・Buys second and third watches

In other words, they are perhaps the most demanding, yet most ideal customers.

While the Chinese market is indeed massive, trends tend to shift quickly, and there's a strong tendency towards speculation.

On the other hand, Japan represents:

・Stability
・Continuity
・Culture

These aspects are likely why they are trusted and relied upon.

Summary

What did you think?

Japan's specialty isn't just about "sales." Its discerning eye for watches, the depth of its market, its repair culture, its secondary market, its understanding of vintage—everything is in place. That's why Japan is recognized in the Swiss watch market as a "complete watch culture."

As the Japanese market continues to expand, it may not be long before it becomes the country with more "good watches" than any other in the world.

I hope this article was informative and sparked even a little interest in luxury wristwatches! Please feel free to visit us or contact us with any questions; we'll be happy to answer them thoroughly.

Look forward to the next time! See you then!