good evening everyone!
"I want a luxury watch! But a smartwatch seems convenient too! Which one is better?!"
I'm sure many people have this problem when considering buying a watch. Luxury watches and smartwatches are at opposite ends of the spectrum in terms of price, design, and functionality, so choosing between them can be an ultimate decision.
Which is better: a luxury watch or a smartwatch ?
I would like to compare the market and actual usability (advantages and disadvantages). If you are having trouble deciding between a luxury watch or a smartwatch, please refer to this article.
Luxury watches and smart watches from the market perspective
Let's start by looking at each market.
[Luxury Watches] Market
First, let's look at a graph showing the results of a survey conducted in 2021 by market research report provider Report Ocean.
※Reference: Press release (https://prtimes.jp/main/html/rd/p/000002284.000067400.html)
The figures for 2017 to 2020 are already known. The figures for 2021 to 2027 are forecast figures. If things go as predicted in this graph, the " CAGR (compound annual growth rate)" of luxury watches in the global market will rise by 4.5% , and by 2027 , It is expected to reach 51,317,300,000 dollars (approximately 6,835 billion yen) .
[Points to note]
・The market size temporarily shrank from 2019 to 2020 due to the impact of the coronavirus. ・The CAGR (compound annual growth rate) is expected to be higher than pre-COVID levels in 2021. ・The CAGR (compound annual growth rate) is expected to increase by 4.5% until 2027.
(*In monetary terms, the market size is expected to grow to approximately 51,317,300,000 dollars (approximately 6,835 billion yen).)
One possible reason for this is that in recent years, luxury watches have been recognized as real assets in countries around the world, similar to art, fine art, gold and bullion, etc., which has led to increased demand and a rise in CAGR (compound annual growth rate).
[Smartwatch] market
While the market for luxury watches is expected to grow in the future, it is said that the market for smartwatches is expected to grow even more.
According to the same survey by Report Ocean , the CAGR (compound annual growth rate) of smartwatches is It is expected to grow by about 6.0% to reach 14,202.1 million dollars (about 1,895 billion yen). Although luxury watches are larger in value, smartwatches have a higher CAGR (compound annual growth rate) and a higher growth rate.
Differences in customer demographics
Comparing the markets, we can see that both are growing at a CAGR (compound annual growth rate). Also, from a marketing perspective, we can see that the target demographics of the two are different.
[Luxury watch] purchasing demographic
By owning an expensive and well-known watch, people hope to gain "status," "self-satisfaction," "social status," "increased motivation," and "asset creation."
[Smartwatch] Purchasers
By owning a watch that uses cutting-edge technology, people want to obtain a convenient item for everyday use at a low price, with features such as "practicality," "convenience," "functionality" and "smartphone compatibility."
Naturally, what people want from a watch will vary depending on their income, work environment, social status, etc. However, because of the differences in purchasing demographics as mentioned above, it cannot be said that the market for smartwatches will grow while the market for luxury watches will shrink.
However, some low-priced luxury watch brands that have the same customer base as smartwatches are likely to struggle in the future. In fact, the Swatch Group, which includes low-priced brands such as Tissot, Hamilton, and Mido, is said to be losing market share to smartwatches, led by the Apple Watch.
merit and demerit
We have compared the market size of luxury watches and smartwatches, as well as the purchasing demographics from a marketing perspective, but let's also take a look at the advantages and disadvantages of actually using them.
The benefits of luxury watches
Main benefits :
・Unique status
- If you perform regular maintenance, it can last a lifetime
・You can pursue your own preferences in terms of design, functionality, materials, etc.
・High resale value
The biggest benefit of a luxury watch is its status. Brands such as Rolex and Omega are known by watch lovers, and even by people who are not familiar with watches. For businessmen, it is something they wear, and it can be used to judge the other person's character and trustworthiness, so wearing a luxury watch not only increases trust, but also serves as a conversation starter.
Another attractive feature is that if you have it overhauled regularly, you can continue to use it forever. Smartwatches are battery-powered, so they are said to have a lifespan of about 4 to 5 years. Even if they are low-priced, if you consider that you will have to replace them every few years, it seems that luxury watches would be the winner for decades of use. Furthermore, luxury watches have excellent resale value, which is a very important point.
We publish our "buyback rate" every month.
If you haven't seen it yet, please take this opportunity to check it out.
Disadvantages of Luxury Watches
<< Main Disadvantages >>
- High purchase costs
・It is necessary to carry out periodic overhauls
・Please handle with care
Naturally, the initial purchase cost is high, so you will need to have a certain amount of financial leeway. After purchase, the watch needs to be overhauled every 5 to 10 years, and the cost varies greatly depending on the brand, condition of the watch, and whether or not replacement parts are required, but it is said to cost around 50,000 to 200,000 yen. Also, no matter how expensive a watch is, it is still a precision instrument. There are watches that are waterproof and highly durable, but they are generally delicate and require careful handling.
Benefits of a Smartwatch
Main benefits :
- Rich in features
· Cheap price
- You can customize the dial
The biggest advantage of a smartwatch is the wide range of functions it offers. By linking it to your smartphone, you can enjoy a wide range of functions, such as email and LINE notifications, health management, and cashless and cardless payment. Depending on the model, you can get all these functions for around 50,000 yen, which makes it very convenient. You can also customize the watch face, so you can change the face depending on your mood or outfit, which is an appeal that luxury watches don't have.
Disadvantages of Smartwatches
<< Main Disadvantages >>
- Short life span
Needs to be charged every day
Sometimes it's hard to use the functions
The biggest disadvantage, as mentioned above, is the short lifespan. Smartwatches are battery-powered, so they deteriorate over time. Furthermore, they need to be charged every day, which many people may find a bit of a hassle. The benefit of having a wide range of functions is that they are meaningless if you cannot use them to their full potential. Many people who have actually purchased a smartwatch say things like, "I can't use the new functions," "There are too many notifications," and "There are too many functions and I don't know which one to use." Before purchasing, you need to gain some knowledge and adapt to the functions that are updated.
summary
What do you think of the luxury watch vs smartwatch comparison ?
By learning about the characteristics of each, you may be able to see which one is truly necessary for you.
To be honest, as you can see from the comparison of advantages and disadvantages, the requirements for each are completely different, so it might be a good idea to have both. As someone who is surrounded by attractive mechanical watches every day, I would of course recommend the luxury watch (lol).
Once again, I hope that by reading this article, you will become at least a little interested in luxury watches!
see you!