On May 16^th, DLG’s Head of Strategy & Intelligence, Florent Bondoux was a guest speaker on CNN’s Marketplace Europe. The show did a special segment at BASELWORLD, talking to Digital Luxury Group, Patek Philippe and Chopard about what’s driving future growth, highlighting key trends from the WorldWatchReport™.

For further information on the WorldWatchReport™ please visit:

http://www.worldwatchreport.com/

A free version of the report featured on CNBC  is available for download at: http://dlgr.com/brazilrank

GENEVA, April 24, 2013 – For the 9^th consecutive year, Digital Luxury Group releases the WorldWatchReport™, the leading market research in the luxury watch industry. After the release of the Haute Horlogerie Preview (18 brands) of the report in January at SIHH, the complete 2013 edition (62 brands, 20 markets) is now available.

Global Consumer interest for luxury watches grew +3.3%, led by BRIC markets (+33.0%)

Global demand growth was fueled by BRIC Markets with the highest year-to-year increases in China (+36.0%), Brazil (+29.4%), Russia (+28.5%) and India (+19.7%). Early signs of demand decline were recorded mostly in historically established and mature markets: the United States (-11.6%), Europe
(-8.3%) and Japan (-13.6%).

“The numbers confirm a shift in demand growth drivers which started several years ago and which shapes the whole industry further towards localization. From product design, brand positioning to in-store service, luxury watch brands need to quickly adapt to client preferences from emerging markets to grow further”, explains Florent Bondoux, Head of Strategy & Intelligence at Digital Luxury Group.

China consolidates its leadership position with 1/4 of global demand

Ahead of the United States for the second year in a row, China’s appetite for high-end timepieces grew by +36.0% in 2012 despite reported retail slowdown. Biggest brands Rolex (#2, +97.8%), Cartier (#4, +71.6%) and Omega (#1, +70.4%) grew the fastest, notably due to higher exposure from inner-China regions where the fastest growth rates were observed.

According to Pablo Mauron, Digital Luxury Group’s General Manager China, “Despite a reported slowdown in the region often attributed to the reluctance towards government gifting, we can’t realistically forecast a significant market decrease in the mid-term as the fast growing middle-class, quick wealth creation from tier 2 and 3 cities as well as increasingly important travel spending are strong drivers that are here to stay.”

Swatch Group overperforms luxury conglomerates*

Strong performances from Omega, Longines and Rado in rapidly growing BRIC markets substantially contributed to Swatch Group performance figures. Conversely, LVMH and Kering (ex.PPR) watch brands analyzed in the report posted average declines of -4.4% and -10.6% respectively. Richemont Group remains close to the global positive trend (+2.1%).

“Haute Horlogerie” and “Watch and Jewelry” categories are growing the fastest

Confirming results highlighted in January at SIHH, Haute Horlogerie brands – notably composed of Patek Philippe (#10, +16.7%), Vacheron Constantin (#19, +31.5%) and Breguet (#24, +8.6%) – were the fastest growing brands (+10.1%), followed by the Watch and Jewelry category growing by +7.7%, thanks to solid performances from Cartier (#3, +11.6%) and Piaget (#18, +12.94%). Exposure to Asia played a crucial role in fueling categories’ growth with 44% and 46% of demand respectively.

Gap between industry leaders Rolex and Omega narrows further

A sheer 2 percentage points in global demand separates the two watch industry powerhouses from each other, versus 8.4 % in 2009. Rolex continues to lead the Global ranking thanks to its domination in mature markets such as the US and Europe as well as the Middle East and India. Omega’s continuing leadership in large, fast developing markets such as China, Russia, and Latin America has helped it gain ground on industry leader Rolex.

Digital Luxury Group’s CEO, David Sadigh explains, “Omega is on its way to create a shadow over Rolex in the long run. Major sport event sponsorships, ubiquitous celebrity endorsements and a competitive product offering are some of the key ingredients for the Swatch Group brand to grow further. This could ultimately end up in reaching Rolex’s unmatched popularity 3 to 5 years from now.”

62 Brands

Haute Horlogerie: A. Lange & Söhne, Audemars Piguet, Blancpain, Bovet, Breguet, De Bethune, Franck Muller, Girard-Perregaux, Glasshütte Original, Greubel Forsey, Jaquet Droz, Jaeger-LeCoultre, Parmigiani, Patek Philippe, Richard Mille, Roger Dubuis, Ulysse Nardin, Vacheron Constantin. Watch and Jewelry: Bulgari, Cartier, Chaumet, Chopard, Harry Winston, Jacob & Co., Piaget, Tiffany & Co., Van Cleef & Arpels. Couture: Chanel, Dior Watches, Hermès, Louis Vuitton, Ralph Lauren. Prestige: Breitling, Corum, Hublot, IWC, Omega, Panerai, Rolex, TAG Heuer, Zenith. High Range: Baume & Mercier, Bell & Ross, Bremont, Carl F. Bucherer, Concord, Ebel, Eberhard, Frédérique Constant, Graham, Longines, Louis Erard, Maurice Lacroix, Montblanc, Perrelet, Rado, Raymond Weil, Romain Jerome, Sinn, TechnoMarine, Tudor, Vulcain

20 markets

Brazil, China, France, Germany, Hong Kong, India, Italy,  Japan, Mexico, Qatar, Russia, Saudi Arabia, Singapore, Spain, Switzerland, Taiwan, Thailand, United Arab Emirates, United Kingdom, United States

* All calculations are based on the 62 brands featured in the report.

**Date range for all data is Jan-Dec. 2012 and Jan-Dec. 2011 for Y/Y evolutions


About the WorldWatchReport™

The WorldWatchReport™ measures and benchmarks over fifty unique indicators to analyze the performance of 62 luxury watch brands across 2o international markets. The report identifies and analyzes hundreds of millions watch-related search queries typed into major global search engines and translates them into the client preferences driving the industry.

The report has been published since 2004 by Digital Luxury Group in partnership with Europa Star and the gracious support of the Fondation de la Haute Horlogerie. For more information about the WorldWatchReport™, please visit http://www.worldwatchreport.com

About Digital Luxury Group

Digital Luxury Group, DLG, SA, is the first international company dedicated exclusively to the design and implementation of digital communication strategies for luxury brands.  For over ten years, DLG has developed a unique expertise that it is currently implementing for its clients in Europe, North America, the Middle East, and Asia.  http://www.digital-luxury.com

For more information:

Laetitia Hirschy, lhirschy@digital-luxury.com

+41 22 702 0760

To download the report visit: www.dlgr.com/brazilrank

The report is part of the World Luxury Index™, an international ranking and analysis of the most sought-after brands within the luxury industry. This study covers 300+ luxury brands within six key segments (fashion, beauty, jewelry, cars, watches, and hospitality) in ten key luxury markets and provides insights on the interest coming from luxury consumers in Brazil. The unbiased information is derived from 20+ million consumer online searches originating from Brazil.

Among the key trends identified and shaping the Brazilian luxury market in 2012

1.      Interest for luxury increased by 24% in 2012, led by Cars

Estimated at USD 12 billion (MCF Consultoria and GfK, 2011) the luxury market in Brazil is marked by a +24% surge in consumer interest for luxury brands and products across all segments. Cars, the largest segment gathering nearly half of total searches, met the greatest growth (+68%) followed by Beauty (+49%) and Watches (+34%). Jewelry (+18%) and Fashion (+9%) along with Hotels (stabilized at -1%) performed below the Brazilian average growth.

“While retail sales forecast are showing single digit growth, 2012 is marked by the pace at which Brazilian consumers massively turned to online channels to stay on top of luxury trends. Effectively harnessing such an online frenzy represents a key differentiating factor and growth accelerator for global luxury brands in Brazil” states Florent Bondoux, Head of Strategy & Intelligence, Digital Luxury Group.

2.      Love for appearance boosts Beauty, growing by 49%

While per-capita spending for beauty products equals the one in the USA (USD 260), Perfumes and Makeup categories are driving the Beauty segment, growing by 49%. MAC Cosmetics leads the Beauty segment with 38% search market share. Besides Makeup and Skin Care sub-categories, MAC has been present in the market since 2002 and now operates 5 stores across Brazil. Within Fragrances, Armani is the most sought-after brand, followed by Chanel and Dior.

 3.      Sportive look is most preferred style for Cars and Watches

Out of the top 50 most-searched car models: 18 are Sports cars – topped by Buggati Veyron and Lamborghini Aventador – and 17 are SUVs, headed by Range Rover Evoque, 2^nd most popular car model as well as the most armoured in 2012. Most popular watch models reveal Brazilians preferences for Men’s, Sports and Chronograph timepieces, a segment dominated by TAG Heuer, Rolex and Omega. Historical relationship notably through Formula 1 and pilot legend Ayrton Senna explains the special relationship TAG Heuer has with Brazilian consumers. Its Carrera model is the 1^st luxury watch model in Brazil.

 4.      Miami and New York are Top travel destinations; Hilton most searched for luxury hotel chain

With import taxes among the highest in the world, it is estimated that 80% of luxury products acquired by Brazilians are purchased abroad. Preferred locations when researching luxury hotels remain the Americas – Miami and New York at the top – followed by Europe with Paris and Lisbon. Hilton is the most searched for Hotel when planning trips to Paris and New York, while Loews is preferred in Miami and Tivoli in Lisbon.

CEO of Digital Luxury Group, David Sadigh explains, “We estimate that nearly 1 million of Brazilian tourists are traveling and shopping in New York every year. They are brand conscious, impulsive and much bigger spenders than the average international tourist visiting the Big Apple. A strong presence in Brazil will be key for luxury and fashion brands willing to take advantage of this international clientele”.

A free version of the report is available for download at: http://dlgr.com/brazilrank

As part of the full-day fashion-focused event at the W Hotel Austin, DLG Founder & CEO, David Sadigh, will be on hand to answer fashion/luxury marketing questions.

Be sure to register here if you wish to attend.

With over 3,000+ RSVPs, the event is sure to be one to remember!

Download it here: http://www.dlgr.com/usfashion/

The full edition of the report, which this year will cover 60+ brands in 20 markets worldwide, will be available in April at the time of Baselworld.

Amongst the key Haute Horlogerie trends identified:

1.      Interest for Haute Horlogerie brands continues to grow (+ 7% year-over-year)

Compared to the previous year, the highest-end category of luxury watches, Haute Horlogerie, experienced a 7% increase in brand interest.  “This marks the third year in a row that the online interest of this highest-end segment of luxury watches has increased, showing the continued strength of haute horlogerie within the overall market,” indicates Florent Bondoux, Head of Strategy & Intelligence.

2.      BRIC + Asian markets represent nearly 50% of Haute Horlogerie global brand interest

Of the 20 markets analyzed in the study, nearly half (47%) of global interest for Haute Horlogerie stems from in-the-spotlight markets Brazil, Russia, India, China, Singapore, Thailand, Hong Kong, and Taiwan.  Mainland China on its own compromises 27% of the global demand or twice as much as the US market, increasing by 31%.

3.      Consumer interest for Haute Horlogerie in mature markets, US and Japan, declining

A downward trend was observed in the weight that mature luxury watch markets the US (down by 10.6%) and Japan (down by 11.7%) represent in the global breakdown.

While relative share of demand has progressively shrank in the past 3 years in most established markets, for the first time since the report’s launch in 2004, an absolute decline in domestic demand in the US and Japan is observed.

“2012 has been a year of stabilization in the U.S.  Affluents have been focused on the Presidential campaign and the tax hikes surrounding the fiscal cliff. Tourist shopping, notably from Latin America, should offset domestic demand slowdowns and represent a major growth driver in the region,” explains David Sadigh, Founder & CEO.

4.      Patek Philippe leading by far the Haute Horlogerie segment

Patek Philippe remains and by far the leading Haute Horlogerie watch brand with 23.6% of brand interest share. Jaeger-LeCoultre takes the second spot with 12.7%, closely followed by Vacheron Constantin at 12.6%, Audemars Piguet at 9.2%% and Breguet at 7.7%.

Along with Richard Mille (see below), Vacheron Constantin and Patek Philippe also record the highest growth rates in brand interest year-over-year, with 26% and 10.2% growth, respectively.

5.      Richard Mille is the fastest growing Haute Horlogerie brand

Founded in 2001, the brand Richard Mille is the fastest growing haute horlogerie brand (+61% over last year), followed by Vacheron Constantin (+26%), and Patek Philippe (+10.2%).  “Assuming Richard Mille manages to keep its momentum and growth rate, the company could easily become one of the top 5 Haute Horlogerie brands by 2020,” predicts Bondoux. “This is a brand with a strong breadth of exclusive products and an equally strong PR-driven marketing approach focused on events and celebrity endorsements.  Richard Mille is a brand to watch.”

6.      Audemars Piguet’s Royal Oak reinforces its leadership as the top watch model among Haute Horlogerie brands globally

The Royal Oak, reinforcing its leading position of last year, continues its reign as the most sought-after Haute Horlogerie watch model, increasing its online interest by 5% over the last year, likely an effect of the increased communications surrounding the icon’s 40^th anniversary. Though the Royal Oak leads globally, local preferences arise for other models in markets such as Japan (Girard-Perregaux’s 1945), China (Vacheron Constantin’s Overseas), and Russia (Blancpain’s Leman).

—-

Haute Horlogerie brands tracked in this preview report: A. Lange & Söhne, Audemars Piguet, Blancpain, Bovet, Breguet, De Bethune, Frank Muller, Girard-Perregaux, Glashütte Original, Greubel Forsey, Jaeger-LeCoultre, Jaquet Droz, Parmigiani, Patek Philippe, Richard Mille, Roger Dubuis, Ulysse Nardin, Vacheron Constantin.  (Other brands exhibiting at the Salon International de la Haute Horlogerie such as Cartier, IWC, Panerai, and Piaget, have not been analyzed in this year’s preview research after a revised brand segmentation, the results of which will be released in April at the time of Baselworld)

Markets analyzed: Brazil, China, France, Germany, Hong Kong, India, Italy, Japan, Mexico, Qatar, Russia, Saudi Arabia, Singapore, Spain, Switzerland, Thailand, Taiwan, United Kingdom, United Arab Emirates, and The United States

About the 2013 WorldWatchReport™

The 2013 WorldWatchReport™ measures and benchmarks over fifty unique indicators to analyze the performance of 60+ luxury watch brands across 20 international markets. The report identifies and analyzes over 1 billion watch-related search queries typed into major global search engines and translates them into the client preferences driving the industry.

It has been published since 2004 by Digital Luxury Group in partnership with Europa Star and the gracious support of the Fondation de la Haute Horlogerie. For more information about the WorldWatchReport™, please visit http://www.worldwatchreport.com

CHINA

World Luxury Index™ China (April 2012)

In partnership with Luxury Society, DLG unveiled the first ever ranking of the top 50 most-searched for luxury brands in China.  This ranking was the first installment of the World Luxury Index, and uncovered that automobile brands tended to be most highly ranked. Read more… | See the Report 

World Luxury Index™ China Hotels (July 2012)

In a first-time partnership with Luxury Concierge China, a travel service and consultancy based in Shanghai and Luxury Society, DLG unveiled a ranking of the top 15 most-searched for luxury hotel brands by Chinese travelers.  A key finding?  It’s a fast growing market, but no clear leaders have yet to be defined.  Read more… | Download the Report

World Luxury Index™ China Watches (December 2012)

Released in association with Europa Star and Luxury Society, is DLG’s look at the luxury watch market in China and how issues such as government gifting and an increase in international travel are affecting the market. Read more… | Download the report 

USA

The Top 50 Most-Searched Luxury Brands in the US (February 2012)

In partnership with Luxury Society, DLG deciphered the top 50 most-searched for luxury brands in the United States in 2011.  The ranking is based on more than 470 million intentions expressed by American consumers using Google and Bing to search for luxury products and services related to 500 luxury brands from 6 different segments (watches, jewelry, fashion, beauty, automotive, hospitality).  Read More…

World Luxury Index™ American Fashion (October 2012)

Released in October of this year, in partnership with Luxury Society and Fashion’s Collective, was our first fashion-industry analysis, taking a look at how American luxury fashion brands performed around the world.  A key finding?  While many of the brands due well abroad overall, they are lagging in the BRIC markets as compared to their European counterparts. Read More… | Download the Report

RUSSIA

World Luxury Index™ Russia (May 2012)

In a first time partnership with Yandex, the leading search engine in Russia and Luxury Society, Digital Luxury Group unveiled for the first time, a ranking of the top 50 most-searched for luxury brands in Russia.  More than any other category, luxury car brands ruled the list.  Read More… | See the Report

LUXURY WATCHES

WorldWatchReport™ 2012 Haute Horlogerie Preview (January 2012)

Every year at the occasion of the Salon International de la Haute Horlogerie (SIHH), Digital Luxury Group unveils the results for the brands in the Haute Horlogerie category of the WorldWatchReport™, the leading market research in the luxury watch industry. Read more…

WorldWatchReport™ 2012 (March 2012)

The 2012 WorldWatchReport™ highlighted the trends impacting the luxury watch industry.  Reporting on key findings including; China surpassing the USA as the country with the highest demand for luxury watches, the lead held by Rolex quickly being challenged by Omega, and consumers showing less interest for counterfeits. Read more… | Order the Report

World Luxury Index™ China Watches (December 2012)

Released in association with Europa Star and Luxury Society, is DLG’s look at the luxury watch market in China and how issues such as government gifting and an increase in international travel are affecting the market.
Read more… | Download the report 

LUXURY HANDBAGS

World Luxury Index™ Handbags (June 2012)

DLG research analysts, with the support of the Luxury Society team, uncovered a number of interesting findings regarding the global luxury handbag industry.  One interesting surprise?  When measuring the demand against each market’s internet population, the UK shows the highest affinity for luxury handbags with 422 searches per 1000 internet users. Surpassing the US, France, Italy, Japan, and others. Read More… | Download the Report | See the Infographic

WorldHandbagReport™ 2012 (November 2012)

The 2012 WorldHandbagReport™, a follow up to the previously released handbag analysis, highlights the trends impacting the luxury handbag industry and is a must-have for luxury industry professionals operating in this field.  The report analyzes over 120 luxury handbag brands in ten of the most important luxury markets across the globe. About the report… 

LUXURY FASHION

World Luxury Index™ American Fashion (October 2012)

Released in October of this year, in partnership with Luxury Society and Fashion’s Collective, was our first fashion-industry analysis, taking a look at how American luxury fashion brands performed around the world.  A key finding?  While many of the brands due well abroad overall, they are lagging in the BRIC markets as compared to their European counterparts. Read More… | Download the Report

LUXURY HOTELS

World Luxury Index™ China Hotels (July 2012)

In a first-time partnership with Luxury Concierge China, a travel service and consultancy based in Shanghai and Luxury Society, DLG unveiled a ranking of the top 15 most-searched for luxury hotel brands by Chinese travelers.  A key finding?  It’s a fast growing market, but no clear leaders have yet to be defined.  Read more… | Download the Report

CASE STUDIES

Digital Luxury Success Story: TAG Heuer

DLG has been a proud partner to TAG Heuer, and many more of the world’s most respected luxury brands, on a range of digital initiatives.  In early 2012, TAG Heuer implemented DLG’s Search Engine Optimization (SEO) recommendations that resulted in a significant position improvement on both branded and generic keywords.
Download the report 

Any questions?  Don’t hesitate to Contact Us.

>> Download the report.

DLG research analysts, with the support of the Europa Star and Luxury Society teams, uncovered a number of interesting findings:

1.      Chinese interest for luxury watches is growing

There is no doubt that the Chinese are still passionate about watches. The analysis of 65 international watch brands shows that every category of luxury watches from “prestige” to “haute horlogerie” has seen an increase in interest comparing the first half of 2012 to the same time period in 2011, with a near 40% increase in aggregate searches.  This shows that the attention expressed for luxury watches in China remains strong despite the reported macroeconomic slowdown and the economic uncertainty linked to the political changes.

“The interest continues to grow, but there are indicators that the purchase cycle has slowed,” indicates Florent Bondoux, Head of Strategy and Intelligence at DLG.

2.      The big players get bigger

In an immature market where awareness of smaller brands is yet to be developed, the lucky winners enjoy a more prevailing dominance.  Out of 65 brands analyzed, the top ten most-searched luxury watch brands (Omega, Rolex, Longines, Cartier, Rado, Patek Philippe, Vacheron Constantin, IWC, Piaget, Chanel) represent nearly 80% of the search market.  Compared to a mature market like France, where the top ten represent 64%, this is quite a difference.

“The three brands that have increased the most in search volume year-over-year (Rolex, Omega, and Cartier) are also the brands that represent the biggest slice of search market share,” adds Bondoux.

3.      Chinese consumers are becoming more educated and sophisticated

When looking at the way consumers (or would-be consumers) search for luxury watches, it is noted that for the first time this year style-related searches (such as “men’s watch” or “classic style”) have surpassed price-related searches.  This is the cause of several factors, from a more educated consumer who is now deciphering between a brand’s different models, to gift-purchase related searches which tend to skew more generic.

“This more sophisticated and educated consumer marks an opportunity for brands to better localize to the needs and desires of the Chinese audience,” concludes Shanghai-based Pablo Mauron, DLG China’s General Manager.

A free version of the report is available for download.

For more in-depth analysis on the luxury watch market in China, as well as 19 other international markets, the 2013 WorldWatchReport™ is available for pre-order.

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About the World Luxury Index™

This report is part of the World Luxury Index™, an international ranking and analysis of the most searched-for brands within the luxury industry.  Covering over 400 brands within six key segments (fashion, beauty, jewelry, cars, watches, and hospitality) in ten international luxury markets, the World Luxury Index provides insights on the unbiased search inputs coming from global luxury consumers in the world’s top search engines (Google, Bing, Baidu, Yandex).  The result is a one-of-a-kind benchmark of the brands capturing the attention of luxury-minded consumers around the world.

In early 2012, TAG Heuer implemented DLG’s search engine optimization recommendations that resulted in a significant position improvement on both branded (“TAG Heuer watches”) and non-branded (“luxury watches”) keywords.

To learn about the actions and results that have led to TAG Heuer’s SEO successes, download our case study.

Download the TAG Heuer SEO Case Study