Every year at the occasion of BaselWorld, Digital Luxury Group unveils the results of the WorldWatchReport™, the leading market research in the luxury watch industry published in partnership with Europa Star, and the gracious support of the Fondation de la Haute Horlogerie. The full edition of the report, which this year will cover 60+ brands in 20 markets worldwide, will be available in April 2013 at the time of Baselworld.

1. The Leading Market Research in the Luxury Watch Industry. Since 2004
The Leading Market Research in the Luxury Watch Industry!
Since 2004!
!
2013!
BASELWORLD KEY FINDINGS
APRIL 2013

2. The Leading Market Research in the Luxury Watch Industry. Since 2004
A MARKET STUDY LIKE NO OTHER .
§ 9th Edition
§ 62 Luxury Watch Brands
§ 20 Markets, including BRIC
§ 1’500 Models and Collections
§ 250 Brand Ambassadors
§ Based on DLG’s proprietary consumer interest
tracking technology DemandTracker™
§ Published in partnership with Europa Star and
the gracious support of the Fondation de la
For more information on
Haute Horlogerie methodology:
www.worldwatchreport.com
© Digital Luxury Group, DLG SA, 2013
2

3. The Leading Market Research in the Luxury Watch Industry. Since 2004
TRACKING 62 OF THE MOST RENOWNED LUXURY WATCH BRANDS .
© Digital Luxury Group, DLG SA, 2013
3

4. The Leading Market Research in the Luxury Watch Industry. Since 2004
IN THE TOP 20 MARKETS ACROSS THE GLOBE .
© Digital Luxury Group, DLG SA, 2013
4

5. The Leading Market Research in the Luxury Watch Industry. Since 2004
KEY TRENDS 2013 (1/1) .
§ Global consumer interest for luxury watches grew +3.3%
§ China consolidates its leadership position with 1/4 of all global
searches, growing by +36.0%
§ BRIC markets show greatest year-to-year evolution (+33.0%)
§ Swatch Group (+9.8%) overperforms luxury conglomerates
§ “Haute Horlogerie” (+10.1%) and “Watch and Jewelry” (+7.7%)
categories growing the fastest
§ Gap between industry leaders Rolex and Omega narrows further
© Digital Luxury Group, DLG SA, 2013
5

6. The Leading Market Research in the Luxury Watch Industry. Since 2004
KEY TRENDS 2013 (1/2) .
§ Chronographs and Tourbillons are the two most popular product
segments
§ Iconic collections from Audemars Piguet, Cartier, Chanel, Omega and
Rado shine in models ranking
§ Sportsmen make the biggest gains in the 2012 watch brand
ambassador rankings
§ Facebook increasingly influential but engagement stagnates
§ Watch forums most engaging platform among collectors and
aficionados
- 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
© Digital Luxury Group, DLG SA, 2013
6

7. The Leading Market Research in the Luxury Watch Industry. Since 2004
GLOBAL CONSUMER INTEREST FOR LUXURY WATCHES GREW+3.3% .
© Digital Luxury Group, DLG SA, 2013

8. The Leading Market Research in the Luxury Watch Industry. Since 2004
GLOBAL CONSUMER INTEREST FOR LUXURY WATCHES GREW+3.3% .
§ China consolidates its leadership position with 1/4 of All Global Searches
For the second year in a row, China consolidates its leadership position ahead of the
USA. One out of four luxury watch searches originates from China.
§ BRIC Markets Show Greatest Year to Year Evolution +33.0%
Global demand growth was fueled by BRIC Markets with the highest year-to-year
increases in China (+36%), Brazil (+29.4%), Russia (+28.5%) and India (+19.7%).
§ Early Signs of Demand Decline in Historical Mature Markets
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%).
© Digital Luxury Group, DLG SA, 2013
8

9. The Leading Market Research in the Luxury Watch Industry. Since 2004
GLOBAL CONSUMER INTEREST FOR LUXURY WATCHES GREW+3.3% .
“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”
- Florent Bondoux,
Head of Strategy & Intelligence, Digital Luxury Group
© Digital Luxury Group, DLG SA, 2013
9

10. The Leading Market Research in the Luxury Watch Industry. Since 2004
CHINA CONSOLIDATES ITS LEADERSHIP POSITION WITH ¼ OF GLOBAL DEMAND .
Market growth Top 3 Brands Top 3 Models
+36%
De Ville Constellation Ballon Bleu
Omega Omega Cartier
§ +36.0% growth led by Prestige category brands (+63%).
§ 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.
§ Rolex overtakes Longines, landing in 2nd place.
§ Western provinces showed the fastest growth rate in searches for luxury watches with +8.4%.
© Digital Luxury Group, DLG SA, 2013
10

11. The Leading Market Research in the Luxury Watch Industry. Since 2004
CHINA CONSOLIDATES ITS LEADERSHIP POSITION WITH ¼ OF GLOBAL DEMAND .
“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.”
- Pablo Mauron,
General Manager, China, Digital Luxury Group
© Digital Luxury Group, DLG SA, 2013
11

12. The Leading Market Research in the Luxury Watch Industry. Since 2004
SWATCH GROUP OVERPERFORMS LUXURY CONGLOMERATES .
Evolution of Luxury Conglomerates vs. Independent Brands
Y/Y 2011-2012
§ Strong performances from Omega, Longines and Rado in rapidly growing BRIC markets
substantially contributed to Swatch Group performance figures.
§ LVMH and 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%).
© Digital Luxury Group, DLG SA, 2013
12

13. The Leading Market Research in the Luxury Watch Industry. Since 2004
HAUTE HORLOGERIE & WATCH AND JEWELRY CATEGORIES ARE GROWING THE FASTEST .
Evolution of Category Search Breakdown
Y/Y 2011-2012
.
§ The Haute Horlogerie category grew the fastest (+10.1%) thanks to brands such as Patek
Philippe (#10, +16.7%), Vacheron Constantin (#19, +31.5%) and Breguet (#24, +8.6%) – The
Watch and Jewelry was the second best performing 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.
© Digital Luxury Group, DLG SA, 2013
13

14. The Leading Market Research in the Luxury Watch Industry. Since 2004
TOP 15 MOST SEARCHED LUXURY WATCH BRANDS GLOBALLY .
.
© Digital Luxury Group, DLG SA, 2013
14

15. The Leading Market Research in the Luxury Watch Industry. Since 2004
TOP 10 FASTEST & SLOWEST GROWING LUXURY WATCH BRANDS .
2012 vs. 2011
Richard Mille 60.98%
Vacheron Constantin 31.58%
A. Lange & Söhne 21.48%
Omega 18.76%
Patek Philippe 16.71%
Blancpain
.
14.37%
Piaget 12.94%
Cartier 11.61%
Hublot 11.03%
Breguet 8.63%
Global 3.27%
-10.63% Girard-Perregaux
-11.07% Maurice Lacroix
-11.22% Bulgari
-12.02% Breitling
-15.29% Zenith
-15.49% Panerai
-16.96% Tudor
-18.26% Ebel
-20.56% Louis Vuitton
-28.42% Baume & Mercier
© Digital Luxury Group, DLG SA, 2013
15

16. The Leading Market Research in the Luxury Watch Industry. Since 2004
GAP BETWEEN OMEGA AND ROLEX NARROWS FURTHER .
§ 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.
Historical search market share evolution at constant
perimeter (25 brands, 10 markets)
© Digital Luxury Group, DLG SA, 2013
16

17. The Leading Market Research in the Luxury Watch Industry. Since 2004
GAP BETWEEN ROLEX & OMEGA NARROWS FURTHER .
“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.”
- David Sadigh,
Founder & CEO, Digital Luxury Group
© Digital Luxury Group, DLG SA, 2013
17

18. The Leading Market Research in the Luxury Watch Industry. Since 2004
CHRONOGRAPHS AND TOURBILLONS ARE MOST SOUGHT-OUT PRODUCT SEGMENTS .
Top 2 Chronograph Brands Top 2 Tourbillons Brands
§ Brands shine in different product segments and geographical zones.
§ TAG Heuer is most sought-after for chronographs followed by IWC, remarkably rising
two spots in 2nd place, ahead of Omega.
§ Patek Philippe remains unrivalled for Tourbillons -related searches but was approached
by Hublot (#2; up 3 spots) and rising star Richard Mille (#3, up 13 spots), which saw the
strongest increase in brand interest in 2012.
© Digital Luxury Group, DLG SA, 2013
18

19. The Leading Market Research in the Luxury Watch Industry. Since 2004
CONSUMER INTEREST IN ICONIC MODELS CONFIRMED .
Haute Horlogerie #1 Watch and Jewelry #1 Couture #1
22nd Global 8th Global 13th Global
Prestige #1 High Range #1
1st Global 25th Global
Royal Oak Tank J12
Audemars Piguet Cartier Chanel
Seamaster Jubilé
Omega Rado
© Digital Luxury Group, DLG SA, 2013
19

20. The Leading Market Research in the Luxury Watch Industry. Since 2004
CINEMA/TV & SPORTS LEAD AMBASSADORS’ RANKINGS .
§ Sportsmen make the biggest gains in ambassador rankings
Credit: Michael Sohn
REUTERS/Stefano Rellandini
As a result of the “Olympic Games” effect, sportsmen Michael Phelps (#5 with
Omega, up 31 spots), Usain Bolt (#6 with Hublot, up 25 spots) and LeBron James
(26th for Audemars Piguet, up 32 spots) are among the highest gains.
§ Cinema/TV remains ambassadors’ most important category
Cinema/TV remains the most popular activity as world famous Aishwarya Rai
(#2 with Longines, up 3 spots), John Travolta (8th with Breitling, up 7 spots)
or Jet Li (9th with Hublot, up 4 spots) continue generating higher consumer
interest with 54.8% of total brand ambassador searches.
© Digital Luxury Group, DLG SA, 2013
20

21. The Leading Market Research in the Luxury Watch Industry. Since 2004
FACEBOOK INCREASINGLY INFLUENTIAL BUT ENGAGEMENT STAGNATES .
§ Brands regrouped nearly 50 million fans on Facebook, growing by +135%.
§ TAG Heuer leads watch-only brand ranking with 1M+ Fans.
§ Brands stagnate in average interactions as engagement rate stabilizes (0.78% to 0.82%).
© Digital Luxury Group, DLG SA, 2013
21

22. The Leading Market Research in the Luxury Watch Industry. Since 2004
WATCH FORUMS MOST ENGAGING PLATFORM AMONG COLLECTORS & AFICIONADOS .
Share of Posts Views by Forums Top 3 Brands on Watch Forums
2012
§ Among top 3 analyzed watch forums, Chinese platform iWatch365 captures the lion with 49% of
the 95 million total forum posts views, closely followed by pioneer TimeZone (45%) and
PuristSPro (6%).
§ All 3 forums considered, Patek Philippe, Jaeger-LeCoultre and Zenith are the most popular.
© Digital Luxury Group, DLG SA, 2013
22

23. The Leading Market Research in the Luxury Watch Industry. Since 2004
WHO ARE WE ?
About Digital Luxury Group
Digital Luxury Group (DLG) is the first international company to provide luxury industry market
intelligence and use this strategic viewpoint to create and implement digital marketing and
communication strategies for luxury brands. With headquarters in Geneva, the company has offices in
New York and Shanghai. Since 2004, DLG has been publishing the WorldWatchReport™ a baseline
market study for the watchmaking industry in partnership with Europa Star and with the precious
support of the Fondation de la Haute Horlogerie.
Contact:
Florent BONDOUX
Head of Strategy & Intelligence
fbondoux@digital-luxury.com
Laetitia HIRSCHY
WorldWatchReport™ Project Manager
lhirschy@digital-luxury.com
Digital Luxury Group, DLG SA
7 Avenue Krieg
CH-1208 Geneva
Switzerland
Visit our website to get detailed information:
www.worldwatchreport.com or www.digital-luxury.com
© Digital Luxury Group, DLG SA, 2013
23