ISLAMABAD: Luxury watchmakers are turning to innovative strategies such as Snapchat and Bitcoin to attract the attention of the next generation of buyers, according to a report by management consultants Bain and Company and the Italian luxury watch brands association Altagamma Foundation.
The report notes that Millennials and Generation Z, with their strong interest in luxury goods, are expected to drive sales growth in high-end timepieces, with their spending forecast to increase three times faster compared to other generations by 2030.
At the Watches and Wonders trade fair in Geneva, Swiss watchmakers such as Rolex, Cartier, and Patek Philippe showcased their latest creations, with Rolex CEO Jean-Frederic Dufour highlighting the need to showcase the trendiness of wearing a watch to younger generations who are not used to doing so.
One of the event’s highlights was Snapchat’s application allowing people to try on watches virtually and customize the colors of Hublot watches.
Snapchat’s application on watches
Other luxury brands, such as Hermes, presented collections with designs inspired by silk scarves, and social media influencers were used to sell watches online.
With millennials and Generation Z “saving more, earning more, and investing earlier and at a higher rate than earlier generations”, watchmakers hope that they will become a powerful driver of sales growth for top-end timepieces.
Furthermore, H. Moser CEO Edouard Meylan said a “younger, more digitalized” clientele is emerging in Asia, with over 50% of sales in China going to Gen Z and Millennials.
The report highlights that Millennials and Gen Z are estimated to be on the receiving end of a massive wealth transfer, projected to total more than $80tn in the US alone by 2045 and that the younger generation has more economic power than previous generations.
However, soaring housing costs are stifling their spending in the nearer term, with almost half of US young adults aged 18 to 29 still living with their parents.
