mediakitwwrsihh2012-120119013747-phpapp02

7/27/2019 mediakitwwrsihh2012-120119013747-phpapp02

1/38

The Leading Market Research in the Luxury Watch Industry. Since 2004

The Leading Market Research in the Luxury Watch Industry!Since 2004!!2012!

HAUTEHORLOGERIEPREVIEW


2/38


A MARKET STUDY LIKE NO OTHER.Since 2004, the World Watch Report hasprovided the luxury watch industry with anexclusive analysis of the leading brands, modelsand client preferences. The World Watch Report

is based on more than 1 billion unaided clientintentions entered into search engines.

This search data is collected using Digital Luxury

Groups proprietary technology, and is translatedinto client intentions related to brands, models,distribution, replicas, price, accessories etc.*

*A detailed explanation of the methodology is available at the end of the document

Digital Luxury Group, DLG SA, 2012 2


3/38



TRACKING 40 OF THE MOST RENOWNED LUXURY WATCH BRANDS.


4/38


IN THE TOP 20 MARKETS ACROSS THE GLOBE.


United States

Mexico

Brazil

Germany

United Kingdom

France

Spain

Switzerland

Italy

Saudi Arabia

United Arab Emirates

India

Thailand Singapore

Hong Kong

Taiwan

Japan

Russia

Qatar

China


5/38


15 Haute Horlogerie brands covered(out of the total 40 brands available in the full report)

Only key highlights and partial metrics provided Full report on 40 brands to be released in March at Baselworld


RESEARCH SCOPE OF HAUTE HORLOGERIE MEDIA KIT.

Free document made for the solely purpose of the 2012 Edition of the SalonInternational de la Haute Horlogerie


6/38


China surpassed the USA as the leading market ~ for thefirst time since the study launched in 2004, China recorded thehighest demand for high-end watch brands with 25% market share

IWC, Patek Philippe, Zenith are the category leaders ~The top 3 worldwide Haute Horlogerie brands remain unchanged

from the 2010 market figures gathering more than 50% of theworldwide market share

Jaeger-LeCoultres Tourbillon ~ The Le Sentier-based brandis currently the most in demand for highly technical keywordsrelated to the search of tourbillon timepieces


THE HAUTE HORLOGERIE CATEGORY IN 2011 | KEY HIGHLIGHTS.See report on

P.9

See report onP.15

See report onP.19


7/38


Royal Oak vs. Reverso ~Audemars Piguets Royal Oakovertook Jaeger-LeCoultres signature Reverso after 3 consecutiveyears in the first position

Singapores Collectors Hub ~ Singapore showed evidence of avery strong watch connoisseur market with 17.5% of demanddirectly associated to specific models

Impressive growth in mobile internet ~The global marketexperienced a shift in media consumption with 17% of Haute

Horlogerie searches performed through a web-enabled mobiledevice

Social media booming ~ IWC and Jaeger-LeCoultre proved tobe the trend setters in both Western and Chinese social media


THE HAUTE HORLOGERIE CATEGORY IN 2011 | KEY HIGHLIGHTS. See report onP.20

See report onP.29

See report onP.31

See report onP.23


8/38


GEOGRAPHIC SEARCH ORIGIN.


United States 21.23%

Mexico 0.65%

Brazil 1.04%

Germany7.38%

United Kingdom 8.16%

France 6.84%

Spain 2.37%

Switzerland 2.74%

Italy6.11%

Saudi Arabia

0.12%

United Arab Emirates 0.35%

India 1.13%

Thailand 1.51% Singapore 1.56%

Hong Kong 1.19%

Taiwan 1.15%

China 24.89%

Japan 6.14%

Russia 5.35%

Qatar 0.08%

The Relative Number of Haute Horlogerie Searches by Market

January to November 2011


9/38


GEOGRAPHIC SEARCH ORIGIN.


China surpassed USA as the leading market~ for thefirst time since the study launched in 2004, China overtook the

USA as the country exhibiting the highest demand for high-endwatches, with a 25% market share

Strong foothold in the West ~ Demand from Europe andUSA remained strong, gathering 55% of the total searches. Of

note were early signs of decline from France and the US,experiencing drops of 1.4 and 5percentage points respectively

(at a constant perimeter)

South-East Asia leads midsize markets ~ Singapore andThailand (3%) are positioned as strategic second-tier growth

drivers, ahead of Hong Kong and Taiwan (2.3%), Brazil andMexico (1.7%) and the Middle East (0.5%)


10/38


DEMAND FOR HAUTE HORLOGERIE IN CHINA | REGIONAL SEARCHES.


Share of Searches by Administrative Division

Baidu Data Only

Rank Administrative DivisionShare ofsearches

1 Beijing 6.7%

2 Shanghai 6.2%

3 Zhejiang 5.9%

4 Guangdong 5.5%

5 Jiangsu Province 5.2%

6 Liaoning Province 4.7%

7 Shandong 4.5%

8 Henan 3.8%9 Hebei 3.7%

10 Tianjin 3.7%

11 Fujian Province 3.6%

12 Sichuan Province 3.6%

13 Heilongjiang 3.5%

14 Hubei 3.5%

15 Anhui 3.2%

16 Shaanxi 3.0%

17 Shanxi 3.0%

18 Jilin 3.0%

19 Hunan 2.9%

20 Chongqing

2.6%21 Guangxi 2.5%

22 Jiangxi Province 2.3%

23 Inner Mongolia 2.2%

24 Yunnan 2.2%

25 Guizhou 1.7%

26 Xinjiang 1.6%

27 Hong Kong 1.6%

28 Hainan 1.6%

29 Gansu Province 1.3%

30 Ningxia 0.8%

31 Qinghai 0.4%

32 Tibet 0.2%



11/38



A multi-faceted market ~ Composed of three major regionsand 56 ethnics groups, Chinas diversity requires an in-depth

understanding of local culture and clientele preferences

Dominance from 1st and 2nd tier coastal cities ~At theheart of most high-end shopping streets, coastal cities such asBeijing, Shanghai, Hangzhou and Dalian, gathered 56.1% of the

nations demand for high-end timepieces, highlighting theconcentration of consumers in these areas

Brand preferences vary across regions ~ Deeply rootedheritage brands such as Patek Philippe and VacheronConstantin resonate favorably with traditional clients from theBeijing region, while IWC attract a relatively younger, urban

and trendy audience from Shanghai, Anhui and even Hainan

DEMAND FOR HAUTE HORLOGERIE IN CHINA | REGIONAL SEARCHES.


12/38



Number of Haute Horlogerie searches per 1,000 Internet usersHAUTE HORLOGERIE AFFINITY INDEX.



13/38



HAUTE HORLOGERIE AFFINITY INDEX. Swiss Watch Interest ~ The home of Haute Horlogerie

is also the country with the highest density of HauteHorlogerie searches

Followed by Singapore, the Asian Switzerland ~also recording above average results making it the HauteHorlogerie hub for watch enthusiasts


14/38




MARKET SHARES OF BRAND SEARCHES | WORLDWIDE.Haute Horlogerie Brands


15/38


IWC, Patek Philippe, Zenith category leaders ~The top 3 worldwide Haute Horlogerie brands remainunchanged, gathering 50% of worldwide market share

Laggards' difficulties to follow the path ~ smallerbrands such as Breguet, Franck Muller and Blancpain arelosing share of the global demand while the leadingbrands such as Jaeger-LeCoultre, Vacheron Constantinand Audemars Piguet are gaining market share

Richemont leads the Haute Horlogerie market ~ 3out of the 5 most searched Haute Horlogerie brandsbelong to the Richemont Group while the Swatch Groupshigh-end brand Breguet, appears only in the 7th position


MARKET SHARES OF BRAND SEARCHES | WORLDWIDE.


16/38


MARKET EXPOSURE BY BRAND.


Weight of Regions in Haute Horlogerie Brands Searches

January to November 2011Data for Middle East region was hidden in the graph due to its low visibility within the overall figure


17/38


MARKET EXPOSURE BY BRAND.


Strong Dependency in Asia ~ Patek Philippe (46%)and especially Richemont brands: Vacheron Constantin(64%), Jaeger-LeCoultre (44%) and IWC (38%) exhibit a

strong recognition across Asia The old continent still plays a key role ~A. Lange &

Shne, Richard Mille, Zenith, Ulysse Nardin and JaquetDroz remain heavily focused in Europe

Middle East at its digital infancy~ Qatar, SaudiArabia and UAE represent no more than 1% of the totalHaute Horlogerie related searches. While their twofavorite brands are similar to the global average, theyshow more interest for Audemars Piguet, the third mostdemanded brand in the region.


18/38


SEARCHING FOR TOURBILLON MOVEMENTS | US FOCUS.


Brand Market Share of Tourbillon Movement Related Searches



19/38


Jaeger-LeCoultres Tourbillon ~ The Le Sentier-basedbrand recorded the highest number of technical searchesrelated to tourbillon timepieces thanks to its world-famousgyrotourbillon

Category leader IWC not as popular ~ Despite itsleading market share in the US Haute Horlogerie market at20%,the brand only gathered 5% of the highly targetedsearches related to technical movement demand

Breguet rises in the technical search ~Althoughrelatively low in the Haute Horlogerie ranking (5%), clientinterest for Breguet movements underlines its highlytechnical perception among American clientele ranking 4thin the Tourbillon related searches

SEARCHING FOR TOURBILLON MOVEMENTS | US FOCUS.



20/38


TOP 10 MOST SEARCHED MODELS | WORLDWIDE.


Haute Horlogerie Brands

2. PortugueseIWC

1. Royal OakAudemars Piguet

3. ReversoJaeger-LeCoultre

2012 2011 Brand Models Total

1 2 Audemars Piguet Royal Oak 7.36%2 3 IWC Portuguese 6.66%3 1 Jaeger -LeCoultre Reverso

5.68%4 10 IWC Portofino 4.71%5 9 IWC Pilot 4.44%6 5 IWC Mark 3.55%7 13 Audemars Piguet Royal Oak Offshore 3.32%8 7 Zenith El Primero 3.29%9 4 IWC Aquatimer 2.97%10 11 Patek Philippe Nautilus 2.54%SUB-TOTAL 44.53%

OTHERS 55.47%

TOTAL 100.00%



21/38


Strong market share for the leaders ~Among the500+ Haute Horlogerie models tracked by the WorldWatch Report, the top 10 models account for 44.5% of the

worldwide demand Royal Oak vs. Reverso ~After 3 consecutive years in

the first position, Jaeger-LeCoultres Reverso has beenreplaced by Audemars Piguets Royal Oak due to theRoyal Oaks strong demand evolution in Western

markets- specifically the US, UK and Italy Strong Models Awareness for IWC ~ Schaffhausens

brand accounted for half of the top 10 most searchedHaute Horlogerie models worldwide


TOP 10 MOST SEARCHED MODELS | WORLDWIDE.


22/38


TOP 10 HAUTE HORLOGERIE "CONNOISSEUR MARKETS.


Weight of Models-Specific Searches by Country



23/38


TOP 10 HAUTE HORLOGERIE "CONNOISSEUR MARKETS.


Singapores Collectors Hub ~ Singapore showsevidence of being a connoisseur market with 17.5% ofdemand directly related to the search for specific models

Thailand Emerging ~ The Thai market can beconsidered as the up and coming Haute Horlogeriespecialists; showing the most client interest for the 10thranked model, the Patek Philippe Nautilus

The demand for models in the Western world ~ Inabsolute values, US, UK and Germany account for 55% ofthe total number of searches for models


24/38



TOP 10 HAUTE HORLOGERIE AMBASSADORS | WORLDWIDE.Relative Share of Searches for Haute Horlogerie Ambassadors

1. Sachin TendulkarAudemars Piguet

2. Lionel Messi

Audemars Piguet

3. Gerard ButlerRoger Dubuis

2012 2011 Brand Ambassadors Activity Total

1 1 = Audemars Piguet Sachin Tendulkar Cricket 26.60%

2 2 = Audemars Piguet Lionel Messi Soccer 13.40%

3 - NEW Roger Dubuis Gerard Butler Cinema/TV 12.20%

4 - NEW Richard Mille Rafael Nadal Tennis 11.10%

5 4 Jaeger LeCoultre Diane Kruger Cinema/TV 8.20%6 - NEW Audemars Piguet Novak Djokovic Tennis 5.60%

7 - NEW Audemars Piguet Emmanuelle Chriqui Cinema/TV 4.40%

8 3 Audemars Piguet Michael Schumacher Motor Sports 3.70%9 6 Audemars Piguet Quincy Jones Music 2.10%10 5 NEW IWC Zinedine Zidane Soccer 1.70%

SUB-TOTAL 89.10%

OTHERS 10.90%

TOTAL 100.00%



25/38


The Little Master rules ~ Indian cricket legend SachinTendulkar remains the most searched Haute Horlogerieambassador for the third consecutive year, as a result of thehuge Indian fan base accounting for 90% of the search

volume

Gerard Butler newcomer in the ranking ~ Followinghis passion for the brand, the Scottish actor boosted demandfor the Geneva-based modern Haute Horlogeriemanufacture Roger Dubuis, claiming the third position in

the ranking

Audemars Piguet ambassadors network~ Overall thecelebrity endorsement strategy was largely dominated by

Audemars Piguet featuring 6 out of the 10 the mostsearched ambassadors


TOP 10 HAUTE HORLOGERIE AMBASSADORS | WORLDWIDE.


26/38


UNDERSTANDING CULTURAL-SPECIFIC BEHAVIOR.


Share of Specific Search Intentions by Country

Replica: All brand related searches that contains keywords associated to counterfeit intention. I.E. Rolex Replica WatchPrice: All brand related searches that contains keywords associated to price. I.E. Rolex Price List

Distribution: All brand related searches that contains keywords associated to the finding of a point of sales . I.E. Rolex shopProduct Range: All brand related searches that contains keywords associated to the product itself, its movement, its color, its material, or its style. I.E. Rolex gold



27/38



Haute Horlogerie client interests differ ~ Clientbehavior for Haute Horlogerie brands varies widelyacross the markets and regions of the world

Price sensitivity of the Chinese~ Search patterns inChina tend to be strongly related to price inquiries abouthigh-end timepieces; it is actually the second mostcommon search, right after brand related searches andjust before Models & Collections

Counterfeit searches still an issue in the US~American clients tend to search proportionally more forcounterfeit versions of Haute Horlogerie, accounting2.5% of their overall search patterns

UNDERSTANDING CULTURAL-SPECIFIC BEHAVIOR.


28/38



MOBILE USAGE OF THE HAUTE HORLOGERIE CLIENTELE.

Share of Mobile Searches Per Country



29/38



Impressive growth in mobile Internet ~While it isexpected that mobile internet users will overpass desktop usersonly in 2014, the market is already witnessing this shift inmedia consumption: 17% of global Haute Horlogerie searches

were performed through web-enabled mobile devices Strong variations across markets ~ Nearly half of the

searches conducted for Haute Horlogerie brands are throughmobile devices in Japan, while European markets show lessmobile use between 12-15% (the exception being the U.K. with20% of mobile searches )

On the go client concerns ~Points-of-sale relatedsearches are performed twice as much from a mobile devicethan a desktop, which underlines the importance for brands toadapt digital strategies for their brick-and-mortar business

MOBILE USAGE OF THE HAUTE HORLOGERIE CLIENTELE.


30/38


SOCIAL MEDIA FOCUS | BRAND ENGAGEMENT ON FACEBOOK.


Mapping Haute Horlogerie Brand Performance on Facebook


31/38


SOCIAL MEDIA FOCUS | BRAND ENGAGEMENT ON FACEBOOK.


Exclusive time on Facebook~ To date, half a millionwatch aficionados are connected to Haute Horlogerie brandson Facebook, the largest social network with 800 millionactive users worldwide

IWC leads the path ~ Consistently with its leading marketposition, IWC dominates the Facebook landscape for thesecond consecutive year on quantitative criteria (over220,000 fans) whilst maintaining a favorable level ofcommunity engagement (0.41% average)

Jaeger-LeCoultre as the challenger ~ A strong andengaging editorial and multimedia strategy on Facebook ledJaeger-LeCoultre into the top with over 84,000 fans and0.54% engagement rate

Patek Philippe stayed away from the social arena ~The Swiss watch manufacturer remained the only HauteHorlogerie brand not to be officially present on social media


32/38


SOCIAL MEDIA FOCUS | BRAND ENGAGEMENT ON TWITTER.


Mapping Haute Horlogerie Brand Performance on Twitter


33/38


SOCIAL MEDIA FOCUS | BRAND ENGAGEMENT ON TWITTER.


Haute Horlogerie Tweets ~Information sharing with clientsand influencers on the micro blogging platform is part oftodays communication reality: more than 60,000 mentions ofHaute Horlogerie brands were observed (excluding replica &

discount related tweets)

Audemars Piguets leading position on Twitter ~Amongthe 12 Haute Horlogerie brands active on Twitter, AudemarsPiguet sets the trend while capturing over 35% of the totalamount of Haute Horlogerie followers with more than 5,000followers and a 0.55% discussion rate

Engaging Jaeger-LeCoultre ~With a strong number offollowers (over 3,000), Jaeger-LeCoultre maintains above-the-average discussion rate of 0.95%, translating the brands abilityto adapt both content strategy and community management tothe different social media platforms


34/38


SOCIAL MEDIA FOCUS | BRAND ENGAGEMENT ON SINA WEIBO.


Mapping Haute Horlogerie Brand Performance on Sina Weibo

1st Dec 2011 1st Jan 2012


35/38


BRAND ENGAGEMENT ON SINA WEIBO.


High-end luxury watch brands reluctant to join theChinese social media wave ~ to date, one third of the HauteHorlogerie brands are managing an official presence on Sina

Weibo, the largest micro blogging platform in China. The 250million users of the social platform account for half of the

number of Chinese Internet users

IWC as a first mover ~ IWCs brand positioning and localcommunity management particularly reflects the brands ability

to rapidly grasp Chinas potential amongst a younger audienceof watch lovers: registering the largest number of followers(+5,000) while reaching above-the-average engagement(+0.82% VS 0.56% average)


36/38


Search QueriesExtracted from search engines, the search queries collected in the World Watch Report encompass a large semantic fieldof 17k+ keywords related to the brands including synonyms, plurals and misspellings.

LanguagesSearch queries are tracked in all major languages according to each key market: Portuguese, Russian, simplified andtraditional Chinese, Taiwanese, Japanese, French, Italian, Spanish, German, Thai and Arabic.

Search EnginesBased on Google, Bing, Yandex in Russia and Baidu in China, the World Watch Report covers an average of 85% of search

market share globally.

Data Collection and AnalysisPublic and professional tools are used to automate search volume collection, thanks to Digital Luxury Groups strongpartnerships with search engines. Once collected, this data is filtered, analyzed and translated into 14 intentions (brands,models, replicas, etc.) using exclusive Digital Luxury Group technology.

HarmonizationAs multi-products brands, such as Cartier, Chopard or Bulgari, may generate significantly more search volumes thanwatch-only brands, data is harmonized to identify watch-only demand and exclude demand for other products (for ex.Cartier jewelry, Tag Heuer mobile phone, etc.). Similar corrections have been made for brands whose names havedifferent associations such as Montblanc, Omega or Zenith.

Social Media engagement rateThe engagement rate is a qualitative indicator measuring the level of interactivity between a brand and its community oneach Social Media platform. Its calculation is based on the average number of feedback (Likes and Comments) perindividual post published by the brand (Status Updates), divided by the number of Fans on date of publication.

Deciphering Search Intentions: A methodological approachMore than tracking single brand names, the World Watch Report monitors a range of watch related searches. Using in-house developed DemandTracker technology, the World Watch Report actually tracks 17,229 keywords associated toluxury watch brands, currently managing 14 different intentions in order to better understand the real needs of the onlineluxury watch clientele.


METHODOLOGY.


37/38



IN THE PRESS.


38/38


About Digital Luxury GroupDigital Luxury Group, DLG SA, is the first international company dedicated exclusivelyto the design and implementation of digital communication strategies for luxurybrands. Since 2004, DLG has been publishing the World Watch Report a baselinemarket study for the watchmaking industry in partnership with Europa Star and with

the precious support of the Fondation de la Haute Horlogerie.

Contact:Nicolas HANSSENS

Research Manager

Strategy & Intelligence Business [email protected]

Florent BONDOUXBusiness Unit Manager

Strategy & Intelligence Business [email protected]

Digital Luxury Group, DLG SA

7 Avenue KriegCH-1208 Geneva

Switzerland

WHO ARE WE?

Visit our website to get detailed information:www.worldwatchreport.com or www.digital-luxury.com

Documents

mediakitwwrsihh2012-120119013747-phpapp02