- 30th May 2022
Luxury Watches Market and Luxury Packaging
Watches are one of the most significant symbols of luxury.
From Rolex to Omega, TAG Heuer to Cartier, luxury watch brands are a fashionable accessory that delights both casual buyers and serious collectors.
Now more than ever, consumers are buying watches to suit their tastes, as well as to make a safe investment.
It comes to no surprise, then, that the industry is in the midst of a boom like none ever before. To know why this is, there are some important factors about the growing industry that even the most beginner of watch investors and collectors should know. This includes the top brands, the size of the growing market, and the importance of luxury packaging.
We explore the growth of the luxury watch industry and investigate how luxury packaging contributes to the current boom.
The appeal of the luxury watch market
The watch industry reinstated itself as a luxurious investment in the 1990s following an industry drop in the 1970s and 1980s. Today, luxury watches are seen as an indicator of a person's taste level and wealth.
Beauty and lifestyle small business Blush and Pearls says that watches are a way to make a strong impression. They said: “A luxury watch can often be described as a way to see one’s true wealth and taste. You can always learn about a person by the brand, design, and general detailing that can be found around the watch.
You can make an instant impression by wearing a watch to various occasions, whether it is a more formal event or a business meeting. Regardless, you should plan your outfit according to how you want your watch to be seen. Watch is the ultimate status symbol.”
Meanwhile, jeweller company Cuttings said: “Many [people] buy watches as a symbol of a milestone within their lives. Whether they are celebrating that dream job, an exclusive promotion, getting married or having a child. Watches can hold memories for many people, and thus they are purchased at a high point in a [person’s] life”.
“The price of a watch is what holds the status symbol for many, as luxurious watches can come with high price tags.”
How big is the global luxury watch market?
According to a study by business aviation company, Fast Private Jets, the luxury watch market has been on a steady rise over the past five years. The website reports that the luxury watch market "remains one of the most consistent investment choices". With the market summing up to £18.64bn and predicted to grow 207% in the coming years.”
Data analysis company Technavio also has high aspirations for the growth of the luxury watch market. In May, the company reported a 0.70% market growth in 2021. It expects to witness an incremental growth of USD 1.78bn between 2020 and 2025. Expanding at a CAGR (compound annual growth rate) of 1%.
Pre-owned luxury watches are contributing to industry growth
One key motivator for the growth in the luxury watch industry comes from the increasing demand for sustainability. As the global luxury watch market has grown, so have the eco-trends and, with them, the pre-owned luxury watch market.
In an interview with Forbes, luxury watch brand Panerai CEO Marc Pontroué said: "Last year we surveyed over 26,000 luxury watch owners and collectors. 45.6% of respondents admitted they had at least one luxury watch just sitting at home that they don’t wear. What if these watches went back into the commercial system? What impact would that have?”
"The message is clear that the Swiss watch industry has decided to go in the direction of circularity, whatever the brand is. The question is, how innovative and quick we can be in acting together to react to that?”
The importance of luxury watch packaging
Sustainability doesn’t just end at the pre-owned watch market, though. Luxury packaging is another booming industry that is helping the luxury watch market be more eco-friendly and convey status in a way that ordinary, non-luxury packaging does not.
Luxury brands are currently in a strong position when it comes to sustainability. Luxury packaging, much like the luxury watch market, has more longevity than the average packaging. Adding to the idea of circularity and the re-use model. This includes not only the packaging when it comes to transport, but also the watch box and storage itself.
At GPA Global, for example, luxury packaging is designed with sustainability at the forefront.
Earlier this year, we released 'Eco-Logic', a range of biodegradable packaging made from moulded pulp for cosmetic markets.
Products like Eco-Logic show the change that is happening in the packaging industry and, specifically, luxury packaging.
Luxury watch packaging as ‘branding’
Luxury packaging is also a vital part of the luxury watch industry when it comes to branding.
Luxury goods are a symbol of status and wealth. If the packaging does not meet consumer's expectations, the overall value of the product itself is lost. Put simply, customers do not want to receive an expensive purchase wrapped in cheap, flimsy packaging.
At GPA Luxury we believe that luxury bespoke packaging is part of the luxury experience and therefore cannot be ignored. Corinna Chandler, Business Development Director at GPA said: “In today’s overcrowded market, the meaning of luxury is moving away from the physicality of a product towards the experience surrounding it and what it represents to the user. This, and a new generation of eco-conscious consumers, have resulted in a desire for luxury brands whose products invoke a sense of timelessness and longevity. In the modern age, luxury is made to last."
The cost of luxury packaging
Because luxury products tend to be expensive, many expect luxury packaging to also come at a lucrative price. However, the cost is not as high as watch companies would assume.
The price of a luxury packaging box depends on the size of the order, the materials used, and how complex the design is.
Investing in luxury packaging is more likely to improve a product than hinder it, as packaging plays a major role in product sales. According to the printing company Meyers, 72% of American consumers say that the packaging of a product impacts their decision to buy it.
30% of businesses say that their sales went up after they improved the packaging.
More so than the branding, packaging serves to protect products from damage. This saves companies from losses as a result of rough transportation.
At GPA Global, every single client and piece of bespoke packaging is approached individually. Materials, quality expectations, and quantity all have a significant impact on the price.
When it comes to packaging, GPA offers expertise on responsibly sourced materials, brand alignment, and material provenance.
We also test our packaging to ensure long-term functionality and performance.
What does the future hold for the luxury watch market?
The global luxury watch market is expected to grow over the next few years, with the luxury packaging market also set to grow alongside it.
Optimism for luxury watch sales is certainly justified by a growing demand from consumers and collectors. Luxury watches being seen as a great investment. One that is lucrative and sustainable.
The future is bright for the luxury watch market, the pre-owned luxury watch market, and luxury packaging.
The future will see an increasing number of sales, revenue, and consumers realising the investment potential.
We are here to help!
Are you a high-end watch company looking for a packaging supplier?
With years of experience and industry expertise, we are confident that we are the best fit for your brand.
If you have any questions, please contact Corinna Chandler, our Business Development Director, at email@example.com
She will be happy to assist you!
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