Erik Boneta of Boneta Inc. Examines the Growing Importance of the Asian Market for Luxury Watch Makers
NEW YORK, NY / ACCESSWIRE / July 13, 2019 / The luxury timepiece industry has received a sizable revenue boost in recent years, with several mitigating factors contributing to the rising trend on a worldwide level. Erik Boneta, owner of luxury watch wholesaling enterprise Boneta Inc., points to the pivotal role the Asian region has played in the market’s sustained growth – particularly in China and Hong Kong. The New York-based fine watch retailing expert highlights the market’s expanding buying power, and what it means for manufacturers and sellers as the industry demographics evolve.
With momentum already on an upward swing prior, the early months of 2018 saw the luxury watch market experience its largest growth in almost five years, according to The Federation of the Swiss Watch Industry, as Asian markets became the primary driver of sales growth within the sector. Hong Kong, Switzerland’s largest market, went up 29.5%, while South Korea surged 34.7%, Thailand rose by 28.0%, China climbed 13.4%, and Japan increased by 14.0%. From January to June, Hong Kong and Mainland China contributed over $237.6 million in exported sales – a one-year increase of 29.5% and 13.4%, respectively.
For those who follow the markets, the news is not surprising, as mainland China accounted for 25% of all Swiss watch shipments to the Far East in 2017, with total value surging by 19% – the biggest jump in three years. These figures corresponded with a shift in web browsing data, as more Chinese visited luxury watch brands’ websites than Americans, representing a 21% of global traffic. The catalyst behind this emerging trend appears to be the changing of regional preferences and demographics, an aspect clearly evident within the international luxury-goods business as a whole, as sales gains in the U.S. continually lag behind the Asian market. LVMH, whose inventory ranges from high-end watches to champagne, reported revenue growth of 7% in the U.S. during the first nine months of 2017, a contrast to the 19% mark for Asian countries.
This disconnect is especially pronounced when it comes to timepieces, observes LVMH executive Jean-Claude Biver. “For Asians in general, the watch is much more of a status-symbol instrument than in any other part of the world,” he said. While American markets still comprise a substantial share that has itself risen the last two years, western consumers are instead starting to slowly gravitate towards tech-oriented timepieces, such as Apple’s iWatch. Erik Boneta sees the sustained increase of sales in the Asian market as helping to stabilize the global recovery of the luxury watch market as a whole – with momentum expected to continue into the coming years.
Erik Boneta is an entrepreneur based out of New York City, with a primary focus on thecontinued success of his luxury timepiece distribution company, Boneta Inc. A graduate of St. John’s University with a degree in Finance, he has utilized an expertise in business development to implement new and innovative investment strategies, often centering on start-up enterprises. Boneta has also expanded his business acumen to the restaurant industry, maintaining co-ownership of several upscale eateries throughout the NYC area.
Erik Boneta – Founder of Boneta Inc. in New York City: http://erikbonetanews.com/
Erik Boneta of Boneta Inc. on the Enduring Popularity of Swiss Timepieces among Vintage Watch Buyers: https://finance.yahoo.com/news/erik-boneta-boneta-inc-enduring-213000723.html
Erik Boneta of Boneta Inc. Explores Factors Supporting the Growth of the Fine Timepieces Market: https://www.bloomberg.com/press-releases/2019-06-04/erik-boneta-of-boneta-inc-explores-factors-supporting-the-growth-of-the-fine-timepieces-market
SOURCE: Boneta Inc.