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Is time up for the modern-day wristwatch?
There has been concern for watchmakers recently as modern devices such as mobile phones, Blackberries and iPods have become more popular. In addition to their core functions, these devices are capable of telling the time as well as any digital watch, and as a result, consumers are less inclined to buy a dedicated timepiece. The MSNBC website carried details of a survey by Experian Simmons Research, which found that American spending on watches last year was $5.9bn, down 17% from 2001.
This trend has become most apparent with teenagers and young adults. Findings from a survey by Minnesota-based investment bank Piper Jaffray last year, reported by The Wall Street Journal Online, found that nearly two-thirds of teens never wear a watch, up from half in 2005. Moreover, the survey found that only about one in 10 wears one every day. Market researchers also say that when young adults do wear watches, it is more as a fashion accessory rather than to check the time.
Max Kilger, Chief Behavioural Scientist at Experian Simmons, was quoted on the MSNBC website as saying: "It really is an anchor point — and that's the end of it. A cell phone is one step up from that; it begins to help you manage your time. And a Blackberry is one level up from that." In response, watchmakers are beginning to include a higher design element to their watches, with some more resembling wristbands than traditional timepieces. Other watches offer additional functions, such as GPS trackers, heart-rate monitors and, believe it or not, PDA capabilities.
Many watchmakers have also started to diversify their product ranges to include clothing, handbags, belts, jewellery and sunglasses. According to Investors.com, last year Fossil watches saw 65% of their revenue come from watches, 20% from leather goods, including handbags and 7% from jewellery. This diversification means watchmakers are now aiming to be more of a lifestyle brand with watches as the centrepiece, and recent research indicates it has been a successful move. Investors.com further reported that Fossil saw its earnings rising 31% year-on-year to 21 cents a share and sales growing 18% to $306.5m in the second quarter of this year.
After all, for all the functionality of an iPod or a Blackberry, a wristwatch offers simplicity and convenience. The wrist watch requires a wearer merely to lift his or her arm and look down to check the time, something the newer kids on the block do not. Surely having to reach into one’s jacket or bag just to check the time must irk those without wristwatches, which was the reason for the decline of pocket watches in the early 20th century. Watches, unlike iPods, Blackberries and mobile phones are also acceptable to have on display in any workplace or during any lecture. Finally, watches need a change of battery considerably less frequently than iPods, Blackberries and mobile phones need to be charged, meaning time’s not up for wristwatches just yet.