Citizen Watch, for example, recently introduced new models from its high-end line called The Citizen. While a mechanical version is priced at 880,000 yen ($6,225), a limited-edition model with only 200 units available will cost 1.045 million yen ($7,392). Citizen plans to focus on mechanical watches due to stable demand and anticipated market growth, with overseas sales starting next year.
Citizen is also actively developing other upscale lines, such as the Campanola model, which displays real-time constellations on the dial panel, and the super-thin Eco-Drive One line, featuring a movement measuring just 1 millimeter in thickness. This strategic move comes as Citizen faced challenges selling watches priced between 50,000 yen ($353) and 200,000 yen ($1,414), which experienced sluggish sales due to the increasing popularity of smartwatches and reduced consumer spending during the COVID-19 pandemic.
To improve average spending and enhance brand value, Citizen introduced more expensive models. Its fiscal 2022 financial results showed domestic sales of high-end models increased by over 20 percent compared to the previous year. A managing director at Citizen, emphasized the importance of Conveying Emotional Values and the stories behind each product, rather than solely emphasizing technological advancements.
Another major Japanese watchmaker, Seiko, has also ventured into the luxury watch market. Over the past four years, Seiko has released new models priced between 20 million yen ($141,463) and 30 million yen ($212,191) under its upscale Grand Seiko line. While some models are available for around 200,000 yen ($1,414) to 300,000 yen ($2,121), certain sought-after offerings, such as a design inspired by a white birch forest, exceed 1 million yen ($7,071) in price.
Seiko gained popularity, particularly among young people in North America, through social media, and its ranking on Chrono24, a high-end watch e-commerce site, climbed from seventh place in 2019 to third place in 2021 based on online search volumes and purchase requests worldwide. Seiko has been making its stores more appealing to a wider range of customers, including enhancing the sales corner of Grand Seiko with attractive wooden fittings.
The trend of luxury watches is growing in Japan as well, where they were traditionally purchased mainly as retirement gifts. To accommodate this shift, Seiko has focused on improving its retail stores to provide a better shopping experience for customers.
According to the Japan Clock & Watch Association, global wristwatch production increased by 13.7 percent to 1.09 billion units in 2022 compared to the previous year. Japanese manufacturers shipped approximately 52.2 million watches in 2022, maintaining a similar volume as the previous year, but the shipment value increased by 12 percent to 255.8 billion yen ($1,808,994,833).
The editor-in-chief of the watch magazine Gressive explained the appeal of luxury timepieces. Wealthy individuals, unable to travel abroad during the pandemic, sought alternative ways to spend their money. Wristwatches, being compact and space-saving, garnered significant interest from consumers. He also highlighted the exceptional quality of Japanese watch offerings and emphasized the need for further development of unique designs and functions specific to Japan to ensure continued success in the market.
As the demand for luxury watches continues to defy the smartwatch revolution, Japanese watchmakers are seizing the opportunity to captivate affluent consumers with their high-end timepieces. Citizen Watch and Seiko have strategically delved into the realm of opulence, introducing exquisite models and expanding their upscale lines. This calculated move has proven fruitful, with both companies experiencing remarkable growth in sales and brand value. While Citizen focuses on conveying emotional values and captivating stories, Seiko has successfully harnessed the power of social media to entice a younger demographic. As the allure of luxury watches transcends traditional boundaries, Japanese manufacturers are poised to conquer the global market, propelled by their unparalleled craftsmanship and a commitment to innovative designs unique to Japan.
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