Watches: 2007 Key Retail Trends

• Fashion watches had a tough year, but retailers and manufacturers are workign to grow the classification going forward. Styling has become more fashion-forward, breaking down resistance among customers who keep track of the time via their cell phones and other gadgets.



• Pricepoints shifted higher to justify more “special” styling, which consumers happily paid, buying better goods for unique design. The better designer area performed best in fashion watches, with averages sell-throughs around $100 to $110. Ever-creative uses of logo treatments flaunted designer names.



• As items, whimsical pendant watches caught on with trendsetters (started by the Marc by Marc Jacobs fruit watch pendants, retail $125), while plastic Toy Watches (retail $150 to $325) blew out at retail.



• There was also momentum of higher-end fashion designer licenses, such as Badgley Mischka, which can retail up to $795.



• Fine, luxury watches continue to soar, filling fashion magazines with (often celebrity-backed) ads and six-digit priced pieces that seem almost the norm. Limited-edition rollouts boosted demand and production shortages), and some manufacturers claimed to sell million dollar-plus watches monthly. Diamonds were a must, while automatic movements for women increased.



• Seizing this momentum, fashion watch manufacturers launched mechanical automatic watches for well under $200. Skeleton dials were essential to show the inner workings.



• Emulating the hot bracelet jewelry trend, bold, structured bangle and cuff watches (often hinged or with a clasp on the bottom for easy wear) hit every material, from resin and colored enamel to exotic skins and shiny metals.



• Rose gold was popular, echoing trends in fine watches. Brown dials gained favor, and pairing these two trends resulted in a warm, luxurious look. Two-tone rose gold (mixed with black or with silver) was a fresh alternative.



• Ion plating was hot (despite being $10 to $20 higher in price than similar styles in steel). Brown was the newest color to emerge, and the popular black morphed into gray/gunmetal for fall. All black watches—black dials and black cases and bracelets—created a super-sleek look.



• Unexpected mixes (i.e., rubber with diamonds) shifted fine watches away from more traditional styling, and this trickled down to the fashion world. Tortoise and Lucite links, bangle bracelets and funky logos, all added excitement with a “fashion first, function second” approach.



• Rubber or silicone in bright colors (yellow, pink, stark white) stood out in metal and plastic watches. Ceramic continued but became more mainstream.



• Unisex styling abounded, particularly with many more oversized watches for women (and fewer distinctly labeled as gender-specific styles).



• While “bling” toned down in many other accessories classifications, glitz continues to sell in watches, with rhinestones performing well.



• Due to complications in the Far East, some stores complained that shipping problems kept them from making plan with their watch departments, but felt they would have had all merchandise been delivered.



• While sales are planned down or flat for 2008, the fashion outlook is cheery, with colors bursting on the scene—often in enamel brights. Bold-sized watches will make strong statements, and new designer licenses—including Badgley Mischka, Kenneth Jay Lane, Miss Sixty, and Jean Paul Gaultier—will hit the scene running.