Market Analysis: Burberry Sports Watch Industry The watch industry is one of the key categories of the broader personal accessories industry. Watches are further categorized by type and price. The main types of watches are mechanical, quartz analogue and quartz digital. Each of these types may be priced in the basic, mid or high-end segment. The global watches industry is pegged at US$62 billion (Euromonitor International, 2013). It is expected to witness strong to modest growth rates in the coming years. The mechanical watches will be buoyed by strong value sales while analogue watches will register moderate volume growth.
The next generation of digital watches, popularly known as wearable technology, is pegged as the biggest driver of value growth in the future (Euromonitor International, 2013). It is estimated that as technology evolves and more players jump into the fray to cash in on the growing market, smart watches will rule the roost. In addition to the basic function of time keeping, they will double up as a personal assistant. The digital watches cater to two broad segments in the market. They appeal either to the young generation or to the sportspeople.
The sports watches have to vie with some of the smart watches brands that promise to offer form as well as functionality. Features like additional durability and water-resistance make these smart watches pretty attractive for sportspersons. Competitor Analysis The sport watch industry is pretty competitive. Numerous well-know companies compete in the market place and try to woo the customers. The prominent players in the sports watch industry include Adidas, Casio, Citizen, Seiko and Tissot (Lall, 2013). Adidas is well known for manufacturing products that ‘help athletes perform better, play better, feel better’.
The company’s endeavor is to help its customers perform at their ultimate level. Adidas manufactures a vast array of products that include sports equipment, apparel and accessories. The behemoth strives to be the leader in the sporting goods industry. Its products are sold in more than 160 countries of the world. The German company is a serious contender to increase its market share in the sports watch industry with the help of its Micoach Smart Run Watch. Priced at $399, the MiCoach Smart Run has a music player and an interactive training service set up.
The gadget weighs 2.8 ounces and its 410mAh lithium ion battery runs for two weeks on casual mode (Poeter, 2013). Casio is well-renowned for its calculators, musical instruments and watches. The company was one of the pioneers in developing the quartz watches. Casio, based in Tokyo, Japan, has made a mark in the sports watch industry with its G-Shock range of digital watches. Casio has recently launched G-LIDE digital watches which are equipped with water and shock resistant technology.
G-LIDE watches are available in four variants and boast of 3 multi-function alarms, 1/100 second stopwatch, super illuminator LED backlighting and have the potency to display World Time of 29 time zones (Casio. com, 2015). The launch of G-LIDE range of watches will help Casio cater to the needs of the low-price and mid-priced segments. Citizen, founded as Shokosha Watch Research Institute, is one of the largest manufacturers of watches in the world. The Japanese behemoth has made foray into the sports watch market through its Eco-Drive brand. The unique selling proposition of this watch is that it does not need a battery.
The environment friendly gadget harnesses the power of natural and artificial light and converts it into energy. Eco-Drive also boasts of an atomic multi-band timekeeping. One of the biggest advantages of owning this sports watch is its trouble free maintenance (Citizenwatch. com, 2015). Seiko is in the business of manufacturing and marketing watches, electronic devices, semiconductors and apparel. The market offerings of the company also include information technology and system integration services. The Tokyo, Japan based company is a dominant player in the Americas, Asia and Europe.
Some popular watch brands of company are Grand Seiko, Seiko, Credor, Seiko Brightz for men and Seiko Lukia for women (Seikowatches. com, 2015). The wide range of watches enables Seiko to target customers across demographic profiles. Headquartered in Oregon, United States, Nike designs footwear, apparel, equipment and accessories. The company conducts its business operations with the mission of bringing inspiration and innovation to every athlete in the world. The Nike+Sportwatch GPS is an innovative gadget from the company’s repertoire. The watch keeps track of heart rate and calories burnt.
It has an inbuilt timer and is equipped to mark laps and intervals. The gadget is nothing less than a personal coach on the wrist that keeps a tab on pace, distance and gives run-reminders (Nike. com, 2015). The watch is available for $130 and is likely to pose stiff competition to the other brands in the market. Tissot was founded in 1853. At present, Tissot is a member of the Swatch Group. The brand, well known for its signature Innovators by Tradition, is present in 160 countries across the world.
The company is committed to performance and precision. It is associated with numerous sporting events FIBA, AFL, MotoGP and the World Championships of cycling and ice hockey. The T-Touch from Tissot is a real masterpiece. It serves as an analog as well as digital sport watch. The watch is made of superior titanium and is equipped with an altimeter, a barometer, a compass, and a thermometer (Tissot. ch, 2015). In addition to this companies like Gucci, Louis Vuitton and Tag Heuer operate in the luxury segment and cater to the needs of a niche segment (Euromonitor International, 2013). Customer Behavior World over, there is a growing awareness about the benefits of incorporating exercises and physical activity in the daily regimen.
Consumers are actively adopting healthier food options, active lifestyles and are engaging in more sports. These customers expect that a sports watch should perform various functions like keeping time, measuring heart rate, and counting calories burnt. The customer behavior differs across demographic profiles. The young customers are highly influenced by their peer group while the middle-aged segment seeks information about the product features, compares various models and performs a thorough evaluation before deciding the brand.
Target Market The sports watch can be targeted at the amateurs or the professionals. The Burberry sports watch will be targeted at people who take to sports and exercises for recreational purposes. The Burberry brand represents a judicious blend of luxury and functionality. The company will adopt the strategy of price skimming by keeping the price high. The product will be sold to the economically upper sections of the society. This strategy will enable Burberry by-pass many competitors like Nike and Adidas that offer products in the mid-price segment.
The Burberry sports watch will be sold to consumers across demographic profiles. The young will be wooed by the colors and features of the product. The middle-aged group will be sold variants that complement their lifestyle. References Adidas. com, (2015). Adidas Official Website | Adidas. [online] Available at: http: //www. adidas. com/ [Accessed 8 Feb. 2015]. Casio. com, (2015). CASIO Worldwide. [online] Available at: https: //www. casio. com/ [Accessed 9 Feb. 2015]. Citizenwatch. com, (2015). Citizen Watch Company – Citizen Eco-Drive / US, Canada, UK, Ireland.
[online] Available at: http: //www. citizenwatch. com/en-us/ [Accessed 9 Feb. 2015]. Euromonitor International, (2013). Watches Global Trends and Opportunities. Passport. Lall, V. (2013). Top 10 Sport Watches for Men. TBP. [online] Available at: https: //www. citethisforme. com/cite/newspaper [Accessed 11 Feb. 2015]. Nike. com, (2015). Nike Official Site. [online] Available at: http: //www. nike. com/ [Accessed 8 Feb. 2015]. Poeter, D. (2013). Adidas Lifts Curtain on $399 Smart Run Fitness Watch. PC. [online] Available at: http: //www. pcmag. com/article2/0,2817,2425874,00.asp [Accessed 11 Feb. 2015]. Seikowatches. com, (2015). Seiko Watch Corporation. [online] Available at: http: //www. seikowatches. com/ [Accessed 9 Feb. 2015]. Tissot. ch, (2015). [online] Available at: http: //www. tissot. ch/ [Accessed 9 Feb. 2015].