Instagram emerges as the leading social platform for watch brands, witnessing an average of 259 posts from 60 luxury houses within a year. Facebook follows with an average of 162 posts. All brands in the Vogue Business Watches Index possess a YouTube channel, with Rolex claiming the top spot with two million subscribers, which is five times that of Omega and about ten times that of Cartier. However, only 14 out of the 20 surveyed brands have a TikTok account. In a product category where video content highlighting craftsmanship and design details is highly sought after, the industry has a long way to go in terms of relevant marketing strategies tailored to the digital era.

Establishing Priorities

In the innovation chapter, three key areas are identified: product, communication, and business. Key strategies for success include investing in product development, implementing gamification and augmented reality, and providing space for women in leadership.Women are not only an important consumer target for growth but are also underrepresented in marketing and executive leadership positions. Although there is a slow change in ambassadorship with more women from diverse fields being appointed as watch brand ambassadors, the top levels of the industry are changing at a glacial pace. Rare examples of females in decision-making roles include Ilaria Resta, a Swiss-Italian with a beauty background who succeeded François-Henry Bennahmias at Audemars Piguet, and Marie-Laure Cérède, who has led Cartier's watch division since 2017. Heritage watch brands aiming to attract more female customers should consider the visibility of women in their marketing and leadership teams, as this is crucial in influencing female purchasing power. Additionally, brands must consider how to break down barriers to entry for junior roles to increase diversity in the workforce and safeguard the watchmaking trade for the next generation.Innovation in the business model is bringing about widespread changes, especially in the way shoppers access luxury timepieces. In recent years, the secondary market for watches has witnessed significant growth. Online platforms for trading vintage watches, such as Chronext, have flourished. Meanwhile, newly minted crypto millionaires and cash-rich consumers stuck at home during the pandemic have increasingly turned to watches as an asset class. As a result, banks like Morgan Stanley now regularly publish updates on price changes for selected timepieces in the vintage market. Several brands now offer certified resale programmes, including Rolex, Audemars Piguet, and Vacheron Constantin. The secondary market appeals to both collectors seeking rare, sold-out lines and new (often younger) watch enthusiasts with more limited budgets looking for better deals. However, there is still substantial room for growth. Despite 59% of consumers demanding brand-owned resale services, only 10% of Index brands offer this directly.In the innovation pillar, Breitling takes the lead, followed by Audemars Piguet and Hublot. Among the three, only Breitling is in the top 10. This shows that while innovation is still an experimental field, it can help brands lower in the ranking in pay-to-play areas like digital marketing differentiate and stand out from the industry's top performers. This is definitely something for brands to pay attention to, especially when macroeconomic headwinds are forcing consumers to prioritize more transient categories like apparel over luxury goods that endure the test of time.Comments, questions or feedback? Email us at feedback@voguebusiness.com.