Wednesday, April 23, 2008

U.S watch market / Nixon watches

Market Analysis
During my research, I have segmented the watch market into four classes.
-Mass market Watches(less than $50)
-Middle-Market Watches($50-$300): women’s watches are 56% of sales
-Upper Middle-Market Watches ($300-$1000): women’s watches are 33% of sales
-Luxury Watches ($1,000- Plus): women’s watches are 41% of sales

U.S watch sales at totaled approximately $7.6 billion in 2006
The sales of Middle-Market watches totaled approximately $3 billion.

How does Nixon stand in the market?
From January 27, 2006 to June 30th 2006, Nixon contributed revenues of AUS$21.6 million and net profit of AUS $5 million to the Group.
Global sales of Billabong were at AUS $1.02 billion in 2007 and Nixon contributes 5 to 6% of Billabong International group sales.

Women Market Analysis
Here are some quotes from top executives heading the world’s leading watch brands:

“Women are much more detail-orientated. They have a different set of eyes, they look at the aesthetic beauty of a watch, they look at the different metals, they think about the colored straps that will go with the watch...they really examine all the external details of a watch because they want it beautiful.” said Randi Shinske President of Maurice Lacroix

“Unlike men who collect watches for their complexity and want to conserve them, women collect watches for the occasions and they are wearing different watches for different events”said Poulit-Duquesne.

Empirical Research
I conducted one on one interviews as part of my research with female subjects between 20 and 27 years old, they were college educated, working professionals, sociable and outgoing. What they loved about Nixon was the wide selection of colors and the price point below $200. Their number one reasons were that they had more options for fashion coordination. The subjects also noted they bought Nixon watches as gifts for their significant others or male family members as Nixon watches serve as a status symbol of unique quality and distinct styling.

Brand Spirit
The spirit of Nixon was created by board sport community who desired quality with a graphical edge with functionality in the life of a surfer or board rider. The spirit now translates into more of a fashion forward, indie flaired design to appeal to others who do not necessarily relate to the lifestyle, but seek inspiration from the board riding culture’s distinctive style.

It could be said that Nixon’s namesake derived from the American president relates to the attitude of the sixties when the spirit boundless, love was free, and a blatant rebellion against conformity were the decade’s major themes.

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