The most recent data describing the Italian market indicate that there is no new data. Is this absence perhaps due to a certain lassitude regarding research into socio-economic factors? For a long time now, these studies have not been optimistic, continuously evoking a still latent ‘consumer crisis.’ This crisis is slowing down, although not dramatically, yet cannot be ignored.




LORENZ, BULGARI & D&G TIME


Specificities of the Italian market
The general feeling in the Italian watch community (a feeling confirmed by Fabrizio Rinversi, Director of the watch trade magazine La Clessidra, who has his finger on the pulse of market statistics) is that the data does not vary significantly from last year, and that new and more indicative market indicators are necessary. (This conviction is also shared by Assorologi, the Italian trade organization for the watch industry.)
We have stated before that the traditional method of gathering information on Italian watch sales (using Nielsen, in most cases) is to monitor sales in a certain number of sample stores, which gives results that do not necessarily reflect reality. In Italy, more than other markets, watch retail stores are generally in the hands of individual companies or families (more than 20,000 stores, quite high in relation to the less fragmented situation in other markets). The stores are very different from each other depending on the markets they serve.
It goes without saying that research data will vary significantly depending on whether the stores are selling primarily mid or low-range products or high-end products. To do an exhaustive study in this area is thus practically impossible in Italy.




SPAZIO24 & GUCCI


Intuition rather than quantity
For these reasons, market watchers in Italy prefer to speak of feeling, in-tuition and trends rather than hard-and-fast figures, although these do exist (as well as a study on distribution that will be published later in Europa Star). The Italian watch market remains, however, quite respectable. With sales of nearly 1.1 milliard euros, Italy is the fourth largest market for Swiss watch exports on a global scale, and the largest market in Europe. It has shown continuous growth of about 5% since 2000. It has also been witness to the emergence of new trends, such as the ‘fashion’ watch (+30%) or the surprising growth of Bulgari (60 million euros in sales in its watch division alone during the second quarter of 2004, with a growth of 12.8% over the preceding period).




VERSACE & LOCMAN


The watch as a symbol
In the area of ‘feelings,’ the most interesting study was conducted by Enrico Finzi (sociologist and President of the research company Astra-Demoskopea). This was written up in a report on ‘The Italians and Time’ (based on more than 2000 interviews of people aged 14 to 79) and contained in a supplement of La Repubblica – November 2004 – dedicated to the subject of ‘Time.’ In this context, once again, the watch certainly does not play a minor role. The general feeling of people interviewed was that ‘there is never enough time’ and that as a consequence the number of people feeling ‘stressed’ is constantly increasing.
“If we consider that stressed-out people,” explains Finzi “do not enjoy their high-speed lives and feel they can never reach their desired objectives, we can understand better how this can lead to a lowering of self esteem. This is a rampant negativity that justifies a general feeling of pessimism, which has never been recorded until now in Italy. People feel that in the current situation, even if they work hard, economic gain is not assured.”
In this context, the watch is not seen as a functional instrument to read time, but rather as an object representing one’s personality.
“We have arrived,” continues Finzi, “at a sort of trivialization of the main function of a ‘timekeeper’ in favour of the growing importance accorded to its symbolic and identifiable values. From a utilitarian object, the watch has taken on the role of an accessory. When purchasing a watch, the decisions are only remotely based on reading the time. They are above all dictated by the individual personality and culture of the wearer.”

Categories
Thus, the ‘wise people’ who know how to appreciate the good and slower life (23 % of Italians according to the AstraDemoskopea study) wear traditional and classic watches, while ‘stressed-out’ people (29%) who hate the passing of time but still have to measure it, prefer watches that are simple and reassuring. There are also the ‘fashion victims’ who follow trends, without worrying about price (16%). Their watches have a relatively brief lifespan, just like their fashion counterparts.
The professional watch is, on the other hand, destined for ‘technophiles’ (18%) who live a fast life and like to have the latest and most avant-garde models on their wrist, although 14% consider themselves above fashion trends. They create their own style with the rapid pace they live, yet feel in a way that they are ‘time managers.’
It is not by chance that the watch brands, whether originally or traditionally Italian (according to the market segment, production is either Swiss Made or Asian produced) draw their inspiration from fashion trends, reproducing in their product certain elements that are more specifically psychological in nature.
We cannot explain the huge success of an ultra-technical watch such as the Il Manometro by the designer Mazzuoli other than by the demand of aficionados who love technical innovation. The same is true of recent models such as the TechnoGraphe by Paul Picot, the new Anonimo models with GMT or chronograph, or the powerful Arktos by Panerai (see article in this issue).
The mid-range segment of the market, with its optimal price/quality ratio and classically styled products, is still highly appreciated in Italy and has historically dominated the market with such brands as Lorenz, whose latest evolution of the Teatro collection is a perfect example of great rigour.
In the haut de gamme segment, one of the most exclusive and successful examples of great Italian watchmaking is the De Bethune line, designed by David Zanetta in the greatest traditions of the art of Italian timekeeping.
The appreciation for fashion brands is still very high, with brands such as Locman or those coming directly from the fashion sector. In this regard, we think notably of Dolce & Gabbana that plays on the sparkle of crystal in their ‘C’est chic’ model (whose ambitious production goal is 900,000 pieces for 2005), or of Versace with its very colourful Character line, and a new player on the scene, Prada. Among the most representative of the Italian couturiers, Prada’s diversification into watches underscores the importance given to watches by the fashion world. Its collection of wristwatches offers a wide colour variety of its bi-tonal cases, made in Plexiglas with a 1970s appeal. They are not to be missed.


Source: April-May 2005 Issue

More...Click here to subscribe to Europa Star Magazine.