24 March 2017
The Global smartwatch market is expected to reach $10 billion witnessing a growth of 18% in 2017, according to research firm Canalys. The increase in shipments in smart watches will put a pressure on the traditional watch sector as customer’s ship to wearable’s.
The traditional watch sector is expected to witness a decline in demand, with the smartwatch market predicted to reach two-thirds of the value of the traditional Swiss watch market this year.
Traditional watchmakers will feel a pressure as more high-end smartwatches are released by smartwatch makers. Watch maker Fossil has shifted to launching wearable’s as the traditional watch market is shrinking. Basel world 2017 which is scheduled for March 23 – March 30, 2017, in Switzerland, will see the launch of a number of Android wear watches.
“Connected watches appeal to buyers who want a watch first and a basic band second. With fewer people wanting to buy traditional watches, connected watches with limited functionality risk ending up like basic bands: being taken over by smart watches by 2018,” said Canalys Analyst Jason Low. “Watchmakers yet to take action need to switch their focus to smart watches for long-term growth.”
“Forming partnerships with technology companies will be the first step. A well-formulated strategy to sell a watch will play a larger role as watchmakers have to appeal not only to watch fans but consumers who are yet to buy a wearable,” said Jason Low.