The watch world is seemingly struggling to keep up with hectic trade show schedules as the number of such events taking place each year dramatically increases. Even the better-known luxury brands are finding it difficult to time new releases, innovations and designs to coincide with rapidly growing schedules, according to a recent New York Times report.
New Pressures
The pressure to come up with new pieces has prompted comments from those working within the industry regarding the unrealistic expectations now being placed on watch manufacturers as a result.
Despite the recent economic recovery and this increased activity, however, Swiss watch sales rose by just 2% last year. Many believe that rather than benefiting the industry as a whole, the increasing number of trade shows has led the way for companies to come up with more novelty-inspired pieces as opposed to anything that will effectively move the industry forward in terms of new technology and innovation.
New Operational Methods
What's more, there has been a significant change in the operational methods of the industry. This appears to be partly due to a shift in the way information is shared since the advent of the internet and other technological advances. The nature of relationships within the world of watch manufacturing has also changed, as the number of touch points continues to increase. Where retailers would once place orders at a trade show on an annual basis, there is now the capability for organisations and manufacturers to work together at any time. As such, trade shows have lost a certain degree of their main function and lack their previous appeal.
Poor Attendance
These additional pressures, alongside the reduced value that even the bigger names in the industry feel they are getting from such events, have resulted in poor attendance. Certainly, there is evidence of a reduction in the number of orders being signed at the shows, especially given the ease with which potential customers can gather information and connect with manufacturers at other times.
Increased Reach
Also noted by the New York Times was the extra pressure placed on the Swiss watch industry to market their new releases as part of the effort to stimulate growth worldwide. Desperation to move the markets forward and to gain competitive advantage have led to manufacturers stepping up their campaigns and reaching out to increasingly global markets.
Emerging and Developing Economies
For emerging or newer markets, trade fairs are still considered an important contact point for customers and retailers, as well as forums for networking. They appear to provide additional exposure for those previously unable to access more exclusive markets and help to promote brand affinity.
Changing Functions
Basel World and other long-established trade shows are not completely defunct, even in developed markets. Top brands still use these as arenas to compare themselves against their competitors and to position themselves within the international markets.