War of the Brands

There's a secret war going on online in the luxury watch market and the replica market as well, a battle for territory and brand notoriety where customers and reputation are at stake and the competition is fierce.

Since the unprecedented impact of its WorldWatchReport in Baselworld last year, Geneva-based IC-Agency continues to cover the latest luxury watch industry news from the "front lines" with its 2009 online study. Successfully exploited by top consumer goods groups like Nestle with its fast-growing Nespresso brand, IC-Agency knows that this kind of online strategic intelligence is the key to competitive edge in the branding war being fought on the web today.

Germany, France, the UK, Italy: which territory is the most fertile for growth in European market share? There have been surprising shifts happening in the US market! Which brands and models are gaining ground and winning over the hearts of prospective and existing customers?

According to the report, Rolex's vast empire is confirmed by its dominance in all 5 markets studied that were done. The numbers prove that dethroning this King is almost impossible. For the 12 luxury watch brands selected for the study, Rolex racks up over 60% of demand in the top 10 online searches for specific models. However, a challenger to the King is emerging in Europe. This fierce opponent is Breitling, and the battlefield will be on French soil.

There is even more news to tell you. The study shows that the US is top dog as far as online demand goes, with 73% of total searches for the 12 luxury brands emanating from this market. Back home in Europe, the results are more unexpected. The WorldWatchReport reveals that Italy ranks 2nd behind the United States in overall search volume relating to these brands, even exceeding search demand in 4th placed Germany by 215%.

But success in the US does not necessarily guarantee loyalty on the home front. TAG Heuer ranks an outstanding number two in search volume in the dominant US online market, weighing in with over 1 million searches. Despite this branding success, the TAG Heuer replicas are not as popular as the Breitling replica watches or the Rolex replicas . Could it be the flipside of strong brand-focused advertising campaigns showcasing high profile ambassadors like Brad Pitt? Notwithstanding their laudable US positioning, TAG Heuer only ranks 7th in Italy, the number one European market for online search.

Even Longines has gained some considerable ground on Italian homefront, claiming 4th place with three times the volume of home-grown Bvlgari. However, when US figures are analyzed Longines only arrives on the scene in 7th position, claiming a mere 25% advance on the Italian brand.

In Italy, Cartier boasts an enviable 3rd place following powerhouse Omega. However, their shocking setback occurs in France, the market par excellence for luxury goods, where beloved Cartier fails to pull together even half of the online search demand of TAG Heuer or Omega. On the other hand, Breitling, the impressive challenger to Rolex in this market, is victorious in claiming 70% of the volume subscribed to the watch industry King that is known as Rolex.

The French online market is a great disappointment. It reports a little more than one-third the volume of Italy and the UK, while Germany accounts for less than half. Only time will tell I guess how the luxury watch brands will respond to these shifts in online demand, the growth of the replica designer watches have grown tremendously in every country across the Internet penetration and the ever-evolving replica phenomenon in these markets.