Smartwatch development trends are different from mechanical watches

Traditional watches are losing market share, while smartwatches are growing every year. Photo: Istarmax.

According to a report from the Swiss Federation of the Watch Industry (FHS) in mid-2024, global watch exports are on a sharp downward trend, especially in the price segment under VND100 million. Watch exports also decreased most clearly in the Asian market, with China down 21.6% and Hong Kong down 19.9% compared to the same period last year. Other markets such as Saudi Arabia, Singapore, UAE and South Korea also declined significantly.

Swatch Group reported a 10.7% drop in global revenue, largely due to weak demand in Asian markets. Richemont also saw a 27% drop in revenue from China, while its watch division fell 13%.

This situation shows a decline in demand, with a particular decline in the mid-range watch segments, according to FHS.

Meanwhile, according to Canalys, the global wearable technology market is growing steadily at around 0.2% year-on-year. Of which, the basic smartwatch segment continues to grow by 6% year-on-year. The smart bracelet segment continues its downward trend, down 14% compared to 2023.

“While both smartwatches have short-term growth potential, in the coming years these segments could compete directly as they increasingly target similar features and markets,” Canalys analyst Jack Leathem said in the company’s report.

“New features are crucial to maintaining the appeal of smartwatches, basic or low-cost products lacking features and innovation will soon reach their limits,” Mr Leathem added.

In Vietnam, smartwatches are also growing. At a recent launch of a new brand, a representative of a smartwatch company said that the market will still grow by 4% in 2025. However, a representative of a domestic watch distribution chain said that traditional watches still have their own customer groups.

“There is a large group of customers who prefer to use traditional watches because they love the simplicity of quartz watches or the craftsmanship of mechanical machines,” said Mr. Bui Tuan Minh, CEO of the Galle Watch system.

In addition, Mr. Minh said that many customers only buy one smartwatch, but own many traditional watches with different designs.

Traditional watches also have the advantage of being able to create small, limited batches based on cultural and historical concepts - a product type that is often favored by Vietnamese and Asian customers in general, experts said.

Recently, in Vietnam, Seiko Epson launched Orient Vietnam Special Edition 2025. The watch model is developed from the famous Classic Semi Skeleton line, adding a star symbol design symbolizing the 50th anniversary of the country's reunification and the map of Vietnam. The product is produced in 304 pieces based on the number 30/4.

Orient Vietnam Special Edition 2025 with a quantity of 304 pieces inspired by Vietnamese history, launched on November 30. Photo: NN.

In 2020, Frederique Constant also launched the Vietnam Limited Edition 2020 based on the existing product line but added symbolic elements related to the Vietnamese market. Similar to the Orient SK Vietnam Special Edition 2022 model.

“Cultural value is a big competitive advantage for traditional watches, for example, with models specific to each market, brands can bring products that contribute to promoting the image of Vietnam and this will be an important customer segment,” Mr. Minh commented.