A recent report by Watchfinder & Co. presents compelling data on Gen Z’s engagement with the luxury watch market, painting a picture of a generation with a burgeoning interest in luxury watches. This analysis, rooted in a survey of over 2,400 individuals aged 18 to 26 in the U.S., sheds light on the preferences, spending habits, and digital influences shaping Gen Z’s luxury watch purchases.
Elevated Spending Projections
Gen Z individuals are prepared to allocate an average of $10,870 for their next luxury watch, surpassing the spending averages of millennials ($5,325), Generation X ($5,423), and baby boomers ($2,632). This indicates a higher inclination towards luxury watch investment in this younger demographic.
Financial Behaviours and Attitudes
The report highlights unique financial behaviours among Gen Z consumers. They are:
- 21% more likely than their generational peers to leverage retailer finance options,
- 49% more inclined to sell other items before making a luxury watch purchase,
- 24% more likely to trade in an existing watch, and
- 130% more prone to taking out a loan for such purchases.
Style Preferences and Influences
Fashion and Brand Choices
Rolex, Cartier, and Omega are the preferred brands among Gen Z, reflecting their interest in well-established luxury watch brands.
The Digital Influence
Digital platforms, especially TikTok, significantly influence Gen Z’s luxury watch interests, notably in the popularity of ‘watch flipping’ encouraged by social media influencers.The report finds that 73% of Gen Z are aware of this trend, with 36% actively participating in flipping watches, underlining the role of digital media in shaping consumer behaviour.
Purchasing Patterns and Preferences
Online Shopping and Social Media’s Role
The majority of Gen Z consumers prefer purchasing luxury watches online, either from brand stores (65%) or pre-owned specialists (55%). Social media and online reviews stand as critical influencers, with platforms like Instagram, TikTok, and YouTube serving as primary channels for watch discovery and purchasing decisions.
Investment Perspectives
A portion of Gen Z regards luxury watches as a considerable investment, comparing them to traditional investment assets like gold or real estate, albeit with notable concerns about authenticity.
“This generational watch boom has been caused by Gen Z finding themselves in the center of two powerful forces,” expressed Edouard Caumon, US Country Manager at Watchfinder & Co. “Firstly, they thrive on social media and online culture is of huge importance to them. They are seeing Watchfluencers like Vookum or Mike Nouveau garner millions of views from live negotiations for watches, giving them important exposure to luxury models, heritage brands and what represents good value in a purchase. Secondly, they are placing new value on watches as jewelry-like accessories, which provide a symbol of status. When combined, these forces have combined to create spiking demand, explaining Gen Z’s high levels of spend.”
Industry Implications and Strategic Insights
Adapting to Digital Trends
The findings from the report suggest that jewellery and luxury watch retailers must pivot towards digital marketing and online retail to engage with Gen Z consumers effectively. Understanding the digital-first approach of this generation will be crucial for brands aiming to tap into this burgeoning market.
Catering to Gen Z’s Preferences
Offering a diverse range of luxury watches that cater to Gen Z’s style preferences and investment mindset will be key. Ensuring transparency regarding product authenticity and providing comprehensive aftercare services can address authenticity concerns and bolster consumer confidence.
