Business Outlook
Concerning the Timepiece Industry, following the full resumption of normal travel between Hong Kong and the Mainland, there was a brief period of retaliatory consumption in local retail. However, the industry considers that the sales of timepieces would not be able to return to their peak for the time being. As regards the Optical Industry, with the increased number of tourists, there has been a significant increase in local sales, especially for popular brands, after the resumption of normal travel across the borders.
Comparing with the Timepiece Industry, members of the Optical Industry are more optimistic towards their industry’s prospect. As the number of tourists increases, it is expected that their business will perform even better. Members of the Timepiece Industry on the other hand are more cautious and believe that it will take time for their business to recover to pre-pandemic levels. In view of the intense competition, they are worried that Mainland tourists may not choose to shop for watches in Hong Kong in the future.
In terms of timepiece, traditional mid to low-priced watches are hard hit by smart watches which are gaining popularity among customers. To increase the competitiveness, many mid-priced watch brands have not only enhanced the functions of their watches, but also cut down on the number of their watch models and switched to develop more premium lines.
Regarding traditional watches, Swiss watches (especially high-priced watches) are still very popular in the market. Apart from brand new high-end watches, the demand for second-hand high-end watches has increased in recent years, mainly because many top brands are limiting their annual production and some popular watch models are in short supply or have even been ceased production.
In terms of the Optical Industry, the demand for optical services has been increasing steadily, mainly attributed to the growing myopia and ageing population. It is believed that there will be a great potential for further development of myopia management lenses and eyewear with progressive lenses.
Consumers are more concerned about eye health and tend to expect more professional services, rather than simply buying eyewear. Optical stores have to provide more value-added services, such as offering comprehensive optical examinations at concessionary prices, with a view to increasing the number of visits made by each customer.
Another group of consumers, the younger ones, who do not have special eye care needs often view eyewear as fashion accessories and usually look for diverse styles. Therefore, chain stores specialising in young and popular eyewear have also been well-received by consumers in recent years.
Nowadays, many consumers spend a lot of time using social media. Comparing with traditional advertising, Key Opinion Leader (KOL) and Key Opinion Consumer (KOC) have a greater influence on consumers. Many brands have employed KOL/KOC for marketing purposes.
In addition, the new generation of consumers are usually low in brand loyalty, and they may not even have any preferred brands. When they make a shopping decision, they often consider whether the brand/product concept aligns with their own values. Therefore, many brands are committed to creating brand/product stories so as to impress the consumers.
Consumers are also placing more emphasis on the shopping experience than ever before, expecting more timely services, as well as more diversified and convenient shopping modes. Many retailers have transitioned from pure physical stores to O2O (online to offline) sales model. Connecting online and offline operations seamlessly, creating more interaction with consumers and optimising their shopping experience have become a prevailing trend.
A lot of advanced technologies have been employed in the manufacturing of timepieces as well as eyewear, such as computer-aided design (CAD), computer numerical control (CNC) technology and automatic/semi-automatic production lines. In addition, attributed to technologies such as Big Data and 3D printing, designers can refer to past design parameters and other statistical data to significantly shorten the time from design to production and deliver diversified (including customised) products to consumers.
New technologies have also been widely used for retailing and brand promotion. For example, many companies have started using artificial intelligence (AI) to assist in processing online inquiries, providing virtual eyewear or watch try-on services, launching exclusive apps to provide product information, online shopping functions, and increasing interaction with consumers. Some brands have also ventured into Non-fungible Token (NFT) market by launching physical watches in conjunction with digital art.
To provide more precise eye examination and care services, optical centres and eyewear stores have also brought in advanced optical and ophthalmic instruments, myopia control and progressive lenses in recent years.
Environmental protection has become an issue of concern in recent years. To fulfil social responsibility and enhance brand image, timepiece and optical brands have begun to focus on the sustainability of their products as well as the sustainability of their enterprises as a whole. Most local companies achieve sustainability of their products through the selection of raw materials’ sources, control of carbon dioxide emissions during production and product packaging. Looking forward, a greater emphasis will be placed on Environmental, Social and Corporate Governance (ESG). Timepiece and optical enterprises will shift their focus from merely environmental protection to a broader scope covering social responsibility and corporate governance, such as issues of labour rights and business ethics.
