<4D F736F F F696E74202D20455F D838A815B819A E5F98728E9E8C7682C98AD682B782E992B28DB82E B8CDD8AB B83685D>

Transcription

1 Consumer Awareness Survey on Watches 2014 (Summary of Survey Results)

2 Contents Summary Outline Brand of watch you want 33 Summary Outline 4 Reason for preferring specific brand 36 Research before purchasing a watch 37 Review Kind of research done in advance 38 Review: 1 6 Media which are influential in purchasing a watch 39 Review: 2 7 Magazine subscription ranking 41 Review: 3 8 Magazine which motivates to buy a watch 42 Review: 4 9 Purchase price of watch owned by region 44 Price range of watch you want to buy by region 45 Screening survey Brand of watch owned by region 46 Screening survey (extracting survey subjects) 11 Brand of watch you want by region 47 Purchase of watch in Survey Results 1: Subjects Profile Brand of watch you purchased in Subjects Profile (basic attributes) Place where you bought a watch in Sex and age distribution Geographical distribution 13 Timing of purchasing a watch in Occupational distribution Marital status Family structure Reasons for preferring specific brand in Household annual income 14 Purchase price of a watch purchased in Allowance 15 What to spend allowance on 16 New Questions for 2014 Favorite manufacturing country for your watch 55 Survey Results 2: Main Survey Image for a watch of Swiss made 56 Number of watches owned 18 Awareness of Switzerland being a kingdom of watch 57 Brand of watch owned 19 Intention of purchasing a smart watch 58 Purchase price of watch owned 22 Reasons for having bought or wanting to buy a smart watch 59 Location of purchase 23 Impact of consumption tax increase to purchasing a watch 60 Willingness to purchase watches online 26 Brand image depending on sales channel 61 Important factors in choosing a retailer 27 Economic recovery s impact to purchasing a watch 62 Favorite type of watch 28 Favorite function of watch 29 Highlights of Survey Results Favorite movement of watch (drive system) 30 Highlights of Survey Results 64 Price range of watch you want to buy 31 Price range of watch by function you want to buy 32 2

3 Summary Outline 3

4 Summary Outline The Federation of the Swiss Watch Industry FH conducted a questionnaire on Japanese consumers awareness of and buying trends for watches, in the same manner as it did in 2010 and We expanded the survey questions to reflect suggestions from member companies of the federation, importers and affiliates, and made it possible to compare the results for questions that also appeared in the previous surveys. The survey was designed to be conducted on the Internet, and was targeted at male and female people aged 20 or over who were interested in luxury watches. We asked Yano Research Institute Ltd. to carry out the survey. It was conducted on February 10 and 11, 2014, and we obtained 1,500 valid responses. The following analysis was undertaken by Yano Research Institute Ltd. Survey area Whole of Japan Survey method Internet questionnaire Survey date Monday, February 10, 2014 and Tuesday, February 11, 2014 (national holiday) Survey subjects Male and female aged 20 or older in Japan who satisfy the following conditions (equal proportion): 1) Have bought watches by themselves; and 2) Are Interested or somewhat interested in watches that cost 100,000 yen or more. Number of valid responses 1,500 4

5 Review 5

6 Review:1 Price range of watch you want to buy 1) Purchase price shifting to low-range to medium-range prices The purchase price of the watch you want is gradually shifting from low-range to medium-range prices. The price range of 100, ,000 yen increased 1.4 points from The price range of less than 100,000 yen declined 0.4 points and of 300,000 yen or above dropped 1.0 point from In the price range of 100, ,000 yen, the ratio of female respondents declined 0.2 points while male increased 2.7 points from In particular, the ratio of male in their 40s rose 5.8 points, showing a clear shift to mediumrange prices among consumers in relatively higher age group. 2) Women are shifting prominently to higher price range With regard to the price of the watch that consumers want to buy, 300, ,000 yen was the most popular response for both males and females samples. Among the male samples, 300, ,000 yen was the top response with 16.5%, followed by 100, ,000 yen with 14.8% and 500,000 1,000,000 yen with 12.9%. Among females, 300, ,000 yen was the highest with 15.6%, followed by 200, ,000 yen with 14.1% and 500,000 1,000,000 yen with 13.0%. The price range of 300,000 yen or above declined 3.9 points among male respondents but increased 2.0 points among female samples. In particular, the ratio of female in their 40s rose significantly by10.7 points. Factors behind the shift to higher price range appear to include the growth in the number of working women and momentum to promote women to the managerial position. For users interested in watches costing 100,000 yen or above, the price range of affordable luxury watches that you want to buy, is 300, ,000 yen, and males continue to be willing to pay one range higher to buy the watch desired. However, the price range of watch women want to buy is increasing price range of watch you want to buy Total(n=1040) 2012 price range of watch you want to buy Total(n=1305) 2014 price range of w atch you w ant to buy Total(n=1266) 6.6% 1.2% 6.5% Less than 10,000 yen 10.6% 10,000 30,000 yen 13.0% 16.0% 13.7% 13.0% 9.5% 10.0% 30,000 50,000 yen 50, ,000 yen 100, ,000 yen 150, ,000 yen 200, ,000 yen 300, ,000 yen 500,000 1,000,000 yen 1,000,000+yen Total male Male 20s Male 30s Male 40s Male 50s n=544 n=664 n=649 n=142 n=125 n=109 n=130 n=194 n=165 n=152 n=186 n=178 n=120 n=159 n=197 Less than 10,000 yen ,000 30,000 yen ,000 50,000 yen , ,000 yen , ,000 yen , ,000 yen , ,000 yen , ,000 yen ,000 1,000,000 yen ,000,000+yen Total female Female 20s Female 30s Female 40s Female 50s n=496 n=641 n=617 n=127 n=194 n=170 n=127 n=171 n=155 n=140 n=152 n=149 n=102 n=124 n=143 Less than 10,000 yen ,000 30,000 yen ,000 50,000 yen , ,000 yen , ,000 yen , ,000 yen , ,000 yen , ,000 yen ,000 1,000,000 yen ,000,000+yen E2 6

7 Review:2 Next desired purchase Male consumers continue to prefer luxury mechanical sports watches and females want luxury fashion watches and ROLEX for men and CARTIER for women have established popularity. Meanwhile, domestic watch brands made a good showing. ROLEX, OMEGA and CARTIER have established popularity. Needs for ROLEX and OMEGA remain strong among male, and demand for CARTIER stands out among women. HAMILTON, PIGUET and HARRY WINSTON raised popularity significantly. Needs for casual fashion brand watches grew in 2012 while luxury brand watches saw their popularity rise in Among male respondents, SEIKO moved up in the popularity rankings from 5th to 3rd and CASIO from 6th to 5th. High-performance, high-function and high valueadded product line distinctive of domestic brands and the strategy to enhance luxury products worked successfully ROLEX OMEGA CARTIER FRANCK MULLER BVLGARI SEIKO HERMES TAG HEUER CASIO CHANEL TIFFANY CITIZEN GUCCI LOUIS VUITTON BREITLING BURBERRY COACH IWC agnes.b. DIOR Total(n=1500) Male(n=750) Female(n=750) ROLEX OMEGA CARTIER BVLGARI SEIKO FRANCK MULLER TAG HEUER CASIO HERMES CITIZEN CHANEL TIFFANY GUCCI BREITLING LOUIS VUITTON HARRY WINSTON BURBERRY HAMILTON agnes.b. AUDEMARS PIGUET Total(n=1500) Male(n=750) Female(n=750) E49

8 Review:3 Media which are influential in purchasing Internet has grown an essential tool in the purchase process The Internet and makers or brands homepages are most frequently used. Informational website overtook Product display at the, ranked 2nd in the previous survey. The survey has proved again that Internet (online ) has grown an essential tool in the purchase process. Meanwhile, there is still a high dependency on Product display at the and Magazine articles. Hence, distributors are expected to deploy advertising and promotional strategies based on a set of well-balanced tangible and intangible sources. Combining real information such as that obtained at the in a composite manner, in addition to using information obtained from others through community/message boards and information disseminated from brands, is becoming the mainstream of purchasing. Location of actual purchase Bricks-and-motor s remain the mainstream. Internet use (online ) is driven by consumers in their 30s and 40s Watch section at a department remains at the top spot in Store that you often use when purchasing a watch for both male and female, with female users driving the overall demand. Mass retailer; discount is the most popular for male consumers while Duty free ; overseas is the most popular for female consumers. Male consumers tend to regard watch as an ordinary ping item while it is a special ping item for female consumers: the tendency characteristically shows the difference in consumer awareness between male and female consumers. Watch section at a department, Watch and clock specialty ; jewelry and Mass retailer; discount, top-ranking spots, are declining in popularity. Meanwhile, the use of the Internet (online ), ranked 4th, is on the increase, strengthening its presence as location of actual purchase. Watch section at a department is the most popular among respondents in their 20s while Internet (online ) is popular among consumers mainly in their 30s and 40s, and they are also attracting an increasing number of consumers in their 50s. The Internet or the makers or brands homepages Informational website Product display at the Magazine articles Online community, message boards Magazine ads Recommendation by sales representative Fairs held at department s and watch s Word-of-mouth communication with friends, acquaintances, family, etc. TV commercials TV programs Newspaper articles Newspaper ads Ad inserts Movies (DVD) Ads or billboards on the street Ads on public transportation (posters in stations, stickers on trains and etc.) Free papers; free magazines Radio programs Radio commercials Other New choices in the 2012 survey 2014 Watch section at a departme nt Watch and clock specialty ; jew elry Mass retailer; discount Online Duty free ; overseas Brand boutique Select Mail-order Parallel import Used clock Antique Personto-person trade 2014Total(n=1500) Male(n=750) Female(n=750) Total(n=894) 2012Total(n=881) 2014Total(n=907) Others

9 Review:4 Favorite manufacturing country for your watch Japan and Swiss stand out as the two most popular watch-producing countries The popularity rates for Made in Japan (36.2%) and Made in Swiss (35.0%), the two most popular producers, were almost equal, followed far below by Made in Germany (2.3%) and Made in U.S.A. (1.1%). Swiss watches were popular among male and Japanese watches are favored by female. Swiss watches were preferred by consumers in higher age groups (in their 40s and 50s). Made in Japan Made in Swiss Made in Germany Made in U.S.A. Others Not interested in country of origin (Not aware of) Image for a watch of Swiss made Luxurious + Brand power + Craftsmanship The top images were Luxury (57.5%), Have a long history (49.3%) and Strong brand power (46.9%) Craftsmanship of mechanical watches ranked 3rd among male, showing that male consumers identify Swiss watches with Craftsmanship of mechanical watches. Craftsmanship, meticulous work was more common image among female respondents than male respondents, showing that craftsmanship manufacturing is the image of Swiss watches among female. Awareness of Switzerland being a kingdom of watch The image of Swiss as watch kingdom has penetrated To the question Did you know that Swiss is the watch kingdom?, 77.9% of respondents said I knew it. and 22.1% said I didn t know. It turned out that the recognition rate of Swiss as the watch kingdom was high at about 80%. Luxury Have a long history Strong brand power Craftsmanship, meticulous work Craftsmanship of mechanical watches Beautiful design, high designability Nothing in particular Total(n=1500) Male(n=750) Female(n=750) 5.2 E238 The recognition rate increases proportionately to age both for male and female consumers. In particular, the recognition rate is very high among male and female consumers in their 40s and 50s. On the other hand, low recognition rate is observed in the younger age group. In particular, more than half of the female consumers in their 20s didn t know Swiss is the watch kingdom. 9 I know it I don t know

10 Screening survey: Sample size of 10,018 10

11 Screening survey (extracting survey subjects) We extracted those who chose (3) watch as the answer for question: Have you purchased any of the following products*? (MA). * * (1) necktie, (2) bag (3) watch, (4) jewelry, (5) personal computer, (6) organizer, (7) camera, (8) I have never bought any of the above Total(n=10018) Necktie Bag Those who have bought a watch: 6,065 Watch 60.5 Jewelry 26.1 Personal Computer Organizer Camera Furthermore I have never bought any of the above. 8.2 We have selected as survey subjects those who answered Interested or Somewhat interested to question SA: Are you interested in a watch costing over 100,000 yen? 2014 Those who are not interested in a watch costing over 100,000 yen (Non-subjects) 53.8% Those who are interested in a watch costing over 100,000 yen (Subjects) 35.1% 11

12 Survey Results 1: Subjects Profile (sample size of 1,500) 12

13 Subjects Profile (basic attributes) Sex and age distribution Occupational distribution % % % % Geographical distribution Chugoku,Shik oku and Kyushiu 14.9% Kansai 18.8% 2014Total(n=1500) % % % Total Male Female 6.9% Total(n=1500) % Hokkaido and Tohoku 8.9% % % n=1500 n=750 n= E16 Total Male Female n=1500 n=750 n=750 Company employee Government employee Company executive Self-owned business Freelance Part-time employee Homemaker Student Unemployed Others E19 Marital status Total Male Female n=1500 n=750 n=750 Single Married E20 Family structure Total Male Female n=1500 n=750 n=750 Spouse Children Parents Siblings Others Living alone E21 Chubu and Hokuriku 10.9% Kanto and Koshinetsu 46.5% 13

14 Household annual income (all) 4.7% 8.9% 2014Total(n=1500) 11.1% 11.7% Less than 3 million yen 1.1% 0.6% 3-5 million yen 3.0% 5-6 million yen 13.2% 8.9% 11.1% 7.2% 18.5% 6-7 million yen 7-8 million yen 8-10 million yen million yen million yen million yen million yen 30 million yen or more unknown Household annual income (male) Total male Male 20s Male 30s Male 40s Male 50s n=750 n=133 n=188 n=207 n=222 Less than 3 million yen million yen million yen million yen million yen million yen million yen million yen million yen million yen million yen or more unknown Household annual income (female) Total Female Female 20s Female 30s Female 40s Female 50s n=750 n=217 n=177 n=183 n=173 Less than 3 million yen million yen million yen million yen million yen million yen million yen million yen million yen million yen million yen or more unknown E27 * Total average: 6,568,000 yen; male average: 6,841,000 yen; female average: 6,296,000 yen * Average by sex and age group (males) Males in their 20s: 5,233,000 yen; Males in their 30s: 5,836,000 yen; Males in their 40s: 7,676,000 yen; Males aged 50+: 7,973,000 yen * Average by sex and age group (females) Females in their 20s: 5,395,000 yen; Females in their 30s: 5,320,000 yen; Females in their 40s: 6,191,000 yen; Females aged 50+: 8,492,000 yen 14

15 Allowance (monthly: all) 2014Total(n=1500) 7.7% 1.0% 1.0% 1.4% 4.1% 14.8% Less than 10,000 yen 10,000 30,000 yen 30,000 50,000 yen 12.1% 50,000 70,000 yen 70, ,000 yen 100, ,000 yen 32.6% 150, ,000 yen 25.3% 200, ,000 yen 300,000+ yen Allowance (monthly: male) Total male Male 20s Male 30s Male 40s Male 50s n=750 n=133 n=188 n=207 n=222 Less than 10,000 yen ,000 30,000 yen ,000 50,000 yen ,000 70,000 yen , ,000 yen , ,000 yen , ,000 yen , ,000 yen ,000+ yen Allowance (monthly: female) Total Female Female 20s Female 30s Female 40s Female 50s n=750 n=217 n=177 n=183 n=173 Less than 10,000 yen ,000 30,000 yen ,000 50,000 yen ,000 70,000 yen , ,000 yen , ,000 yen , ,000 yen , ,000 yen ,000+ yen E29 * Total average: 47,800 yen; Male average: 52,000 yen; Female average: 43,000 yen * Average by sex and age (males) Males in their 20s: 45,000 yen; Males in their 30s: 56,000 yen; Males in their 40s: 53,000 yen; Males aged 50+: 54,000 yen * Average by sex and age (females) Females in their 20s: 38,000 yen; Females in their 30s: 40,000 yen; Females in their 40s: 36,000 yen; Females aged 50+: 59,000 yen * Nearly 70% of the entire respondents have allowance of 50,000 yen or less. Males, as they get older, have more money that they can spend freely. In particular, the percentage of respondents who have allowance of 50,000 yen or more increased among males in their 30s. Females generally have more money to spend freely than they had in 2012 in all age groups due in part to the effects of companies momentum to actively promote women to the managerial position. 15

16 What to spend allowance on (monthly: all) 2014 What to spend allowance on (monthly: male) 2014 What to spend allowance on (monthly: female) 2014 Entertainment (including dining) Entertainment (including dining) Entertainment (including dining) Clothing and personal items (including watches) Clothing and personal items (including watches) Clothing and personal items (including watches) Hobbies Hobbies Hobbies Recreation (leisure activities, traveling, gambling, etc.) Recreation (leisure activities, traveling, gambling, etc.) Recreation (leisure activities, traveling, gambling, etc.) Mobile and Internet connection Savings Stocks and investments School/lesson for skill/hobby Female(n=750) Female 20s(n=217) Female 30s(n=177) Female 40s(n=183) Female 50s+(n=173) E32 * Clothing and personal items (including watches) was the most popular use of allowance of female subjects and females in all age groups showed strong willingness to spend. The ratio of Mobile and Internet connection Mobile and Internet connection Savings Stocks and investments School/lesson for skill/hobby Male(n=750) Male 20s(n=133) Male 30s(n=188) Male 40s(n=207) Male 50s+(n=222) Savings Stocks and investments School/lesson for skill/hobby Total(n=1500) Male(n=750) Female(n=750) male subjects who chose Clothing and personal items (including watches) was lower than that of female. Compared with the result in the previous survey in 2012, Clothing and personal items (including watches) overtook Recreation and moved up in the rankings to the 3rd place after Entertainment and Hobbies. *While a large percentage of males and females in their 20s and 30s gave Savings as their answer reflecting the severe economic environment, Stocks and investments became more popular due to the impact of Abenomics, implemented under the Abe government from late 2012, overtaking School/lesson for skill/hobby among the overall subjects compared with the result in the previous survey in In particular, Stocks and investments is especially popular among male in their 20s and 30s compared with respondents in other age groups. 16 Others Others Others E30 E31

17 Survey Results 2: Main Survey (sample size of 1,500) 17

18 Number of watches owned (all) 14.1% 2010Total(n=1500) 4.6% 2.8% 17.2% 11.2% 2012Total(n=1500) 3.7% 2.1% 21.3% 11.7% 2.9% 4.1% 2014Total(n=1500) 23.3% % 22.7% Number of watches owned (male) 29.3% 8.7% 23.3% Total male Male 20s Male 30s Male 40s Male 50s n=750 n=750 n=750 n=180 n=144 n=133 n=172 n=216 n=188 n=219 n=207 n=207 n=179 n=183 n= % 9.0% 21.3% 27.7% The ratio of people who own two or more E33 watches: Down 2.0 points Number of watches owned (female) Total Female Female 20s Female 30s Female 40s Female 50s n=750 n=750 n=750 n=170 n=224 n=217 n=189 n=196 n=177 n=209 n=175 n=183 n=182 n=155 n= E34 * In 2014, the ratio of people who own two or more watches to all respondents declined 2.0 points from * However, the ratio of people who own five or six watches increased by 1.9 points to 20.3% among males and by1.8 points to 17.2% among females compared with 2012, indicating an growth in the overall proportion of heavy watch users. 18

19 Brand of watch owned (ranking comparison ) Order Brand n=1500 Order Brand n=1500 Order Brand n= SEIKO 33.9 To 2nd Place 1 CASIO CASIO CASIO 30.6 To 1st Place 2 SEIKO SEIKO CITIZEN CITIZEN CITIZEN SWATCH 18.3 To 6th Place 4 OMEGA OMEGA OMEGA 18.1 To 4th Place 5 ROLEX ROLEX ROLEX 16.4 To 5th Place 6 SWATCH SWATCH GUCCI 10.1 To 8th Place 7 CARTIER 8.4 To10th Place 7 GUCCI TAG HEUER 9.5 To 9th Place 8 GUCCI 7.6 To 7th Place 8 BVLGARI CARTIER 8.9 To 7th Place 8 TAG HEUER TAG HEUER BVLGARI 8.1 To11th Place 10 agnes.b. 6.4 To12th Place 10 CARTIER HERMES 7.6 To12th Place 11 BVLGARI 6.3 To 8th Place 11 HERMES agnes.b. 7.1 To10th Place 11 HERMES agnes.b FOLLI FOLLIE 4.6 To14th Place 13 LONGINES 4.7 To14th Place 13 FOLLI FOLLIE LONGINES 3.9 To13th Place 14 FOLLI FOLLIE 3.6 To13th Place 14 CHANEL DIOR 3.1 Ranked out 15 CHANEL 3.2 To14th Place 14 LONGINES ck CALVIN KLEIN 2.9 To 23rd Place 16 DIESEL 2.7 To17th Place 16 HAMILTON COACH 2.9 To24th Place 16 Paul Smith 2.7 To 21st Place 17 DIESEL TIFFANY 2.8 To27th Place 18 BURBERRY BURBERRY BURBERRY HAMILTON 2.3 To16th Place 18 COACH RADO 2.6 To 21st Place 20 RADO 2.2 Ranked out 20 FENDI DUNHILL 2.5 Ranked out 21 BREITLING 2.1 Ranked out 21 EMPORIO ARMANI CHANEL 2.4 To15th Place 21 ck CALVIN KLEIN 2.1 To26th Place 21 IWC HAMILTON 2.3 To20th Place 21 COACH 2.1 To18th Place 21 Paul Smith BREITLING 2.1 To22th Place 24 FRANCK MULLER Fossil 2.0 * New brand 25 FRANCK MULLER NIXON 1.7 To26th Place 24 FRANCK MULLER LOUIS VUITTON 1.9 Ranked out 24 TIFFANY 1.7 Ranked out 26 ck CALVIN KLEIN 1.9 Ranked out 26 NIXON 1.9 E39 * The lineup of top-ranked brands through 6th was unchanged. In addition to the domestic watch brands, OMEGA, ROLEX and SWATCH maintained high percentage of ownership. * GUCCI, BVLGARI, FOLLI FOLLIE, CHANEL, HAMILTON and COACH moved up in the rankings. * Fossil, which was newly added in this survey, ranked 24th in the rankings. 19

20 Brand of watch owned (by sex) SEIKO CASIO CITIZEN SWATCH OMEGA ROLEX GUCCI TAG HEUER CARTIER BVLGARI HERMES agnes.b. FOLLI FOLLIE LONGINES DIOR ck CALVIN KLEIN COACH TIFFANY BURBERRY RADO DUNHILL Total(n=1500) Male(n=750) Female(n=750) CASIO SEIKO CITIZEN OMEGA ROLEX SWATCH CASIO SEIKO CITIZEN OMEGA ROLEX SWATCH CARTIER GUCCI GUCCI BVLGARI TAG HEUER TAG HEUER agnes.b. BVLGARI CARTIER HERMES HERMES agnes.b. LONGINES FOLLI FOLLIE CHANEL DIESEL Paul Smith FOLLI FOLLIE CHANEL LONGINES HAMILTON DIESEL 2.3 BURBERRY BURBERRY Total(n=1500) HAMILTON Male(n=750) COACH RADO Female(n=750) FENDI Total(n=1500) Male(n=750) Female(n=750) 3.7 E40 * In 2014, the top 3 brands remained the domestic watch brands of CASIO, SEIKO and CITIZEN as in the previous survey. * Survey results reveal that CASIO, SEIKO and CITIZEN are more popular than foreign brands among male consumers. CITIZEN had been owned by both males and females almost evenly in the previous survey in 2012, but the percentage of male owners exceeded that of female owners in 2014 as a result probably of appointment of brand ambassador who is popular among male. * In 2014, among the top-ranking brands, the response rate of female decreased for SWATCH and that of male increased for GUCCI and BVLGARI. Brands that showed a clear difference in proportions between males and females were watch maker brands favored by males, e.g. CASIO, SEIKO, OMEGA and TAG HEUER and fashion brands popular among female pers, e.g. CARTIER, GUCCI, agnes.b, BVLGARI, HERMES, FOLLI FOLLIE and CHANEL. 20

21 Brand of watch owned (by sex and age group): Supplementary data Total Male Male 20s Male 30s Male 40s Male 50s+ Fem ale Female 20s Female 30s Female 40s Female 50s+ Total Male Male 20s Male 30s Male 40s Male 50s+ Fem ale Female 20s Female 30s Female 40s Female 50s+ Total Male Male 20s Male 30s Male 40s Male 50s+ Fem ale Female 20s Female 30s Female 40s Female 50s n=1500 n=750 n=180 n=172 n=219 n=179 n=750 n=170 n=189 n=209 n=182 SEIKO CASIO CITIZEN SWATCH OMEGA ROLEX GUCCI TAG HEUER CARTIER BVLGARI HERMES agnes.b FOLLI FOLLIE LONGINES DIOR ck CALVIN KLEIN COACH TIFFANY BURBERRY RADO DUNHILL n=1500 n=750 n=144 n=216 n=207 n=183 n=750 n=224 n=196 n=175 n=155 CASIO SEIKO CITIZEN OMEGA ROLEX SWATCH CARTIER GUCCI TAG HEUER agnes.b BVLGARI HERMES LONGINES FOLLI FOLLIE CHANEL DIESEL Paul Smith BURBERRY HAMILTON RADO n=1500 n=750 n=133 n=188 n=207 n=222 n=750 n=217 n=177 n=183 n=173 CASIO SEIKO CITIZEN OMEGA ROLEX SWATCH GUCCI BVLGARI TAG HEUER CARTIER HERMES agnes.b FOLLI FOLLIE CHANEL LONGINES HAMILTON DIESEL BURBERRY COACH FENDI E41 21

22 Purchase price of watch owned (all) * The list was created based on the purchase price of favorite watch out of all watches owned. 2010Total(n=1370) 2012Total(n=1324) 2014Total(n=1269) 6.6% 2.3% 11.5% 11.2% 9.6% 11.0% 4.8% 17.5% 12.8% 12.6% 5.1% 8.5% 1.5% 11.1% 10.0% 8.4% 12.1% 11.0% 19.8% 12.7% 3.9% 7.8% 3.8% Less than 10,000 yen 16.2% 10,000 30,000 yen 30,000 50,000 yen 11.0% 50, ,000 yen 8.9% 7.0% 14.2% 100, ,000 yen 150, ,000 yen 200, ,000 yen 300, ,000 yen 12.8% 14.3% 500,000 1,000,000 yen 1,000,000+yen Purchase price of watch owned (male) Purchase price of watch owned (female) Response rates E43 of 30, ,000 increased Total male Male 20s Male 30s Male 40s Male 50s n=691 n=673 n=643 n=161 n=120 n=106 n=154 n=197 n=153 n=205 n=187 n=179 n=171 n=169 n=205 Less than 10,000 yen ,000 30,000 yen ,000 50,000 yen , ,000 yen , ,000 yen , ,000 yen , ,000 yen , ,000 yen ,000 1,000,000 yen ,000,000+yen Total Female Female 20s Female 30s Female 40s Female 50s n=679 n=651 n=626 n=149 n=180 n=155 n=171 n=170 n=149 n=190 n=156 n=167 n=169 n=145 n=155 Less than 10,000 yen ,000 30,000 yen ,000 50,000 yen , ,000 yen , ,000 yen , ,000 yen , ,000 yen , ,000 yen ,000 1,000,000 yen ,000,000+yen E44 * 10,000 30,000 yen remained the most popular answer for the purchase price of the favorite watch owned but dropped 3.6 points from On the other hand, the response rate for 30,000 50,000 yen was up 1.5 points, that for 50, ,000 yen was up 2.2 points and that for 100, ,000 yen was up 1.8 points. As a result, response rates of 30, ,000 yen increased, indicating a shift from low price range to medium price range. The purchase price of the favorite watch owned is on an upward trend. * The volume zone of responses was 10, ,000 yen with a concentration in 10,000 30,000 yen for both males and females. Response rates for 100,000+ yen increased in proportion to age for both males and females. This price range was chosen by approximately half of males in their 30s and 40s and of females in their 30s, and about 60% of males aged 50+ and females in their 40s and 50+. * Response rates for 1,000,000+ yen increased in almost all age groups, showing that luxury watches are very popular regardless of age. The survey revealed the apparent preference for authentic goods among younger people in recent years. 22

23 Location of purchase (all) 2010 Female(n=750) New choices in the 2014 survey 2012 Female(n=750) New choices in the 2014 survey 2014 Watch section at a department Watch section at a department Watch section at a department Watch and clock specialty ; jew elry Watch and clock specialty ; jew elry Watch and clock specialty ; jew elry Mass retailer; discount Mass retailer; discount Mass retailer; discount Online Online Online Duty free ; overseas Duty free ; overseas Duty free ; overseas Brand boutique Brand boutique Brand boutique Select Mail-order Parallel import () Used clock () Antique Person-toperson trade Total(n=1500) Male(n=750) Female(n=750) New choices in the 2014 survey Select Mail-order Parallel import () Used clock () Antique Person-toperson trade Total(n=1500) Male(n=750) Select Mail-order Parallel import () Used clock () Antique Person-toperson trade Total(n=1500) Male(n=750) * Watch section at a department remained the most popular response in the 2014 survey, especially with a high purchase rate among female pers. * For male consumers, Watch section at a department was the most popular, followed by Watch and clock specialty ; jewelry, Mass retailer; discount and Online. Females most preferred Watch section at a department, followed by Watch and clock specialty ; jewelry, Duty free ; overseas, Online and Brand boutique. * While rates of respondents for Watch section at a department, Watch and clock specialty ; jewelry and Mass retailer, discount has been declining year by year, the rate of respondents for Online, ranked 4th, was on the rise to indicate the growth in its presence as location of purchase. 23 Others Others Others

24 Location of purchase (male) 2010 Male 50s+(n=179) New choices in the 2014 survey 2012 Male 50s+(n=183) New choices in the 2014 survey 2014 Watch section at a department Watch section at a department Watch section at a department Watch and clock specialty ; jew elry Watch and clock specialty ; jew elry Watch and clock specialty ; jew elry Mass retailer; discount Mass retailer; discount Mass retailer; discount Online Online Online Duty free ; overseas Duty free ; overseas Duty free ; overseas * Watch section at a department was the most popular among respondents in their 20s. Response rates of people in their 20s are high also for Brand boutique, Select and Mail-order, revealing that respondents in this age group use more varied sales channels than respondents in other age groups. * While Online s is used primarily by survey samples in their 30s and 40s, they are also attracting an increasing number of those aged Brand boutique Brand boutique Select Mail-order Parallel import () Used clock () Antique Person-toperson trade Male(n=750) Male 20s(n=133) Male 30s(n=188) Male 40s(n=207) Male 50s+(n=222) New choices in the 2014 survey Brand boutique Select Mail-order Parallel import () Used clock () Antique Person-toperson trade Male(n=750) Male 20s(n=144) Male 30s(n=216) Male 40s(n=207) Select Mail-order Parallel import () Used clock () Antique Person-toperson trade Male(n=750) Male 20s(n=180) Male 30s(n=172) Male 40s(n=219) Others Others Others

25 Location of purchase (female) 2010 Female 50s+(n=182) New choices in the 2014 survey 2012 Female 50s+(n=155) New choices in the 2014 survey 2014 Watch section at a department Watch section at a department Watch section at a department Watch and clock specialty ; jew elry Watch and clock specialty ; jew elry Watch and clock specialty ; jew elry Mass retailer; discount Mass retailer; discount Mass retailer; discount Online Online Online Duty free ; overseas Duty free ; overseas Duty free ; overseas Brand boutique Brand boutique Brand boutique Select Mail-order Parallel import () Used clock () Antique Person-toperson trade Female(n=750) Female 20s(n=217) Female 30s(n=177) Female 40s(n=183) Female 50s+(n=173) New choices in the 2014 survey Select Mail-order Parallel import () Used clock () Antique Person-toperson trade Female(n=750) Female 20s(n=224) Female 30s(n=196) Female 40s(n=175) Select Mail-order Parallel import () Used clock () Antique Person-toperson trade Female(n=750) Female 20s(n=170) Female 30s(n=189) Female 40s(n=209) * Watch section at a department was a popular choice across all female age groups and preferred particularly by females in their 20s and 30s. * While response rates were low for Mass retailer; discount among respondents in their 20s and 30s, those for Brand boutique and Select were higher than respondents in other age groups. * Online expanded primarily among females in their 50s, and grew also among females in their 30s and 40s. 25 Others Others Others

26 Willingness to purchase watches online (all) *We asked those who have not purchased watches online about their willingness to purchase online in the future. I want to buy a watch online. It is not a strong preference but I would rather buy a watch online. I have no hesitance or problem with buying a watch online. I have no preference. It is not a strong preference but I would rather buy a watch at a bricks-and-mortar. I want to buy a watch at a bricks-and-mortar. Willingness to purchase watches online (male) Total(n=1191) Total(n=1175) 34.8 E82 Total male Male 20s Male 30s Male 40s Male 50s n=550 n=538 n=107 n=106 n=153 n=135 n=149 n=135 n=141 n=162 I want to buy a watch online It is not a strong preference but I would rather buy a watch online I have no hesitance or problem with buying a watch online I have no preference It is not a strong preference but I would rather buy a watch at a bricks-and-mortar I want to buy a watch at a bricks-and-mortar Willingness to purchase watches online (female) Total female female 20s female 30s female 40s female 50s n=641 n=637 n=200 n=189 n=161 n=151 n=148 n=154 n=132 n=143 I want to buy a watch online It is not a strong preference but I would rather buy a watch online I have no hesitance or problem with buying a watch online I have no preference It is not a strong preference but I would rather buy a watch at a bricks-and-mortar I want to buy a watch at a bricks-and-mortar E83 * In 2014, the majority of survey samples preferred to at bricks-and-mortar s. Those who responded, It is not a strong preference but I would rather buy a watch at a bricks-and-mortar and I want to buy a watch at a bricks-and-mortar accounted for 68.9% of the total, up 2.9 points from the previous survey in The result revealed a stronger willingness of survey samples to purchase watches at bricks-and-mortar s than in the 2012 survey. * Meanwhile, survey samples who have no hesitance or problem in buying a watch online accounted for approximately 20% of the total. This suggests that the Internet can serve as a sales channel depending on how products are distributed and consumers are attracted. It looks like the important point to promote purchase of watches online is to provide added value available only through online. 26

27 Important factors in choosing a retailer Handles authorized imports Cheaper than other s Wide assortment of goods Good after-sale service Atmosphere of the Well-known Others No preference 2010: Total 2012: Total 2014: Total Important factors in choosing a retailer (male) Important factors in choosing a retailer (female) Total male Male 20s Male 30s Male 40s Male 50s n=750 n=133 n=188 n=207 n=222 Handles authorized imports Cheaper than other s Wide assortment of goods Good after-sale service Atmosphere of the Well-known Others No preference Total Female Female 20s Female 30s Female 40s Female 50s n=750 n=217 n=177 n=183 n=173 Handles authorized imports Cheaper than other s Wide assortment of goods Good after-sale service Atmosphere of the Well-known Others No preference E89 Handles authorized imports was the most popular response among both men and women, indicating that both males and females are seeking safety in choosing a retailer. * Male consumers tend to value price more than females, and the higher the age of respondents is, the more demanding they are about price. * Among females, the tendency to emphasize Wide assortment of goods and Good after-sale service was stronger than in males, which indicates that elements other than the product itself are also important for female pers, especially those in their 40+, in selecting s. 27