WATCHES AND CLOCKS

SUMMARY

Analyzes historical, current, and projected sales trends (to 2011) in the markets for all types of watches, watchcases, residential and nonresidential clocks, timing mechanisms and switches, movements, watch and clock parts, and more. Special attention is devoted to import penetration into the U.S. market. Other topics covered include consumer demographics, export activity, pricing trends, new product introductions, marketing strategies, industry cost structure and economics, and recent activities of the major manufacturers.

TABLE OF CONTENTS

SECTION I: EXECUTIVE OVERVIEW

Analysis:

Definition of the Market 1

U.S. Manufacturers'  Sales 1

Prices 2

Foreign Trade 2

Media Expenditures 3

SECTION II: THE U.S. MARKET FOR WATCHES AND CLOCKS

Analysis:

Balance of Trade 4

U.S. Apparent Consumption 4

U.S. Manufacturers'  Sales 5

Product Mix 5

Tables:

Balance of Trade in the Watches and Clocks Industry 7

U.S. Apparent Consumption of Watches and Clocks 8

Imports as a Percentage of U.S. Apparent Consumption of Watches and Clocks 9

Exports as a Percentage of U.S. Manufacturers'  Sales of Watches and Clocks 10

U.S. Manufacturers'  Sales of Watches and Clocks (Graph) 11

U.S. Manufacturers'  Sales of Watches and Clocks 12

U.S. Manufacturers'  Sales of Watches and Clocks, by Type 13

Product Mix of U.S. Manufacturers'  Sales of Watches and Clocks 14

Growth Trends in U.S. Manufacturers'  Sales of Watches and Clocks 15

SECTION III: THE U.S. MARKET FOR WATCHES

Analysis:

Market Segmentation 16

World Watch Production 17

The Japanese Watch Market 17

U.S. Apparent Consumption 17

U.S. Manufacturers'  Sales 18

Complete Watches 18

Parts 19

Consumer Spending 19

The Retail Market 20

Tables:

World Watch Production (Graph) 21

World Watch Production 22

World Watch Production, by Type (Graph) 23

World Watch Production, by Type 24

Japanese Watch Production, by Type (Graph) 25

Japanese Watch Production, by Type 26

U.S. Apparent Consumption of Watches 27

Imports as a Percentage of U.S. Apparent Consumption of Watches 28

Exports as a Percentage of U.S. Manufacturers'  Sales of Watches 29

U.S. Manufacturers'  Sales of Watches (Graph) 30

U.S. Manufacturers'  Sales of Watches 31

U.S. Manufacturers'  Sales of Watches, by Type 32

Product Mix of U.S. Manufacturers'  Sales of Watches 33

Growth Trends in U.S. Manufacturers'  Sales of Watches, by Type 34

U.S. Manufacturers'  Sales of Complete Watches, by Type 35

Product Mix of U.S. Manufacturers'  Sales of Complete Watches 36

Average Annual Consumer Expenditures on Watches:

By Housing Tenure and Type of Area 37

By Race and Hispanic Origin 38

By Region 39

By Age of Householder 40

By Income Level 41

Retail Jewelry Store Monthly Sales 42

Distribution of Jewelry and Watch Sales, by Type of Outlet (Graph) 43

Distribution of Jewelry and Watch Sales, by Type of Outlet 44

Distribution of Retail Watch Sales, by Price Point (Graph) 45

Distribution of Retail Watch Sales, by Price Point 46

Distribution of Retail Watch Sales, by Type (Graph) 47

Distribution of Retail Watch Sales, by Type 48

SECTION IV: THE U.S. MARKET FOR CLOCKS

Analysis:

World Clock Production 49

U.S. Apparent Consumption 49

U.S. Manufacturers'  Sales 50

Household Clocks 50

Wall Clocks 51

Alarm Clocks 52

Timing Mechanisms 52

Parts 53

Consumer Spending 53

New Product Trends 54

SECTION IV: THE U.S. MARKET FOR CLOCKS (cont' d.)

Tables:

World Clock Production (Graph) 55

World Clock Production 56

U.S. Apparent Consumption of Clocks 57

Imports as a Percentage of U.S. Apparent Consumption of Clocks 58

Exports as a Percentage of U.S. Manufacturers'  Sales of Clocks 59

U.S. Manufacturers'  Sales of Clocks (Graph) 60

U.S. Manufacturers'  Sales of Clocks 61

U.S. Manufacturers'  Sales of Clocks, by Type 62

Product Mix of U.S. Manufacturers'  Sales of Clocks 64

Growth Trends in U.S. Manufacturers'  Sales of Clocks, by Type 65

Manufacturers'  Shipments of Desk/Table Clocks 66

Manufacturers'  Shipments of Decorative Wall Clocks 67

Manufacturers'  Shipments of Kitchen Wall Clocks 68

Manufacturers'  Shipments of Alarm Clocks 69

Saturation Level for Clocks in the U.S. 70

Average Annual Consumer Expenditures on Clocks:

By Housing Tenure and Type of Area 70

By Race and Hispanic Origin 72

By Region 73

By Age of Householder 74

By Income Level 75

SECTION V: FACTORS AFFECTING DEMAND IN THE WATCHES AND CLOCKS INDUSTRY

Analysis:

Overview 76

The U.S. Economy 76

Household Income 77

Population Trends 78

Changing Lifestyles 79

Construction Activity and Housing Purchases 79

Clock-Related Household Electronics 80

Tables:

U.S. Gross Domestic Product 81

U.S. Disposable Personal Income 82

U.S. Per Capita Disposable Personal Income 83

U.S. Personal Consumption Expenditures 84

U.S. Per Capita Personal Consumption Expenditures 85

Consumer Confidence Index 86

U.S. Household Distribution, by Income Level 87

Median Household Income, by State 88

Civilian Labor Force in the U.S., by Gender 90

U.S. Resident Population Trends and Projections 91

U.S. Population Trends and Projections, by Age Group 92

Age Distribution of the U.S. Population 93

U.S. Population and Household Trends and Projections 94

U.S. Resident Population Projections, by Region 95

U.S. Resident Population Projections, by State 96

Distribution of the U.S. Population, by State 98

World Motor Vehicle Production 100

U.S. Motor Vehicle Production 101

U.S. Motor Vehicle Production, by Type 102

Single-Family Houses Sold in the U.S. 103

Single-Family Houses Sold in the U.S., by Region 104

Number of Mobile Homes Placed for Residential Use 106

Number of Mobile Homes Placed for Residential Use, by Region 107

Distribution of Mobile Homes Placed for Residential Use, by Region 108

Value of Total New Construction in the U.S. 109

Value of New Construction, by Type 110

Value of New Private Construction, by Type 111

Value of New Private Residential Building Construction, by Type 112

Value of New Private Nonresidential Building Construction, by Type 113

Value of New Public Construction, by Type 115

Value of New Public Building Construction, by Type 117

Manufacturers'  Shipments of Microwave Ovens 119

Saturation Level for Microwave Ovens in the U.S. 120

Manufacturers'  Shipments of Oven Ranges 121

SECTION VI: PRICING TRENDS IN THE U.S. WATCHES AND CLOCKS INDUSTRY

Analysis:

Overall Producer Price Trends 122

Producer Prices for Watches and Related Products 122

Producer Prices for Clocks and Related Products 123

Producer Prices for Household Clocks 123

Producer Prices for Household Timing Mechanisms, Timers, and Switch

Clocks 124

Consumer Prices for Watches 124

Consumer Prices for Clocks 125

Tables:

Producer Price Indexes:

Watches, Clocks, Watchcases, and Parts 126

Watches, Watchcases, Movements or Modules, and Watch Parts 127

Clocks, Timing Mechanisms, Time Switches, Clock Movements,

Clockcases, and Clock Parts 128

Household Clocks 129

Household Clocks, by Type 130

Household Timing Mechanisms 131

Timers and Switch Clocks 132

Clockcases, Case Parts, and Other Clock Parts 133

Consumer Price Indexes:

Watches 134

Clocks, Lamps, and Decorative Items 135

SECTION VII: U.S. EXPORTS OF WATCHES AND CLOCKS

Analysis:

Overview 136

Top U.S. Export Destinations 136

U.S. Exports of Watches 137

U.S. Exports of Clocks 138

Tables:

U.S. Exports of Watches and Clocks 139

Top 25 U.S. Export Destinations for Watches and Clocks 140

Dollar Market Shares of the Top 25 U.S. Export Destinations for Watches

and Clocks 141

Leading U.S. Export Destinations for Watches and Clocks (Graph) 142

U.S. Exports:

Watches and Clocks, by Type 143

Watches, by Type 144

Distribution of Watch Exports, by Type 145

Battery-Powered Wristwatches with Cases of Precious Metal:

Mechanical Displays 146

Electronic Displays 147

Other Displays 148

Other Battery-Powered Watches with Cases of Precious Metal 149

Automatically Wound Wristwatches with Cases of Precious Metal 150

Not Automatically Wound Wristwatches with Cases of Precious Metal 151

Other Nonbattery-Powered Watches with Cases of Precious Metal 152

Battery-Powered Wristwatches:

Mechanical Displays 153

Electronic Displays 154

Other Displays 155

Other Battery-Powered Watches 156

Automatically Wound Wristwatches 157

Not Automatically Wound Wristwatches 158

Other Nonbattery-Powered Watches 159

Complete and Assembled Watch Movements for Battery-Powered  Watches:

Mechanical Displays 160

Electronic Displays 161

Complete and Assembled Watch Movements for:

Other Battery-Powered Watches 162

Automatically Wound Watches 163

Other Nonbattery-Powered Watches:

Measuring 33.8mm or Less 164

Measuring Over 33.8mm 165

Complete Watch Movements, Partly Assembled or Unassembled 166

Incomplete Watch Movements, Assembled 167

Rough Watch Movements 168

Watchcases and Parts Thereof:

Precious Metal 169

Base Metal 170

Other Watchcases 171

Parts of Watchcases 172

Watch Straps, Bands, and Bracelets, and Parts Thereof:

Precious Metal 173

Base Metal 174

Other 175

Springs for Watches and Clocks 176

Jewels for Watches and Clocks 177

Dials for Watches and Clocks 178

Plates and Bridges for Watches and Clocks 179

Other Parts for Watches and Clocks 180

Clocks, by Type 181

Distribution of Clock Exports, by Type 182

Alarm Clocks:

Electric-Powered 183

Nonelectric-Powered 184

Wall Clocks:

Electric-Powered 185

Nonelectric-Powered 186

Electric-Powered Clocks with Watch Movements 187

Instrument Panel Clocks 188

Other Electric-Powered Clocks 189

Nonelectric-Powered Clocks with Watch Movements 190

Other Nonelectric-Powered Clocks 191

Complete and Assembled Clock Movements for:

Electric-Powered Alarm Clocks 192

Other Electric-Powered Clocks 193

Other Complete and Assembled Clock Movements 194

Complete and Incomplete Clock Movements and Rough Clock Movements 195

Clockcases of Metal and Parts Thereof 196

Other Clockcases and Parts Thereof 197

Parts of Clockcases 198

SECTION VIII: U.S. IMPORTS OF WATCHES AND CLOCKS

Analysis:

Overview 199

Switzerland is Number One 199

The Pacific Rim 200

Other Leading U.S. Import Sources 201

U.S. Imports of Watches 201

U.S. Imports of Clocks 202

Tables:

U.S. Imports of Watches and Clocks 203

Top 25 U.S. Import Sources for Watches and Clocks 204

Dollar Market Shares of the Top 25 U.S. Import Sources for Watches and

Clocks 205

Leading U.S. Import Sources for Watches and Clocks (Graph) 206

U.S. Imports:

Watches and Clocks, by Type 207

Watches, by Type 208

Distribution of Watch Imports, by Type 209

Battery-Powered Watches with Cases of Precious Metal:

Mechanical Displays 210

Electronic Displays 211

Other Displays 212

Other Battery-Powered Watches with Cases of Precious Metal 213

Automatically Wound Watches with Cases of Precious Metal 214

Other Nonbattery-Powered Watches with Cases of Precious Metal 215

Other Watches with Cases of Precious Metal 216

Battery-Powered Watches:

Mechanical Displays 217

Electronic Displays 218

Other Displays 219

Other Battery-Powered Watches 220

Automatically Wound Watches 221

Other Nonbattery-Powered Watches 222

Other Watches 223

Complete and Assembled Watch Movements for Battery-Powered Watches:

Mechanical Displays 224

Electronic Displays 225

Complete and Assembled Watch Movements for:

Other Battery-Powered Watches 226

Automatically Wound Watches 227

Other Nonbattery-Powered Watches:

Measuring 33.8mm or Less 228

Measuring Over 33.8mm 229

Other Incomplete or Unassembled Watch Movements 230

Rough Watch Movements 231

Other Incomplete or Unassembled Movements for Watches and Clocks 232

Watchcases and Parts Thereof:

Precious Metal 233

Base Metal 234

Other Watchcases 235

Parts of Watchcases 236

Watch Straps, Bands, and Bracelets, and Parts Thereof:

Precious Metal 237

Base Metal 238

Other 239

Springs for Watches and Clocks 240

Jewels for Watches and Clocks 241

Dials for Watches and Clocks 242

Plates and Bridges for Watches and Clocks 243

Other Parts for Watches and Clocks 244

Clocks, by Type 245

Distribution of Clock Imports, by Type 246

Alarm Clocks:

Electric-Powered 247

Nonelectric-Powered 248

Wall Clocks:

Electric-Powered 249

Nonelectric-Powered 250

Electric-Powered Clocks with Watch Movements 251

Instrument Panel Clocks 252

Other Electric-Powered Clocks 253

Nonelectric-Powered Clocks with Watch Movements 254

Other Nonelectric-Powered Clocks 255

Complete and Assembled Clock Movements for:

Electric-Powered Alarm Clocks 256

Other Electric-Powered Clocks 257

Other Complete and Assembled Clock Movements 258

Complete and Incomplete Clock Movements and Rough Clock Movements 259

Clockcases of Metal and Parts Thereof 260

Other Clockcases and Parts Thereof 261

Parts of Clockcases 262

SECTION IX: ADVERTISING TRENDS IN THE U.S. WATCHES AND CLOCKS INDUSTRY

Analysis:

Overview 263

Media Expenditures 263

Top Advertisers and Leading Advertised Brands 264

Product Placements 266

Advertising for Clocks 266

Tables:

Media Expenditures for Watches and Clocks:

Total 268

By Type (Graph) 269

By Type 270

Top Ten Advertisers 271

Top Ten Advertised Brands 272

Watches, by Company and Brand 273

Clocks, by Company and Brand 279

SECTION X: STRUCTURE OF THE U.S. WATCHES AND CLOCKS INDUSTRY

Analysis:

Industry Sales 280

Payroll and Material Costs 281

Vertical Integration 281

Employment Trends 282

Average Hourly Earnings of Production Workers 283

Capital Spending 283

Inventory 284

Number of Manufacturing Establishments 284

Explanation of Terms 286

Tables:

Operating Structure 292

Gross Operating Margin 293

Value Added by Manufacture 294

Vertical Integration Index 295

Employment Structure 296

Total Labor Costs 297

Average Hourly Earnings of Production Workers 298

Cost of Living Index for Production Workers 299

Labor Productivity 300

Indexes of Real Labor Productivity 301

New Capital Expenditures 302

Plant vs. Equipment Expenditures 303

Ending Inventories 304

Number of Manufacturing Establishments:

Total 305

Number of Employees and Payroll, by State 306

Employment Size, by State 307

The Plant Manager' s Workbook:

How to Use This Section 308

Gathering Your Data 309

Developing Your Ratios 310

How Does Your Plant Stack Up? 311

SECTION XI: COMPANY PROFILES

Introduction 316

A.T. Cross Company:

Overview 317

Financial Performance 317

Cross Watches 318

AutoCross, Tourist Trophy, and G.T. Sport Performance Watches 318

Financial Summary and Analysis 320

Audemars Piguet North America:

Overview 321

History 321

Financial Performance 322

The Sports Collection 322

The Classic Collection 322

The Tradition of Excellence and Contemporary Collections 323

The Ladies'  Collection 323

Production 324

Advertising 324

Bulova Corporation:

Overview 325

History 325

Financial Performance 326

Watches 327

Clocks and Miniature Collectible Clocks 327

Advertising 328

Facilities 329

Financial Summary and Analysis 330

Casio, Inc.:

Overview 331

History 331

Financial Performance 332

Watches and Clocks 333

Advertising 334

Financial Summary and Analysis (Casio Computer Co., Ltd.) 335

Chanel S.A.:

Overview 336

History 336

Watches 337

Advertising 337

Chopard USA Ltd.:

Overview 338

History 338

Products 339

Citizen Watch Co., Ltd.:

Overview 340

History 340

Financial Performance 341

Watches and Clocks 341

Advertising 342

Financial Summary and Analysis 343

Compagnie Financiere Richemont AG:

Overview 344

History 344

Financial Performance 345

Watches 346

Advertising 347

Financial Summary and Analysis 348

Emerson Radio Corp.:

Overview 349

History 349

Financial Performance 350

Products 351

Financial Summary and Analysis 352

Fossil, Inc.:

Overview 353

History 353

Financial Performance 354

Watches 356

Distribution 356

Financial Summary and Analysis 358

Gucci Group N.V.:

Overview 359

History 359

Financial Performance 360

Watches 361

Financial Summary and Analysis 362

Howard Miller Company:

Overview 363

History 363

Products 364

LVMH Moet Hennessy Louis Vuitton SA:

Overview 365

History 365

Financial Performance 366

TAG Heuer SA Watches 367

Ebel SA and Other Watch Lines 367

Advertising 368

Financial Summary and Analysis 369

Montres Rolex S.A.:

Overview 370

Products 370

Advertising 371

Movado Group, Inc.:

Overview 372

History 372

Financial Performance 373

Watches 374

Advertising 375

Financial Summary and Analysis 376

Pulaski Furniture Corporation:

Overview 377

Products 377

Facilities and Employees 378

Raymond Weil Geneve:

Overview 379

Watches 379

Distribution 380

Salton, Inc.:

Overview 381

History 381

Financial Performance 382

Products 383

Financial Summary and Analysis 384

Seiko Corporation of America:

Overview 385

History 386

Financial Performance 387

Watches 387

Clocks 388

Seiko Corporation and the Olympic Games 388

Seiko Corporation to License Brand Name 389

Advertising 389

Swatch Group Ltd.:

Overview 390

History 391

Financial Performance 391

Watches 392

Advertising 393

Financial Summary and Analysis 394

Swiss Army Brands, Inc.:

Overview 395

History 395

Financial Performance 396

Watches and Clocks 397

Distribution 398

Advertising 398

Financial Summary and Analysis 399

Tiffany & Co.:

Overview 400

History 401

Financial Performance 402

Watches 403

Clocks 403

Financial Summary and Analysis 404

Timex Corporation:

Overview 405

History 406

Indiglo Technology 406

The Classic Collection 407

The Outdoor and Sports Collections 407

The Tech Collection 408

The Youth Collection and Other Timex Corporation Watches 408

Timex Corporation' s Licensing Agreement with Toastmaster, Inc. 409

Timex Corporation and SpeedPass Technology 409

Advertising 409

SECTION XII: DIRECTORY OF SELECTED U.S. MANUFACTURERS OF WATCHES AND CLOCKS

Introduction 411

Directory 412