Singapore is
currently the biggest potential market for high-end watch repair and sales
revenue in Asia after Hong Kong and Tokyo.
While Mainland China as a whole represents
a massive market, it is often viewed as a collection of regional markets; Singapore
stands out as a singular, highly concentrated "watch retail hub" for
Southeast Asia.
Key Markets Following Hong Kong and
Tokyo
- Singapore: Often cited as the top
outperformer in the region, it receives roughly $460 million in
Swiss watch exports annually. It serves as a critical service and sales
node for wealthy collectors from neighboring Indonesia and Malaysia.
- Seoul: South Korea's capital is a
major epicenter for high-end watch retail, accounting for over 60% of
luxury watch sales in the country. It is characterized by high urban
affluence and a robust luxury infrastructure.
- Shanghai/Beijing: While the Chinese
market has faced recent challenges, Tier 1 cities remain stable. China
overall accounts for approximately 45% of regional sales in
Asia-Pacific, with primary demand concentrated in these major metropolitan
hubs.
- Bangkok: Thailand is an
increasingly lucrative market that attracts both established and emerging
luxury brands, driving a growing need for after-sales service.
Market Drivers for Repair Services
- Mechanical Watch Growth: Mechanical
watches are the fastest-growing segment in Asia-Pacific. Unlike quartz or
electronic watches, these require regular, skilled maintenance, creating a
high-margin "after-sales service industry".
- Rising Wealth Concentration: The
increasing number of high-net-worth individuals (HNWIs) in these cities
directly correlates with the demand for luxury watch servicing, as these
items are viewed as both status symbols and long-term investments.
- Certified Pre-Owned (CPO) Market:
Initiatives like brand-controlled CPO platforms are rising in these hubs,
further necessitating professional repair and authentication services to
maintain value.
In my understanding
after 2027, the Shanghai will be one of the biggest potential market for Watch repair other than Hong Kong. But to
build up a reptation in that Metropolitan city like Shanghai isn’t easy, all
may take some reference from other Country carrying the same brand name and set
up a second office, due to the good logistic and unfractured if we can have
enough capital I think Shanghai is a hidden gem for Vintage watch sale and
watch repair business there… Only concerns how to control the cost to make the
business profitable say in 3 years.
I had a long discussion with one of the business men there yesterday in Shanghai on this topics… Please do comment if you have and share your idea…
Paul Ip
