Neuromarketing study: How much "smart" does the perfect luxury watch really need?
There is still a great deal of uncertainty in the Swiss watch industry regarding the future of luxury watches, and various brands are desperately trying to incorporate a wide range of «smart features.» An independent neuromarketing study examines whether this is even the right approach.
Foreign smartwatches are taking an ever-increasing slice of the global watch market. This also affects Swiss luxury watch brands, whose bosses often still believe that smartwatches pose no threat to them. Apple, for example, is about to conquer the wrists of the world after the trouser pockets (cf. HZ Insights Podcast). Last year, Apple sold an estimated 31 million watches. By contrast, the Swiss watch industry sold 7.5 million fewer watches today than in 2015 - the first year of sales for the Apple Watch.
A serious counter-move from Rolex and Co. is still pending. Is it time for local watch brands to become truly "smart"? This current neuromarketing study with a focus on Switzerland shows which aspects of a smartwatch are also exciting for luxury watches - and which "luxury watch features" on the other hand should not be neglected by making them smart.
Initial smart efforts are already being noticed emotionally
If the emotions of various luxury watch brands are analyzed, it is immediately apparent: Luxury watch manufacturers with smart models are emotionally closer to smartwatches than those manufacturers without watches with smart functions (see chart above).
On the one hand, this finding may be obvious due to the logical result, but on the other hand, it must be remembered that the brand emotions of each manufacturer in the study were collected completely non-verbally and completely detached from any smartwatch topics. In addition, this emotional map (EmoMap) provides further exciting (strategic) clues and questions:
a) A few products are enough to move brand emotions towards "smart" (for all manufacturers with smart models, luxury smartwatches only make up a small fraction of the entire product portfolio)
b) Certain luxury smartwatches had a greater emotional impact than others. For example, Hublot "made" the biggest shift towards smartwatch emotions in the subconscious of potential customers with its "Big Bang Referee 2018 FIFA World Cup Russia". Followed by Tag Heuer (e.g. "Tag Heuer Connected") and Breitling (e.g. "Exospace B55 Yachting"). The luxury watch brands Montblanc, Alpina and Frédérique Constant also already appear more "smartwatchy" than Rolex, Omega and the like, which do not yet have any smart models.
c) Is this chosen path towards the smartwatch the right one from a strategic point of view? Or do you run the risk of diluting your own brand and missing the desired emotions of potential watch wearers?
"Smart" must not overshadow luxury motifs
The emotional volume (emotional relevance) of the different motives shows that the purchase motives of a classic luxury watch all have a stronger emotional impact than those of a smartwatch (see chart "Average emotional volume of classic vs. smart motives"). There is a good reason for this: topics such as social status, family heritage and investment are psychologically much more profound than fitness tracking and news. Luxury watches therefore traditionally play on much more deeply rooted motives that move and drive people internally than the new smartwatches. "Smart" themes (still) respond to comparatively and generally more "superficial" motives.
By incorporating smart aspects, Rolex and co. can score particularly well in the consumer's brain if they combine them with classic motifs. If, on the other hand, they focus too heavily on the smart trend, they run the risk of not playing enough on the fundamental drives of consumers when buying a luxury watch. Potential smart features should therefore definitely be charged with a deeper meaning.
Average emotion volume of classic vs. smart motifs
For luxury watches, the following still applies: main motif = status
Which motives drive the purchase of a classic luxury watch (see chart "Most important motives for luxury watches")? The most important emotional motive for buying a classic luxury watch is to own a valuable object and to be able to show it to others. In second place in this motive ranking is the fact that a luxury watch is a piece of jewelry on the wrist. Both of these motifs contribute to the need for status. A luxury watch is therefore unconsciously clearly primarily a status symbol, even if this is often denied verbally.
Consumers also buy luxury watches to pass them on within the family. Patek Philippe, for example, has been using this motif (3rd place in the ranking) particularly well for years (see Patek Philippe campaign).
Subconsciously, the motive to buy a watch as an investment plays a significantly subordinate role. The "investment" argument is ratio-based and helps buyers to reduce so-called cognitive dissonance. It is therefore a justification for the purchase if one does not feel entirely comfortable due to the high price.
In summary, consumers in the classic luxury watch market buy a watch to wear it, to show it to others and to pass it on as a family heirloom - and not to lock it away in a safe and hope it will increase in value.
If smart, then communication instead of tracking and information
As part of this neuromarketing study, the most important motives for buying a smartwatch were also examined non-verbally. Comparing these "smart" motives with the emotional desire for the classic luxury watch reveals which smartwatch functions luxury watch wearers actually want.
The motif map (see chart "Which smart aspects fit the perfect luxury watch?") shows that the motif "communicate with others" is emotionally close to the perfect luxury watch. The motif "pay electronically with the watch" is further away, but could still play a role for the perfect luxury watch. In contrast, the motives "be informed anytime and anywhere" and "track my everyday life" clearly play a subordinate role.
As a result, Swiss luxury watch manufacturers would do well to integrate smart communication functions into their products. These could be communication features in the narrower sense, such as telephony, WhatsApp and e-mail. In addition, features that reconcile the need for communication and socializing with the aforementioned need for status are also worth considering.
On the other hand, payment functions and the connection between the watch and the bank account would possibly bring the luxury watch even closer to the desired emotions.
Swiss luxury watch manufacturers should clearly distance themselves from tracking functions. Consumers don't want to go jogging and track their performance with a luxury watch - there are pure, classic smartwatches for that. Information functions are also less desirable in the subconscious. A luxury watch should not display weather information or news - nor should it provide World Cup results (this may be interesting for a short time for freaks, but contradicts the long-term target feeling of a luxury watch).
Conclusion: What does this mean for Swiss luxury watches?
Smartwatches are conquering the watch market - Swiss luxury brands must react. What options are open to them? It is clear that Swiss watch manufacturers could benefit from smart functions. Those who master the following challenges will be able to (re)gain significant market shares in the future:
1. the luxury watch can benefit from smart functions. But how do you prevent the "classic" luxury watch motifs from being diluted as a result?
2. what could the smart communication functions (and possibly also payment functions) of a luxury watch actually look like? And how can these be meaningfully combined with the status motif?
3. what overarching strategies and communication concepts are needed to win back lost market share from Apple & Co? Perhaps also through digital distribution - another field that the Swiss luxury watch industry has left to smartwatch manufacturers for far too long.
Note: This study was conducted by Zutt & Partner. The management consultancy specializing in neuromarketing offers free Workshops on the study (detailed results, interpretations, further information on the study and initial approaches to solutions). Werbewoche.ch publishes the study free of charge out of editorial interest.
