Luxury Watches - Nigeria

eCommerce sales have high growth potential, yet they are comparatively underdeveloped in the Luxury Watches segment. The industry has been slow to embrace this sales channel out of an aversion to the high visibility on platforms whose content brands cannot completely control and because of an unwillingness to disrupt the well-functioning distribution structure, which still relies heavily on independent retailers and department stores. Instead, this digital space has been explored by design-focused online-only start-up brands in the mid-market to entry-level luxury region, which use the benefits of social media marketing. An example of this is Sweden’s Daniel Wellington.

Data coverage:
The data encompasses B2C enterprises. Figures are based on reported company revenue data from the main players of the market. The market data presented here is based on an analysis of the financial filings of a set of market leading companies that target the luxury segments within the specified categories and only companies with a revenue from more then 150 million US-Dollars per year are considered. Smaller companies and artisanal production unaffiliated with the covered companies are not included in the data.

Modelling approach:
Market sizes are determined through a Top-Down approach, building on specific predefined factors for each market. As a basis for evaluating markets, we use resources from the Statista platform as well as on in-house market research, national statistical offices, international institutions, trade associations, companies, the trade press, and the experience of our analysts. We evaluate the status quo of the market, monitor trends, and create an independent forecast regarding market developments of the global Luxury Goods industry. Since reporting standards vary widely between companies, an array of estimation techniques has been employed to harmonize the reported key performance indicators with the market definitions employed here. For example, among other indicators, the resident population of High-Net-Worth Individuals (abbreviated as HNWI, people with investible assets exceeding 1 million US-Dollars) has been used in combination the Google Trends relative search interest on each company to allocate sales geographically.

Forecasts:
In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behaviour of the relevant market. For example, the exponential trend smoothing is well suited for forecasting the Luxury Goods market with a projected steady growth. The main drivers are GDP per capita and consumer spending per capita.

Additional notes:
The data is modelled using current exchange rates. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. The market is updated twice a year. In some cases, the data is updated on an ad hoc basis (e.g., when new, relevant data has been released or significant changes within the market have an impact on the projected development).