This year, Patek Philippe turned its attention to Japan, for a themed exhibition entitled Watch Art Tokyo 2023. The event was organised over two weeks in June, attracting 60,000 visitors who came to soak up the Patek Philippe aura across the 2,500 m2 venue. The Maison placed the bar very high with the exhibition, which was the biggest they have ever organised. The event was accompanied by the launch of six limited series, including two technical world firsts, as well as a rich collection of pieces celebrating fine craftsmanship. Clearly, the Geneva watchmaker, which has been present in Japan for over 150 years, spared no effort for Watch Art Tokyo. As Patek Philippe president Thierry Stern pointed out, “This market is very important to us, because of their very high standards of excellence.” In other words, you have to earn the respect of Japanese clients!
Financial support
But what’s true of Patek Philippe is also true of the entire Swiss watchmaking sector. And for good reason. Japan and its 125 million inhabitants are the fourth biggest export market for Swiss watches, trailing behind only the United States, China and Hong Kong. But they are not often mentioned when it comes to countries carrying the flag for the Swiss watch industry. When people talk about the Asian watch industry powerhouse, they’re usually referring to the Chinese dragon and its special administrative region, Hong Kong, which is roaring back onto the scene. But Japan is often forgotten.
And yet Japan is a major actor, particularly since, with its own watchmaking culture and its high level of economic development, it offers a stability unmatched by its Chinese neighbour. Over the first 10 months of this year Swiss watchmakers grew their exports to Japan by 5.5% compared with the same period of 2022 – and 25.9% compared with 2021. For comparison, China was up 9% this year, but down 5% over two years. Of course, not everything is rosy in the Land of the Rising Sun. National debt has reached 260% of GDP and its population is ageing. Nevertheless, it is probably the only developed country to have the benefit of a highly accommodating monetary policy, combined with a vast economic regeneration plan. The government has just announced it will inject 100 billion euros into reducing inflation and countering the fall of the yen on buying power.
A mature market
Given these conditions, Japanese clients are certainly worth courting. But they are not like other clients! According to a study by Agility Research & Strategy, the buying behaviour of Japanese customers can be radically different from that of their neighbours. To begin with, Japan is a nation of department stores, with only a small proportion of purchases made online. The new high-end Ginza Six shopping centre in Tokyo, for instance, offers around 250 shops, restaurants and leisure destinations. Then there’s the fact that Tokyo is at the top of the list of worldwide luxury shopping destinations for 2023, according to Lartisien. Moreover, Japanese buy luxury products first and foremost because of their quality, and as a matter of personal preference. They are unmoved by considerations of social status, and even less by the “expert” advice of influencers. The customer experience is still highly valued, and is often elevated to a form of ceremony.
Japan’s watchmaking culture also counts for a great deal. The origins of Seiko date back to 1881, and Grand Seiko is currently building a highly respected reputation internationally. And Japanese watch creators Hajime Asaoka and Masahiro Kikuno, both members of the Académie Horlogère des Créateurs Indépendantes (AHCI) are becoming more widely known, which points to an enviably mature market. There are many more Japanese companies that are part of the international watchmaking landscape. Japan is a fully-fledged watchmaking nation, eminently capable of shaking up the competition, as it did in 1969 at the dawn of the quartz revolution. It’s up to the venerable Maisons of the Old Continent to take up the challenge!
