Despite 2005 Setback, U.S. Watch/Clock Market Set to Reach $7.8 Billion by 2010

New York, June 26, 2006 — Facing heavy competition from rival devices such as cell phones, PDAs, and iPods, the market for watches and clocks suffered during the 2005 season, dropping 5.1% from 2004 to reach $7.1 billion in sales. The outlook, according to Watches and Clocks in the U.S., a new report from Packaged Facts, is less than bleak, however, as a rebound to $7.8 billion by 2010 is projected.

Watches as a whole declined 5.6% in 2005 with fallout in both the mass (under $50) and luxury (over $1,000) markets, both of which are generally impervious to negative marketplace conditions. Packaged Facts projects, however, that these declines are cyclical in nature and will not impede future sales of watches, which by 2010 are expected to reach $6.7 billion.

While other hand held devices and electronics displaying time are wreaking havoc on the watch market, the “casino effect”—the banishment of clocks from public spaces such as restaurants and offices for the purpose of keeping people longer—is having a similar effect on clocks. Clocks finished 2005 with $990 million in retail sales, a 2.2% drop from 2004, however, a similar turnaround is expected, which should drive the market back up to $1.1 billion by the end of this decade.

“While these factors are continuing to erode the market, watch and clock marketers continuously rebound with sophisticated fashion-inspired, high-tech, and sports designs to keep consumers coming back for more,” notes Don Montuori, the publisher of Packaged Facts. “High profile licensing, particularly pervasive in kids’ watches/clocks, will continue to be a strong sales driver as designer names and logos appear in all price tiers.”

Now in its 7th edition, Watches and Clocks in the U.S. examines the market from the ground up, including market trends and growth opportunities—with focus chapters on sports and kids watches; competitive profiles of industry leaders; distribution and retail channels; and consumer behaviors surrounding watches and clocks. Priced at $3,000, this report can be purchased from Packaged Facts by visiting: http://www.packagedfacts.com/pub/1208059.html. It is also available at MarketResearch.com.

About Packaged Facts
Packaged Facts, a division of MarketResearch.com, publishes market intelligence on a wide range of consumer industries. For more information visit www.PackagedFacts.com, or contact Tom Ehart at 240-747-3014, or tehart@marketresearch.com.