Standing the test of time
Wristwatches are ticking back to life.
For years, doomsayers predicted the death of the watch as clock-equipped cellphones exploded in popularity. Some said watches eventually would go the way of VCRs and the Sony Walkman.
Not so fast.
After a drop during the recession, watches are experiencing a renaissance. Bulky ones have shown up on red carpets and runway shows. Retro styles have popped up on TV shows such as "Mad Men" and "Boardwalk Empire." And watch companies are rushing out with bright colors, new designs and high-tech varieties to suit every taste.
The Federation of the Swiss Watch Industry reported that watch exports from Switzerland surged 19.2 percent in 2011, one of its strongest years of growth in the past two decades. Swatch Group Ltd. said it was cutting back selling watch parts to other companies to meet its own increased demands.
Luxury brand Patek Philippe recently opened its first stand-alone U.S. store in Beverly Hills, Calif. And in yet another sign of the watch's return, shares of Fossil Inc., a popular brand for teens, leaped 31 percent in one day last month after reporting a 12 percent jump in profit in its second quarter.
"Watches are making a comeback," said Marshal Cohen, chief industry analyst at research firm NPD Group. "New trends are emerging, and consumers are back to buying watches."
They are bigger and flashier than ever. Some do far more than tell time, and many are used as much for decor as to tell time.
Industry watchers say that as consumers slowly climb out of the Great Recession, many are hankering to refresh their wardrobes but are unwilling to drop big bucks on entire outfits. A cheap option? Jazzing things up with new accessories — especially watches.
Young people such as 29-year-old Emily Schuman, who works full time on her lifestyle blog Cupcakes and Cashmere, are buying watches more as fashion statements than necessities.
Schuman, who lives in L.A., said she stuck solely to bracelets to decorate her wrists until two years ago, when she scooped up an oversized gold Michael Kors watch. Now she owns three timepieces and calls watches "an accessory that ties the whole look together."
Watch companies are eagerly courting this potentially lucrative group of consumers that has grown up with mobile devices.
Movado Group, which makes its namesake watches as well as ones under the labels Coach, Hugo Boss and Juicy Couture, rolled out its Bold collection last year, which includes timepieces with bright colors, such as pink and gold accents, said Mary Leach, the company's chief marketing officer.
Leach said that appealing to shoppers in their teens to their 30s has become a "major part of the strategy" at Movado, where sales have climbed 22.5 percent to $468 million in the last fiscal year after plunging 17.9 percent just two years ago.
"We think: How do we use coloration and sizing and materials to really speak to the younger generation who want to take chances and have a little more fun with their watches?" Leach said.
The rise of retro fashions has sent Timex designers digging into its extensive archives for classic watches that Don Draper or James Bond might wear, said Amy E. Goodman, fashion trend director for Timex Group USA Inc. Recent designs have featured metal link bands and bezel faces.
Goodman said that retailers selling Timex and other brands noticed the rising demand and started giving timepieces better real estate in stores.
"Watch displays are now more prominent in accessories areas," Goodman said. "Stores are realizing the uptick in sales and the need to make them more appealing."