Technological Change and the Watchmakers

The global watch business is estimated to be worth around $22bn per year. It is still a big market, but the market leaders face some significant competitive threats from substitute products.Can mechanical watchmakers compete effectively with the big smartphone brands? They need to find a way to do this soon unless their products are to be consigned to targeting a niche segment of older, wealthy customers.

"No innovation, no future" says the boss of watchmaker Hublot in the useful video clip below from the FT.

He says that Innovation has to be a "permanent attitude" where innovation is about being "close to the market".

Casio is hoping that hybrid watches - which connect their watches with user smartphones - might be the answer to counter the threat of the likes of Samsung and Apple who are developing and launching "wearable technology".