BaselWorld: Results of the WorldWatchReport 2009 Revealed

GENEVA - Internet demand for counterfeit goods is growing by 6% in the United
States, whereas it is shrinking across Europe.

- China is overtaking Japan and presents a high growth potential. It has
an online customer base with high brand awareness, but less awareness of the
models.

- Social media platforms like Facebook and YouTube are becoming crucial
meeting places for luxury watch brands.

The 5th edition of the WorldWatchReport market study published by
IC-Agency, a company specializing in luxury digital marketing, deciphers
queries entered into search engines throughout the Internet from millions of
prospects for 25 luxury watch brands (compared to 12 previously). The survey
covers 7 major export markets: China and Japan (for the first time), as well
as the United States, the United Kingdom, Italy, France and Germany.

Below are the main trends revealed by the 2009 report.

Global demand distribution for luxury watches:

Europe represents the major market share (44.2%), with the UK leading
(14.6%), followed by Germany (12.1%), Italy (9.6%) and France (7.7%).

The United States is still by far the most important market (42.8%).

Asia is still weak, with 13.2% market share, but China (7.4%) overtakes
Japan (5.8%), whereas the level of Internet use there is only 22%, compared
to 74% in Japan.

The Chinese are mainly interested in brands (77%), and are less
interested in models (less than 10%, whereas that figure is usually around
18%), confirming the awakening interest in Swiss watch culture and the
importance of product marketing.

The most demanded models:

Omega holds the two top places in the top 20 models ranking, with
“Seamaster” (7.8%), and “Speedmaster” (4.7%), overtaking Rolex’s “Daytona”,
which at 4.3% drops from 2nd place to third.

TAG Heuer’s “Link” (10th place), Rolex’s “Date” (16th place) and Omega’s
“Planet Ocean” (20th place) enter the ranking for the first time.

The luxury watches ambassadors:

Omega - the highest ranked brand (17%) - uses the “Michael Phelps
effect”: an American swimmer who beat the Gold Medal record in a single
Olympics (8 medals), in the Beijing Olympic Games.

Six of TAG Heuer’s ambassadors are ranked in the top 20. At the top of
the line is golfer Tiger Woods, who garners 15% of searches, followed by
Bollywood star Shah Rukh Khan (7%), Formula One racing driver Lewis Hamilton
(4%), actor Leonardo DiCaprio (3%), tennis star Maria Sharapova (3%) and
deceased actor and racing driver Steve McQueen (2%).

Counterfeiting:

The main market for counterfeit goods is still the United States,
representing over 66% of global demand (constant range of +6%). Will the
financial crisis push the Americans towards counterfeit timepieces?

However, this figure remains marginal (6%) compared to the total number
of searches for authentic products (94%).

Eighty percent of demand for counterfeit products is for Rolex only. The
remaining 20% is divided up between the other 24 brands analyzed.

Japan is the only country in which there are more searches for
counterfeit goods on Omega (15%) than Rolex (11%).

Social media networks:

Brand advertising on official websites is no longer enough:

Facebook (180 million members)

Cartier dominates Facebook with 30,000 fans, followed by TAG Heuer
(18,500), Rolex (17,500), Bulgari (14,300) and Breitling (13,600). Are
multi-product brands better positioned to grasp the opportunity presented by
social media?

YouTube (100 million videos viewed monthly)

Videos posted by fans are now taking up 38% of brand visibility. Is this
an opportunity to support these fans who often have a high power of
persuasion?

About the WorldWatchReport:

The market study carried out by IC-Agency is published in partnership
with Europa Star (www.europastar.com) “the most influential watch magazine”,
and analyzes demand for 25 luxury watch brands in 7 markets. Luxury watches:
Audemars Piguet, Blancpain, Breguet, Girard-Perregaux, Jaeger-LeCoultre,
Patek Philippe, Vacheron Constantin, Franck Muller, Zenith, IWC. Women’s
Jewelry: Bulgari, Cartier, Chopard, Piaget. Prestige: Breitling, Hublot,
Omega, Rolex, Tag Heuer. High Range: Baume & Mercier, Ebel, Longines,
Montblanc, Raymond Weil, Rado.

www.worldwatchreport.com

About IC-Agency: luxury digital marketing

Created in 2000, IC-Agency is a leader in luxury digital marketing. Based
in Europe (Switzerland) and in North America (Canada), IC-Agency provides its
clients with services such as analysis, promotion, optimization and
protection for their brands, products and services. Among IC-Agency’s clients
are many independent luxury brands, as well as brands belonging to groups
such as Swatch, Richemont, LVMH, and PPR/Gucci. The company was recently
awarded the Strategis/HEC Lausanne prize for its excellence in Management.

www.ic-agency.com

Press contact
Florent Bondoux, IC-Agency
Tel: +41-79-27-40-840
Email: pr@ic-agency.com

Source: IC-Agency

Florent Bondoux, IC-Agency, +41-79-27-40-840, pr at ic-agency.com