Updated Nov 20, 2022 14:20

Watch Market in Sri Lanka

Market Overview
The Sri Lankan watch market soared to $ in , increasing by % against the previous year. This figure reflects the total revenues of producers and importers (excluding logistics costs, retail marketing costs, and retailers' margins, which will be included in the final consumer price). Overall, consumption posted prominent growth. As a result, consumption attained the peak level and is likely to continue growth in the immediate term.


Consumption
In , the amount of watches consumed in Sri Lanka dropped modestly to units, remaining constant against . In general, consumption, however, recorded a buoyant increase. As a result, consumption attained the peak volume of units, leveling off in the following year.

The revenue of the watch market in Sri Lanka reached $ in , flattening at the previous year. This figure reflects the total revenues of producers and importers (excluding logistics costs, retail marketing costs, and retailers' margins, which will be included in the final consumer price). Overall, consumption, however, saw prominent growth. Watch consumption peaked in and is expected to retain growth in the near future.


Market Forecast
The watch market is expected to start a downward consumption trend over the next eight years. The performance of the market is forecast to decrease slightly, with an anticipated CAGR of -% for the eight-year period from to , which is projected to depress the market volume to units by the end of .

In value terms, the market is forecast to contract with an anticipated CAGR of +% for the period from to , which is projected to bring the market value to $ (in nominal prices) by the end of .


Market Structure
Watch market in Sri Lanka consists almost entirely of imported products. In , the share of imports in total consumption accounted for % in value terms and % in physical terms. The share of imports decreased moderately (- percentage point) over the period under review.


Trade Balance
Sri Lanka remains a net importer of watch; in physical and value terms, imports consistently exceeded exports from 2007 to . In , there was a significant trade deficit of units, which was equal to $. This tangible trade deficit reflects the fact that the market remains dependent on imports, which is likely to continue in the medium term.