Fan-shaped watch from Voila.

One digital watch appears like a candy bar at first glance; another, appearing as a large round mirror, is illuminated with a gentle shake of the wrist to reveal an analogue watch dial; a third watch features a luxurious gemstone-studded fan-shape reminiscent of a miniature Chinese ink painting.

The imagination and creativity of Hong Kong's branded watch producers are being challenged further than for many years. They're launching innovative designs to tap into a growing yet increasingly competitive market for medium-priced timepieces. The more modestly-priced products tend to be worn as fashion accessories to complement trendy outfits.

Competition has intensified because more international designer fashion brands have added watches to their accessories lines. But as the purchasing power of many consumers has been dented by the economic downturn, they have become increasingly attracted to branded design-oriented watches available at relatively affordable prices, said Sarah So, Business Development Manager of odm.

So: brands at affordable prices.		Khemlani: needs to tell more than time.

"A watch needs to tell more than just time," said Roger Khemlani, Founder and Creative Director for Intertime FE Ltd. The company markets watches studded with precious coloured gemstones and diamonds under the Voila brand.

Tam aims at youthful styling.

More Hong Kong manufacturers have diversified into mechanical watches with multiple functions available at very competitive prices, thanks to the increased availability of Chinese mainland-produced, highly complicated mechanical movements.

Managing Director of Zurie, Kelvin Tam, said his company's creations concentrate on youthful styling, from US$260 to US$2,560 at retail.

Watches of large and novel design, complete with vibrant colours will continue to be the dominant fashion trend. "Consumers are more open to colourful watches of daring designs," said So of odm.

"Colourful designs convey positive energy and cheer people up," said Mina Chow,  Brand Manager for Romago Design.

Demand for concept watches

	Chocolate series.

More young consumers, particularly those in Southeast Asia, are drawn to "new concept" watches, said So of odm. Catering to this growing demand, the company has unveiled several new series, including the Chocolate Pendant, Chocolate and XL Bloc, under its brand.

"These series target teenagers who are looking for fun fashion accessories to go with their individualistic styles," So continued. odm’s watches retail from US$90 to US$110.

XL Bloc series.

Resembling candy bars, the digital watches in the Chocolate series feature plastic cases and silicone straps. The XL Bloc designs are geometric and minimalist, with four round displays and various functions, including dual time, calendar and chronograph.

The company has a separate line called odm Original which features watches combining more mature and stylish use of shapes and colours with ultra-modern designs. The target customers for this line are young executives who are fashion-conscious and have higher disposable incomes.

New series include the Filmatic II. Its watches feature a unique e-paper technology applied to a curvy bangle, creating a large viewing angle with a futuristic exterior. "Even with this cutting-edge technology, watches in the Filmatic II series are still affordable at around US$190 a piece," So said.

odm insists on following up with more support for overseas distributors in terms of marketing ideas. "We will also raise the proportion of entry products, hoping to maintain sales in this climate, when spending power is low," So added.

Patented design with a twist

Watches under the Romago Design brand feature a patented movement construction with multiple layers of sapphire crystal and glass. The domed face of a Romago Design watch looks, on the face of it, like a mirror.

Romago design.		Distinctive look.

An analogue watch dial is revealed when the wearer presses a button on the case to activate the LED illumination. Producer Best Power (HK) Enterprises Ltd spent three years on conceptualising and producing the Romago Design watch, said Mina Chow.

Best Power is to phase in the second generation of Romago watches equipped with a more advanced shaking, motion-activated illumination system. "The new watches have a built-in sensor. When the wearer shakes the watch and then keeps his wrist at a 45-degree angle for five seconds, the analogue watch dial will be illuminated automatically. The mirror will reappear after six seconds," Chow said.

Romago Design watches were first introduced to Hong Kong in early 2009 catering to fashion-conscious consumers between 20 and 30. In response to the changing tastes of its target group both in the SAR and overseas, the company has diversified its range of designs by adding more glitter and broadening the colour palette.

"Before the Christmas shopping season, we'll introduce more feminine styles," Chow said. The latest styles include watches in stainless steel cases set with multi-coloured crystal gemstones and are expected to retail below US$250.

	Romago to be introduced on the Mainland.

"Our pricing strategies are relatively conservative. The latest consumer research indicates that under the current economic conditions, most consumers are cautious when it comes to purchases of luxury items above US$150 at retail."

"As we operate an office [on the Chinese mainland], we will introduce Romago watches there and expect they will be available through some points-of-sale at several department stores in Guangzhou and Shanghai by Christmas," she added.

Brand diversifies price range

Renowned for its design-orientated, gem-studded watch collections, the Voila brand has diversified its collections by launching a "no-frills" studio series which consists of watches of similar designs without any precious stones.

Time Flies piece.

"Because of the economic downturn, affluent consumers from Japan and the US are showing more interest in our studio lines," said Khemlani.

Customers can get almost the same look but pay much less. For instance, a design in stainless steel set with diamonds in the Time Flies collection retails at around US$2,514 while its studio version available at US$390.

Voila has also introduced a line called Oriental Breeze that features gem-set watches with fan-shape cases reminiscent of classical fan ink paintings. The watches with hand-painted enamel dials and diamonds are available at US$1,350. Retail prices of models with coloured sapphires are at US$870.

Voila supplies its watches to jewellery shops all over the world. "Since the start of the economic downturn, there has been a sharp decline in the number of shoppers visiting malls and specialised stores. But we have seen increased activity at our online portal. We have therefore revamped our website and increased the budget for e-commerce," Khemlani added.

Mechanical watches with multiple functions

In a bid to broaden its customer base to include more women, Zurie has developed a wider range of mechanical watches with multiple functions and diversified the use of materials, said Tam.

"We'll launch some new unisex designs with mechanical movements of 'skeleton' design (movement clearly visible on the watch's face) and some styles will have coloured crystal gemstones. These new designs retailing around US$260 are expected to help us diversify sales to women."

New timepiece.		Skeleton design.

Zurie sources all of its highly complicated movements with multiple functions from Tianjin Seagull Watch Co Ltd in Tianjin City on the Mainland. Most watches are in stainless steel cases, ranging from classic to more sporty in styles, depending on the functions, retailing from US$250 to US$2,420.

For strict quality control, Zurie assembles its watches at its workshop in Hong Kong.

Sales pick up

After a slow first half of 2009, manufacturers of medium-priced branded watches are cautiously optimistic about sales in the last quarter of this year.

Said So of odm: "sales have been slowly picking up in the [third] quarter but we are not sure at this stage whether the growth is sustainable. Meanwhile, retail sales in China are quite strong."

At Romago Design, Chow is confident that the company will achieve a 30% monthly sales growth by the end of 2009.

from special correspondent Wilson Lau, Hong Kong