CONSUMER MOTIVATION IN THE LUXURY WATCH MARKETS OF UKRAINE AND ITALY: PRE-PANDEMIC/WAR TRENDS AND PREDICTIONS
DOI:
https://doi.org/10.17721/1728-2667.2023/222-1/9Keywords:
luxury watch market, consumer motivation, Ukraine, Italy, COVID-19 pandemic, warAbstract
This article examines consumer motivation within the luxury watch markets of Ukraine and Italy before the onset of the COVID-19 pandemic and the war in Ukraine, as well as their future prospects following the conflict's conclusion. The expert survey indicates that both countries share similar motivations and purchasing behavior, with social status, fashion, and personal preferences serving as the primary drivers for luxury consumption. Ukrainian consumers exhibit more overtly demonstrative behavior driven by status, wealth, and social group alignment. Italians prioritize social motives, prestige, fashion, horological art, and status display. Brand and price are significant in Ukraine, while brands and influencers impact Italian consumers' choices. Perception maps reveal that Patek Philippe and Audemars enjoy the most favorable brand image, with Rolex following closely behind as Italy's leading luxury watch brand. The study shows that the COVID-19 pandemic positively impacted market development, generating an unfulfilled demand that increased sales and prices for luxury watches, with collectors demonstrating rapid demand growth. A new trend in purchasing vintage non-working watches for their stylish appeal emerged. However, the ongoing war in Ukraine caused severe damage to both markets, with demand in Ukraine plummeting. Nevertheless, both markets' stable consumer motivation and purchasing patterns enable the prediction of a swift recovery in demand for luxury watches during the post-war period. The return of refugees from Europe and other countries to Ukraine will contribute to the Europeanization of Ukraine, potentially promoting European values that could positively impact the vintage watch segment, which was unpopular among Ukrainians before the war. Additionally, the rapid reconstruction of the country under a national "Marshall Plan" will likely give rise to another trend in the luxury watch market.
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