Kennedy is preparing to add luxury (connected) smartwatches to its current brand mix in late 2023.
Speaking with Ragtrader, Kennedy CEO Aaron Faraguna said the advent of the digital watch, particularly the Apple Watch, has driven increased interest in horology in recent years.
"We saw that 2-4 years ago, and that kind of interest in demand really hasn't dissipated in recent times," Faraguna said. “Certainly our clients talk to us about [connected watches] and there are a couple of brands that we're speaking to about coming onto the Kennedy platform in the future."
Faraguna said that there are a number of luxury watchmakers such as TAG Heuer that are producing luxury smartwatches, which the high-end industry prefer to call ‘connected’ watches, with prices ranging above $1,000.
The global smartwatch market size was USD$30.4 billion in 2021 and is expected to expand at a compound annual growth rate of 8.2 % from 2022 to 2030, according to consultant firm Grand View Research.
The firm say the growth will be driven by increased health and fitness tracking by consumers.
As well as the expected rise in luxury connected watches, Faraguna said the next emerging focus is sustainability, particularly sourcing and manufacturing.
"Cartier are doing a brilliant job, they've got a solar-powered watch," Faraguna said. "Panerai are using recycled materials, a number of brands are using vegan straps.
"The luxury watch segment has really grown over the last few years, but that sustainability angle is absolutely coming into the fold for a number of the key brands. And clients want to see that too.
"Clients do care where their money's being spent, and if the brand's values aligned to theirs. Sustainability is such an important social issue, that people are using their purchasing power to line up with their beliefs.
"The luxury industry is no different in terms of where they're taking their approach."