Japan Retail Sector "Seiko Group: Watch business strategy briefing, "Jap...

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Japan Retail Sector "Seiko Group: Watch business strategy briefing, "Jap...

Global Research

11 June 2026ab

Japan Retail Sector Equities

JapanSeiko Group: Watch business strategy briefing,

"Japan Luxury," from Japan to the world Retail

Takahiro Kazahaya

Analyst

takahiro.kazahaya@ubs.com

Summary +81-3-5208 6226

We had the opportunity to attend the watch business strategy briefing held by Seiko Kazuki Oike

Group (8050, not covered) on 11 June. The briefing featured Akio Naito, President and Associate Analyst

Representative Director of Seiko Watch, as the speaker. This report summarises the key kazuki.oike@ubs.com

points and implications. +81-3-5208 6964

Business strategy for the watch business

The watch business manages its value chain, including component manufacturing,

assembly, adjustments, promotions, and sales, on an in-house basis. Developing its

business under the "Japan Luxury" concept, the company's brand portfolio is focused

on Seiko GB (Global Brand) in the premium segment (average unit price of $750 to

$4,000) and GS (Grand Seiko) in the luxury segment (average unit price exceeding

$4,000). Prior to 2014, the company introduced region-specific collections, but by

narrowing down brands and collections globally and unifying global marketing, it was

able to improve investment efficiency. In terms of its distribution strategy, the company

has opened directly managed stores in major cities worldwide to clearly communicate its

brand concepts. In its regional strategy, it overhauled its organizational structure in the

US market in 2018. These initiatives have enhanced brand recognition, resulting in the

watch business achieving sales of ¥203.1bn, OP of ¥27.0bn, and an OP margin of

13.0% in FY3/26 (consolidated sales of ¥335.7bn and consolidated OP of ¥30.9bn).