Watches are everywhere. They are fashion statements and accessories, as well as timepieces-watches have become a definable part of a person's lifestyle. Perhaps this explains why watches have sold extremely well even through periods of recession. Despite the economic downturn of recent years, luxury watches that can command anywhere from $10,000 on up to million-dollar price tags are selling like hot cakes, according to industry leaders.

Watchmakers have become major advertisers as well. There has been an increase in ads by luxury watch brands, and the trend is expected to continue. One TV spot pits two seemingly unconnected sports, golf and Formula 1 racing, against the glamour of Monaco and Tiger Woods' perfect strokes. The goal of the commercial is to communicate the values of prestige, performance and precision.

The luxury watch business is extremely competitive at the retail level. Retailers generally feature companies that are marketing effectively and driving consumers into the stores. Watch manufacturers design lavish display environments for retail stores-complete with in-store videos and promotions targeted to upscale consumers, attracting attention in major shopping centers everywhere. The timepieces themselves attract attention with stone dials, alarms, dual time zones and sound capabilities.

The luxury watch market is unique in that's it's almost recession-proof, especially for those brands that tackle the challenging economy with creativity and style.