The wristwatch first came into its own during the first world war.

Officers on the battlefield soon realised that glancing at a watch on their wrist was far more convenient than fumbling in their garments for a pocket watch. And as the scale of battles increased, officers had to synchronise watches to conduct attacks at precise timings.

As a result, army contractors began to issue reliable, cheap and mass-produced wristwatches, which, once the war ended, went home with the officers, helping popularise wristwatches as a functional timekeeper.

Fast-forward to the 21st century, and with our pockets filled with mobile phones, iPods and BlackBerries flashing the time, you would assume wristwatch sales to be on a downhill slide. But recent results from industry giants such as Swatch Group, Richemont Group and LVMH tell a different story, with no signs of a slowdown.

As the need to buy a watch purely to tell the time diminishes, the watch industry has had to fight back. And it is doing so by offering the consumer innovative and imaginative timepieces that do more than merely tell the time.

‘When Zenith launched the style for women featuring hearts and star shapes, it captured a whole new market’

“People today are looking to buy a watch with a difference,” says Stephane Linder, head of product development at TAG-Heuer. “Compared with 20 years ago, the consumer has the opportunity to buy so many things – particularly electronic gadgets – so it is increasingly important for watch brands to come up with innovative ideas to compete. We are having to rethink the basics of watchmaking.”

TAG-Heuer has been responding by launching “concept watches”. Its first visionary timepiece called the Microtimer was launched in 2004 and uses digital technology to measure 1/1,000th of a second and its latest, the Monaco Sixty Nine, has taken the concept one step further with a reversible case – it has a digital display on one side with a traditional mechanical display on the other.

“We wanted to appeal to people who appreciate other types of design and functions such as car drivers as well as watch connoisseurs,” adds Linder. “Since we launched these visionary watches, the brand has seen record growth, with more and more people asking for this type of watch.”

Tissot is another brand keen on innovation. Its T-Touch models offer a range of functions activated by pressing the crown and then lightly pressing the touch-sensitive screen.

Its latest launch, T-Touch Trekking, has an altimeter, chronograph, alarm, compass, thermometer, barometer as well as the date and time. “With technological advances, you can give the consumer so much more than just a watch,” says Francois Thiébaud, vice-president of Tissot.

“With a T-Touch, you have an easily-accessible barometer so you know if it’s going to rain – it’s as simple and convenient as that.”

Mr Linder agrees: “An important element of watch design is becoming that of simple functions and ease of use. Think of the iPod, which is so easy and instinctive. Timepieces are going the same way.”

He predicts we will start to see watches with alarms that are extremely simple to set, as well as more dual-time watches. “People are travelling so much more now and they are wanting easy solutions to smooth their complex lives.”

A wide range of brands are offering dual-time watches to assist world-weary travellers, but Swatch is taking the travel watch to its limit, with launches that are much more than mere timekeepers.

The Fun Boarder for example, not only features an altimeter, which can display any height from sea level to 9,995m, but it can also be used as a ski pass. The watch’s unique code is loaded onto the resort’s system on-line (for some resorts, this can be done on-line beforehand) and its built-in microchip and antenna communicates with the ski lift sensors to give skiers easy access through turnstiles.

“Young people now have the choice of telling the time from so many sources,” says Swatch brand director Dave Edwards. “With our innovations, we want people to see that a watch doesn’t have to be just a straightforward timekeeper, encouraging them to buy more than one watch for different occasions.”

And at £55, the Fun Boarder makes an excellent, inexpensive addition to a watch-wardrobe.

Then there are the innovations at the higher end. Dunhill consistently launches fresh designs; its two most recent include the multi-function five-handed A-Centric Pentagraph as well as the Parody Stone, which is based on the myth of King Arthur and his knights of the Round Table. It features a hinged protective visor and hour markers drawn from the shields of the 12 knights.

Another top-end brand, Zenith, launched its Open series, which allows the wearer to see the mechanics of its traditional El Primero movement through the dial. Not a new idea, but when it launched the style for women featuring hearts and star shapes, it captured a whole new market, attracting women to the complexity of mechanical watches.

“There is so much potential in the watch industry, particularly for women’s watches,” says Mr Linder. “Men are getting all the great innovations, but women – who also need dual-time functions and alarms – are not really seeing any of it.”

One of TAG-Heuer’s latest launches for women is the Microtimer Denim Diamonds and Mr Linder says there is definitely more to come for the female market.

He adds: “Fresh, innovative design and additional features continue to attract new audiences to the world of watches.”