The timepiece is a timeless holiday gift they’ll always cherish.

With the time of day listed everywhere from smartphone displays to laptops to our car dashboards, the need for a watch to tell time isn’t as pressing as it was even just a few years ago. Instead, watch brands are adding features to compel shoppers to want watches, from creating more functional gadgets that track stock quotes or the number of calories burned to transforming the watch itself into a fashion accessory.

The launch of the Apple Watch (from $349) has made the smartwatch – and its apps galore – an appealing alternative to analog watches. That allure is siphoning shoppers away from traditional fashion brands with sales down in dollar volume about 5 percent in July compared to the year prior.

“While Apple’s [sales] figures aren’t crystal clear … it’s hard not to draw conclusions that there’s some cannibalism in the market,” says Fred Levin, president of the luxury practice at NPD Group.

A bump now, but in the long term Apple’s grand entrance in the timepiece sector will prove to be a boon for all of the business, as the tech giant draws in customers who previously shunned watches, especially the younger millennial market.

“A very significant amount of Apple watches are being purchased by people who don’t wear watches today, representing about 40 percent of sales,” says Levin, citing research figures from CivicScience Inc. “Once people get into the habit of wearing the accessory, they’ll likely add fine watches, Swiss watches and even lift the fine-watch market.”

In preparation, some watch companies are rethinking strategies or pumping up their technology offerings. TAG Heuer, the 155-year-old Swiss watchmaker, is partnering with Intel and Google to create a mechanical watch with tech features. Intel also teamed up with Fossil Group last year to create wearable connected devices in time for the holidays. Bulgari is adding a smartwatch to its lineup that eventually will help the wearer automate calls, open doors and transmit payments.

Traditional brands like Seiko are utilizing technologies to be better stewards of the environment. The Seiko Coutura ($495), redesigned this year, offers the Solar Perpetual Chronograph and Kinetic Retrograde styles – powered by light energy and movement, respectively – with no battery charge required.

And anything loaded with health and fitness sensors doesn’t have to look dowdy. Wearable tech companies such as Fitbit are upping the pizzazz quotient. Last year Fitbit partnered with designer Tory Burch to add accessory wristbands to house the Fitbit Flex tracker, now sold separately at stores such as Nordstrom with designs including the metal-hinged bracelet made of stainless steel. Garmin teamed up with designer Jonathan Adler this year for stylish bands to fit the vivofit and vivofit2 tracking devices.

The versatility of interchangeable bands – also in the non-tech sector – is one way brands can court customers. “Anything where [the consumer is] getting value, getting more in the end is playing well into their wallets,” said Patty Leto, senior vice president and general merchandise manager of women’s and men’s accessories at The Doneger Group in New York.

Sold at retailers such as Macy’s and Nordstrom, Anne Klein is offering a bangle bracelet watch set in rose gold paired with three bracelets ($150) featuring a linked chain, ivory inlay and round, pavé disc. Fossil offers interchangeable watch sets for men and women, including the women’s limited edition Cecile set that comes with bands in stainless steel, a reversible field strap, a blue canvas leather strap and a dark leather strap for $285.

The movement for a blending of jewelry and watches continues as brands turn up the volume in hues and shapes. Armitron ($30 to $35) sport watches that sell at Kohl’s don’t shy away from color, showcasing combinations of gray and purple and navy and green. La Mer Collections offer wrap watches embellished with a host of options from studs to attachments of turquoise heishi stones and gold cable chains. Calvin Klein is adding bracelet novelty by creating wavy patterns in polished stainless steel, curving open links and clean lines of swirling stainless steel. Of-the-moment brand Shinola ($475 to $525), known for its vintageinspired charms, sells double-wrap leather strap watches in a bevy of colors such as slate blue, jade green and dark camel.

Novelty straps also are key trends in the men’s watch market. Casual lines like Tommy Bahama are mixing textures in their watches such as offering navy and green silicone straps as a jaunty contrast to the stainless steel case and bezel of its timepiece at $145. Lacoste’s nylon canvas strap styles in green, red or black sport the iconic croc logo on the strap for $185.

Character-driven watches will continue to beckon kids during the holidays. Sanrio’s Hello Kitty character graces styles, including the Bus Stop watch with a white rubber link band. And, it will be hard to go against the force this holiday season with the arrival of the latest Star Wars movie installment in December, Star Wars: Episode VII – The Force Awakens. Target is offering Darth Vader and Storm Trooper black digital watches. s