Many (or all) consumers complain in watch forums that watches are overpriced. Even watch enthusiasts complain that prices are higher than ever. If watch sales are down for the past 2 years, why don’t the watch companies simply lower their prices? Don’t the laws of supply and demand suggest that when sales are down, prices will fall as well? Here is why watch prices are unlikely to decrease anytime soon.
The Swiss Watch Industry at the precipice…PART 2. The laws in Switzerland used to only require a watch be 50% made in Switzerland. As of 2017, that has been increased to 60% with much controversy and criticism over whether that is the best move for the watch industry. This is a fictional narrative that will be published in two parts that outline the issues surrounding the decision. While the characters are real, this story fictionalizes their role in an otherwise real world scenario using real world facts. Enjoy this case study-style narrative discussing the difficult decisions regarding the increases to the requirements to call something “Swiss Made”.
The laws in Switzerland used to only require a watch be 50% made in Switzerland. As of 2017, that has been increased to 60% with much controversy and criticism over whether that is the best move for the watch industry. This is a fictional narrative that will be published in two parts that outline the issues surrounding the decision. While the characters are real, this story fictionalizes their role in an otherwise real world scenario using real world facts. Enjoy this case study-style narrative discussing the difficult decisions regarding the increases to the requirements to call something “Swiss Made”.
Forbes has announced its latest list of the most reputable companies in the World and Rolex sits at the top.
How did watch prices get so high? The number one response from watch enthusiasts seems to be “greed” – though “maximizing profits” would be the politer way to say it. Looking at the recent history of watch industry growth, I don’t see evidence for pure greed. Instead, I see companies investing in what seemed to them (at the time) like sustained and unrelenting growth between 2005 and 2015. In this article, I will walk you through the increases in watch prices and why they have gone up faster than the rate of inflation. In the next article, I will explain why all of the sudden people aren’t willing to pay those prices anymore.
This is an open letter to all (micro/major) watch producers about watch prices. Too many watches are overpriced for the value they provide. Some deserve and can command the asking price, while many other “me too” watches are overpriced. Please consider these perspectives.
I have had the privilege of speaking with many micro brand founders in all price ranges and varying degrees of success. They are inspiring and many of them I look to for their thoughts and analyses on the micro brand industry. One question I like to ask founders is “who buys your watch?” or “who is your target customer?” I have heard very detailed responses all the way down to “I, for one, would definitely buy my watch” . . .”people that like watches” . . .”we won’t know until we start selling them!”…..
While these are a range of possible answers, they can also signal some pitfalls that can come with launching a watch brand. There are many types of watch buyers out there and every brand should be targeting one type and designing their watch in look, feel, and price to appeal to that customer. Some micro brands know their customer very well and do a great job, while others miss the mark. Below is my summary of the types of watch customers out there. Which type of watch buyer are you?
Swatch Group is suffering from decreased sales and profits while accruing massive inventory levels over the past few years. The company has recently identified non-specific opportunities for growth in 2017 that seem to have little chance of loosening the quickly tightening belt. While Swatch Group’s self-projected sales growth would be nice, growing inventory levels are something that cannot be ignored. This should leave all of us wondering Is Swatch Group being realistic? Here is my op-ed analysis.
The watch industry is a very complex environment. While it is fascinating in the sense that it thrives off selling obsolete mechanical watches, it continues to baffle many watch collectors. I’ve assembled a simple analogy for the industry. This analogy includes the classic brands as well as the newer prestige brands entering the fray, and also micro brands. As an owner of both traditional Swiss watches and micro brands, this analogy brings both into perspective for me. The analogy starts down a road directly to my heart — food…
This is Article 2 of a 4-part series on Design & Innovation. Design is the last meaningful frontier for watch innovation. The rest of the moves towards in-house movements, new materials, and new movements are all tilting at windmills and are being propped up by marketing. In this article, I will explain why most of the luxury watch industry is ’tilting at windmills’ with in-house movements or new material research and surviving off a marketing machine that isn’t sustainable. In the follow-up article I will cover some of the iconic and bold watch designs of history, and explain why design is literally the last frontier. You can read the first article of this series here where I introduced the concept of bold design being a chance to shift consumer preferences.
Will you always prefer Swiss Made? In 2017, Switzerland implements a new law that will change what it takes to be considered “Swiss Made”. I will walk you through my thoughts on what it means to be “Swiss Made”, the brand equity that has, but also explore successful companies such as A. Lange & Sohne who are not Swiss. Swiss Made is the ultimate signature of quality. It is important to know the history behind it and what it means.
Swiss watch companies are facing a tough market with sales down 11% in 2016. RAYMOND WEIL is an affordable Swiss luxury watch company that is continuing to innovate themselves through this period, harkening back to the company’s DNA to look for new inspiration. RAYMOND WEIL and CEO Elie Bernheim have choices to make as they navigate this difficult slump in the Swiss watch market.
Episode 2 How the Swiss ended up as the predominant watchmakers has been the result of a series of choices and fate throughout history. However, contrary to common belief, the Swiss have not always been the dominant force in the watch industry. It has only been post-1877 that the Swiss transformed their methods and were able to compete with the rising American watch producing titans Waltham, Elgin, Hamilton, and others.
The luxury watch industry is in one of its biggest slumps in recent history after experiencing years of unprecedented wealth and growth. Is it a result of the economy? Is the industry dying overall? Will the industry fade away forever? How will companies make it through the slump? Who will emerge on the other side? Over the next two months, we will release a 15-article, three-part series devoted to the following topic:
Disruption? The future of the luxury watch industry