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”.
Today a new British watchmaking company called Bremont is ensuring the watch industry (and consumers) are fully aware that they are restoring England’s lost horological roots. This article will explore both the good and the bad, hopefully by providing a fair and balanced look at this company that has demonstrated incredible growth.
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.
Every month around the 22d of the month, the Federation of the Swiss Watch Industry (also known as the FH) releases the export data for the previous month. The export data serves as a proxy for sales for many analysts. For the month of January 2017, the FH reported another decline in exports. Here is what you need to know.
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?
Swiss watch exports in sharpest fall since financial crisis (Financial Times) — Swiss watch exports fell 9.9 per cent last year, their sharpest drop since the financial crisis, as big markets such as Hong Kong and the US continued to shrink.
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…
Watch price increases seem like they have been out of control. In this article, I resort to some basic principles of economics to look at the watch industry and analyze just how much prices have increased, specifically for Rolex. I have repeatedly said how fascinating the watch industry is — in this case, even exchange rates and inflationary adjustments across borders become interesting. I’ve broken these concepts down into digestible bits that bring these concepts from your Economics 101 class into perspective.
Here is a round-up of the latest watch industry news:
Watchmakers hope for Trump economics rally (Financial Times) — US president-elect has proposed policies that could cut red tape and boost sales.