Do you know the risk of boosting luxury watch prices?

So the big question is: Does it matter? The Swiss luxury replica watch industry is still booming. It is a simple fact that these brands can afford to raise their prices, so they do so. Well, of course, it matters to us enthusiasts. Not all of us are particularly wealthy, and these developments have isolated some of us from the brands that came before us. As important as we find ourselves, we are not important to most watch brands. We are a small part of the most discerning segment of the market and the least generous part of the wallet.  10774_12
But giving up your fan base to cater to the super-rich is risky. What if, at some point, you’re no longer the “it” accessory? Recently, we’ve seen something pointing in that direction. As street robberies become more violent and common, watches lose some of their allure as status symbols. Admittedly, this is a fairly specific phenomenon with a limited reach, so it’s unlikely to really hurt the watch industry. However, it is still a development that could trigger a change in fashion.
The biggest risk, however, is to the mid-range brands. While Rolex and Audemars Piguet continue to move upmarket, they thrive. They can pretty much do what they want to do. But it’s all those “other” brands that are at risk. The brands I mentioned in the section above may not have the appeal to survive in the higher segments they are chasing.
Perhaps it is a process of natural selection. The “chosen ones” are free to move upmarket, while other brands may perish. At the same time, newcomers evolve and naturally fill the gaps left behind. Microbrands, for example, are interesting because they tend to be aimed entirely at enthusiasts. As the big brands pay less and less attention to the watch world, microbrands step in. With their sheer size, they can afford to ignore the affluent consumers on Main Street.
Likewise, newcomers like Czapek can jump into the void left by the iconic integrated strap sports watches. As these replica watches became out of reach even for the wealthy, there was room for Czapek, Parmigiani and others. We can clearly see that in our Fratello community, people are warming up to the newcomers. Not long ago, micro brands and even high-end independent brands were ridiculed by “serious” watch enthusiasts. Many of the more innovative and enthusiast-first watches are coming from this market segment today. That’s why I now feel comfortable launching a VPC for the first time in a segment I previously thought was too high for startups.  10774_1 10774_6

This entry was posted on 13/05/2023, in Rolex. Bookmark the permalink.