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Why Business And Luxury Watches Meld Together

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The watch industry has been one of the most interesting industries in clothing and accessories since the start of its conception. Luxury watches have always been in the wrists of powerful businessmen, industry leaders, and CEOs. For the last two decades, there has been a change in the business strategies of luxury watches, which still persists today.

The rise of smartphones globally has paved the way for wearable tech to be mainstream. Smartwatches are gaining momentum, not just in sales but in interest as well. Getting a smartwatch today is the trendy thing to do, and the importance of mechanical watches is getting lost on the new generation.

But the world of business and watches have always coexisted. Luxury mechanical watches are the daily drivers of leading titans, as these watches are the top representation of the best of human craftsmanship. But why is business and luxury watches go hand in hand? Here are some reasons:

Luxury watches are investments.

When you are buying a luxury watch, there is the notion that you are investing in something. What that something is, is still debatable. The satisfaction of getting a luxury mechanical watch is intangible, as famous watch brand Patek Philippe’s marketing tagline for almost 20 years go: “You don’t actually own a Patek Philippe. You merely look after it for the next generation.”

Every watch connoisseur worth his word in an inhouse Caliber movement will tell you that buying authentic watches is an investment. And that’s true. Vintage luxury watches from Swiss brands fetch high values in the pre-owned market today, and that’s depending on the time and date of purchase and of course, the wear that you’ve done to the watch.

There’s a lot of money in luxury watches.

The luxury watch industry is a billion-dollar business. The Swiss luxury watchmaking tradition has always been at the top of the industry. And while the industry only makes up for at least 1% of the gross domestic products of Switzerland, it’s a robust and thriving industry that shows no signs of stopping.

There are three major watch groups that dominate the luxury watch industry: Swatch, Richemont, and LVMH. Rolex, on the other hand, isn’t trading stocks as they have been family-owned and funded by a trust since the brand’s conception. That’s why little is known about the brand’s business strategy, which in turn, makes their watches more desirable.

Exclusivity.

All luxury watches are priced so exorbitantly high that only a handful of people in the world are able to get them. Because of this, owning a Rolex or a Patek is a signifier that you’re someone in your industry. At most 20% of the population owns a luxury watch, and a percentage of these people actually don’t have the money to buy themselves the watch itself.

So how do they get their luxury watches? Gifts, favors, and getting pre-owned ones. Exclusivity is one of the most attractive sales points for luxury watches. And the more exclusive something is, the more intense people are going to want it. It’s the classic less supply, more demand business strategy. And the industry has been milking it since the dawn of time.

The watch industry is an industry that will last forever.

What most people don’t realize when they say that luxury watches are over is that mechanical watches will always have a market. Even with smartwatches on the rise. Even with smartphones making them obsolete. People will always want something that’s a representation of human triumph. These watches are made by hand, and in there lies the undying attraction to it.

Going back to the infamous Patek Philippe marketing strategy, getting a luxury watch is something that parents can give to their children, an heirloom, something that can be passed on to generations. And while that means there is no repeat buy, it also means that interest won’t wane for the future generations.

Takeaway

One of the things that you need to look out for when looking for luxury watches is how long it will serve you. The warranty on mechanical watches have declined in the last year or so, as Caliber movements typically only have a 1-year life, without winding. But what you’re getting is a watch that will last forever, if and only if, you take care of it properly.

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