The luxury watch market seems to enjoy perennial success regardless of economic climate. Despite being one of the world’s few items able to command such an impressive price tag, they also benefit from being in constant demand.
Watches have always held a prominent place in society and appeal to people all over the world. Price rarely damages the appeal of a particular watch, but what exactly is it that gives these exquisite timepieces so much value?
Swiss giants such as Rolex, Audemars Piguet and Cartier have adopted a precise and automated approach to impart their mechanical engineering genius into each of their watches, whilst smaller, artisan watch builders still craft each piece by hand. Both are time intensive and utilise the very utmost skill in creation.
These megafactories are no less impressive than the smaller-volume output of the handbuilt watches. When watches need to be produced reliably, quickly and yet still to the most exacting standards imaginable, even the very slightest error can throw numerous projects out of alignment.
When it comes to those handcrafting, the techniques and skills implemented are simply undeniable. In both of these cases, part of what you’re buying when you purchase a luxury Swiss watch is the planning and execution of precision at its most delicate; the end result of the application of human knowledge.
The Swiss watch giants also pride themselves on their own in-house mechanical movements. These movements are often favoured by collectors, and applications of certain movements can sometimes become noticeably more collectible than other manufacturer stablemates.
These big time industry players pour vast sums of money into incredible R&D projects that allow the manufacturer to create more and more of the components necessary in their watches. This, of course, will result in a higher priced watch. For us at Watch Buyers, it is this uniqueness and commitment to advancement that makes up so much of the allure of a Swiss watch.
Even when automated manufacture is employed, many of the individual components are hand-finished. This keeps the level of skilled craftsmanship - delicate work carried out by hand - very high.
In a recent article featured on City AM (which you can read here), it is stated that Patek Philippe showcase this fact better than most. Their Grandmaster Chime watch boasts seven years’ worth of research, design and development and comprises of 1,366 parts. It is this level of engineering - crammed into a wristwatch - that gives watches their premium price tag.
It has also been said by Roger Smith (artisan watchmaker) that developments of even fairly basic movements can cost upwards of £10,000,000. When you consider the money invested into the creation of these wonderful timepieces, their price tags seem exceptionally modest. The beauty of watches is that they are made by watch-lovers, for watch-lovers, and this adds incentive for watches to always evolve and be bettered. Profit margins are often substantially lower per unit than those outside of the industry believe.
Long may the trend continue!