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.
While some enthusiasts may not care how much a watch costs and why (a scant few), many of us who follow the industry find it interesting to consider this complex question. This article is intended for those curious about the forces behind the watch industry and would like to examine them with a business and finance perspective… More at A Blog To Watch.
A problem that is concerning for some and wonderful for others. The industry is suffering at the moment and I suspect that will continue for all apart from a few select brands.
Part of the problem could be that consumers look for value these days and are more attuned to understanding if a product is actually worth the money being asked for it. For many many people, the idea of even spending £100 on something that can tell the time is ridiculous.