A CASE OF LUXURY WATCHES

Mechanical watches. They’re driven by a storyline.

Watch brands seem to fall into two distinct categories. The ones like Patek Philippe, Rolex, Panerai and Hublot who seem tuned into their audience and constantly deliver massive profits and a strong identity. And all the rest.

So what’s the difference?

These smaller players often ape the habits of the successful brands without realising what those brands have done to get there.

They numb a reader with endless trivia about the technical points of a watch without those details ever forming part of a bigger picture. They use a clunky form of mistake-ridden English.

And they neglect the power of social and digital media done well. Most of all they miss out on developing a true narrative and sense of identity for their brand. The cost is many millions of wasted euros on advertising that doesn’t do much for the marque.

But it doesn't have to be this way.

 
 

THE IDENTITY TRANSACTION

 

Storynomics of the watch industry.

Luxury watch makers take a movement and then add story and brand. That raises a $600 watch to a $6,000 watch.

Meanwhile the customer on the other side isn’t really interested in the $600 watch because they can already tell the time with their phone. 

What they want is an identity for when they interact amongst family, friends, and peers.

They consume the identity provided and happily pay $6,000 for a device that symbolises some kind of story that has some resonance for them.

Buyer Rationale

Buyer Rationale

The watch brand puts the story in and the customer takes it out. 

This story element is worth $5,400, the watch mechanism itself is merely the conduit for this transaction.