A luxury wristwatch is a great way to show your status, your taste, your style. We all love luxury watches, right? However, it’s a well-known fact that luxury watches can be very expensive. Whether you’re rocking a Rolex or a Casio, they’re both doing the exact same thing – telling the time. Right? But why is a Rolex so much expensive more than a Casio, and you still want to spend your fortune to buy a Rolex?
First and foremost, the brand name will increase the cost because you’re not just purchasing a watch, you’re purchasing a Rolex . Established in 1905, Rolex is known globally as the biggest Swiss luxury watchmaker. Similar to other luxury goods like designer bags, jewellery and high-end fashion brands, Rolex is able to charge its customers more because of the brand it has built up over the past decades. Even buyers who are not watch enthusiasts and who do not fully appreciate the craftsmanship and technical complexities that goes behind producing a Rolex are willing to pay a high price for it.
The material of the watch adds hugely to the price. Luxurious brands use high quality materials, such as excellent steel grade, and/or expensive, fine, precious materials (gold, platinum, diamonds, and jewels, ect). Quality materials also add to the functionality, performance, and quality of the timepiece. They also use expensive, handmade movements within their timepieces, which can add to the high price. Luxurious brands can spend thousands of pounds on one movement, though these are usually found within limited edition pieces.
Luxury watch brands would normally involve more manual labor than say lower end brands, and in some few and exceptional cases, some ultra luxury watch brands, such as Patek Philippe, Audemars Piguet replicas, Vacheron Constantin, etc. might in fact be 100% handmade. The more manual labor that is needed for making a watch, and the longer the watchmaker needs to work on the timepiece, the more the timepiece will cost. And brands with high demand often don’t have enough products for their market, which can increase demand and bottleneck production. For that reason, high end luxury watches yield a slower return on investments. High end luxury timepieces are therefore not an economy of scale, so a premium price needs to be charged per manufactured unit.