Dr. Ito's thorough analysis of mechanical watches!! Vol.26 ~ What are luxury watches that do not depreciate easily? ~

Good evening everyone!

This column discusses mechanical watches from an engineer's perspective. For our 26th installment, the topic is:

"What kind of luxury watches retain their value?"

Let's talk about this theme.

Many luxury watches are mechanical watches, possessing artistic or craftsmanship value rather than being mere practical items.

And it is this "enduring value" that is the condition for popular luxury watches.

For a watch brand to be loved for a long time, it is crucial to balance "value as a craft and art" with "quality as a watch." If either is lacking, the watch will not retain its value for decades to come.

However, it is difficult to predict how the watch industry will change in 10 years.

The Quartz Shock, which drastically changed the watch industry with the development of quartz watches, or the current threat of smartwatches, which is said to surpass it... It's difficult to even predict when and what will happen.

However, even amidst such changes, there are indeed popular watches that are likely to maintain unwavering value. By understanding these trends, it is possible to identify "luxury watches whose value will not decline in the future."

Conditions for luxury watches that retain their value

① High Quality

Watches that can retain their value for a long time must possess high overall quality.

First and foremost, functionality. It is extremely important to have high usability, such as durability and water resistance, and high accuracy as a timepiece.

Next essential aspect is artistry.

Not only the beauty of the case and dial, but also the attention to decoration and materials. If the quality as a luxury watch is not high enough, its value will decline.

Only by balancing both practicality and artistry can a watch truly be called a "luxury watch that retains its value."

② Iconic Design

Take the Porsche 911, for example. Things that continue to be highly regarded no matter how much time passes have a history of continuous manufacturing and a certain status that remains unchanged.

This becomes brand power.

Generally, when someone says Louis Vuitton, monogrammed bags and wallets come to mind, and when someone says Porsche, a distinctive sports car comes to mind. In addition to the fact that "many people recognize the name," the ability to recall representative products or models is what constitutes brand power.

In the world of watches, if many people can recall a specific model—or even a specific design—when they hear a brand name, then that brand can be said to possess brand power.

Patek Philippe is synonymous with "Calatrava" and "Nautilus"

Rolex is synonymous with "Daytona" and "Submariner"

Audemars Piguet is synonymous with "Royal Oak"

And this brand power arises fromstatus and history. Old brands that have been around for over 100 years are highly likely to maintain high value in the future.

To generate brand power, it's also important to have a wealth of legends and historical anecdotes.

"Swam across the English Channel," "the oldest watch brand in the world," "loved by nobility and kings"—top-tier watch manufacturers almost always possess such anecdotes, which they skillfully incorporate into their advertising strategies to enhance brand value.

Brands with a brand philosophy strong enough to create legends and historical anecdotes are highly likely to continue to be valued for a very long time.

③ Comprehensive Maintenance System

A watch brand that focuses solely on manufacturing and selling new watches while neglecting its maintenance system may gain temporary popularity, but it has no future in the long run.

Mechanical watches can be used for decades by continuously receiving maintenance. If a watch you've purchased has an inadequate maintenance system—for example, old models cannot be repaired or repair costs are excessively high—watch enthusiasts will lose trust in the brand itself.

Ultimately, to reign as a popular watch brand that is loved for a long time, a comprehensive maintenance system is essential.

This maintenance system has been attracting significant attention in recent years. With the concept of using good quality items for a long time by properly maintaining them, rather than disposable ones, the importance of "a system for long-term use" is increasing for both manufacturers and consumers.

In this sense, "luxury mechanical watches," not made of disposable materials, are truly masterpieces worthy of retaining their value for decades, and even centuries to come.

④ High demand in the vintage market

Luxury watches are highly sought after as pre-owned items, so brands whose discontinued models garner high popularity have a distinct advantage. Even more so for brands whose old watches, known as vintage, are highly valued.

As you may have gathered from reading this far, watches that meet the conditions ①, ②, and ③ are undoubtedly popular in the vintage market.

A brand whose vintage models are popular is a testament to its respected history and comprehensive maintenance. It is likely that the watches currently on the market will also be valued as vintage watches in 50 to 100 years.

Summary

What did you think? 

There are several conditions for a watch brand to be continuously highly regarded for a long time, including the beauty and practicality of a luxury wristwatch, as well as the brand's history and status.

And watch brands that meet these conditions have the potential to maintain the same value for decades, and even a century, to come.

We hope this article has provided you with useful information and sparked some interest in luxury watches! Also, if you have any questions, please feel free to ask us directly, and we will be happy to provide thorough answers. We look forward to your visit and inquiries!

Look forward to the next installment! See you then!