Luxury Watch Scarcity: Demand & Collectibility

patrick_y · 2022-10-29T12:07:20Z

Explore the psychology of desirability in luxury watches. Patrick_y and WatchProSite members discuss why Rolex Daytona and Patek Philippe become more coveted when hard to get.

patrick_y

WPS member · Horological Meandering forum

74 replies13940 views1 photos

Patrick_y's thought-provoking post delves into the psychology behind desirability, questioning why consumers, particularly in the luxury watch market, are drawn to items that are difficult to acquire. He explores the interplay of marketing tactics, human competitiveness, and the perceived value of scarcity. This discussion remains highly relevant for collectors navigating today's competitive landscape for coveted timepieces.

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Ok. Let's admit it. When there's a long queue out of a restaurant... We assume the food must be reasonably good, right? Same thing with watches... It seems for most people, the longer the wait-list or the line, the more we want the product. So... When it comes to watches, when there's a waiting list for a Rolex Daytona or a Patek Philippe, that means it must be good right? I mean, logic would suggest that if it's so difficult to procure, it must be good right?

So... Now, watch companies are just intentionally keeping people waiting in line. People who wait longer in line, feel more special when they get the product. Some consumer research studies even show that consumers are even more forgiving on reliability problems when they arise when they feel so special that they were able to buy the piece... Consumers don't want to complain so much - since it was such a privilege to get the watch from their jeweler that they feel compelled to be gracious in return. But had they been able to buy the watch from the store before the watch was very popular and the watch failed, then they would probably be more upset and feel more entitled to complain! "I just bought this very expensive watch last month and it's already broken!"

Maybe it's not about getting the watch? Maybe it's about competitive spirit? One watch influencer and collector recently admitted he was simply competitive "did I mention how competitive I am." It seemed to me that he wanted to catch them all like Pokemon... He further mentions that the value retention of Rolex is a factor. He even mentions that his kids whom would likely inherit his Rolex would likely enjoy flaunting the Rolex. So this competitive flaunting spirit seems to be another part in play of watch collecting - at least for some - understandable since watches are status symbols.

When a consumer asks a jewelry store employee, "how's business." Regardless of how business is, the jewelry store employee typically says business is good. They want to encourage people to buy. Even if business was down 20%, they wouldn't quickly admit this, as they wouldn't want to give a consumer an excuse to not buy. No, they want to create urgency, business is so good, prices may be raised, inventory is low, you should buy now! NOW!

It's a commonly known fact that about ten years ago, a very cool looking sports watch company specifically told its dealers to keep the showcase 20% full, to imply that the product was in high demand and in low inventory. If someone wanted something, bring it out from the back and say, "you're lucky, we just got it in yesterday, it hasn't even been put into showcase inventory yet!" This was done to make the customer feel special and make the customer feel that they were getting a special privilege to buy the watch. There are a lot of tricks in the book...

Hmm... I guess if I were a restaurant owner... Maybe I should hire a crew of beautiful people to stand outside looking like they're queuing. That'll be the ultimate advertisement. I suppose watch companies wouldn't do this, but they could certainly tell clients that there's a long 12 month waitlist, and when clients get that watch in 2 months, they can just be told they were "super lucky." Everyone likes to hear that they're "special" or "lucky."

So... Why do we automatically like things that are hard to get? Status symbol? Competitive spirit? We just really like Rolex Daytonas? Value retention? A convincing sales employee? Those things are also darn good products? A combination of all of the above? What are your thoughts?

Key Points from the Discussion

The phenomenon of desiring hard-to-get items is a modern twist on classic marketing manipulation, where companies use scarcity and exclusivity to drive demand and make customers feel special.
Personal experience can override initial biases; a watch like the Patek Philippe Nautilus, initially perceived as 'strange,' can become highly desirable once tried on, highlighting the importance of personal connection over hype.
The current market often forces quick decisions on rare pieces, contrasting with past opportunities where collectors had ample time to consider multiple options for watches like the Rolex Daytona 116520.
Despite the hype, some collectors remain unimpressed by 'hot' watches like the Patek Philippe Nautilus 5711, Aquanaut 5167, or Audemars Piguet Royal Oak 15202, prioritizing personal taste over market trends.
Even critics of highly sought-after watches, such as the Patek Philippe 5711 'Tiffany' dial, would likely accept the opportunity to purchase one if offered, demonstrating the powerful allure of extreme rarity and status.
The desire for hard-to-get items, particularly luxury watches, is often driven by herd mentality and the societal need for credibility through ownership, reflecting a loss of individuality in taste.

The Discussion

patrick_y

Oct 29, 2022

We just don't like to be told "no."

Maybe it starts from our childhood? When our parents told me I can't have that new LEGO set, since I already had a dozen LEGO sets... Maybe it's that kid-in-all-of-us? Now, I just have to have that LEGO. Now, replace LEGO with Rolex.

myles721

Oct 29, 2022

I think “we” depends…

We as Rolex buyers, PP buyers or Omega buyers? I am an Omega enthusiast not a “collector” and as a kickboxer I was pretty competitive. I don’t feel that way about possessions…I bought my Omegas for me…because I use them in many cases for their intended purpose…not gonna lie when someone says they like a watch I smile. Having said that I have zero interest in what others think except that there are times when a fine watch is expected in certain situations. Lots of pleasure in the piece…zero pleas

patrick_y

Oct 29, 2022

That's fantastic!

I don't think the vast majority of watch buyers and status seekers share your thoughts though. But here on WPS, I think we do have a big portion of people who buy things because they genuinely like it. Not to flaunt, not to invest, etc. But because we genuinely like it!

Uppersouth

Oct 29, 2022

Exclusivity over rarity

We often say, “that model is hard to get” or “that’s a waitlisted watch”. We use these phrases because of the inflated grey market influences that have made these models exclusive by “price” or “relationship”, not rarity. If someone sees you wearing said “hard to get piece”, the flex is that you likely paid over retail to acquire the piece. I promise I’m not a snob, but this mentality and behavior is off-putting to me. I’m happy the watch industry has had a great boost in sales, but do feel they

patrick_y

Oct 29, 2022

I agree! And you're not a snob!

Thank you for posting your thoughts. I'd say that many of the brands have lost a lot of integrity. But I'd also say that many clients are buying for what I consider the "wrong reasons" and that I can't blame the brands for capitalizing upon those clients.

guycord

Oct 29, 2022

I think we do.....But....

I would not buy them.... My current thoughts on the hot watches of the last couple of years….. PP Nautilus 5711. Looks OK but nothing special. I would be proud to wear one but not go out of my way to try and own one. PP Aquanaut 5167. Looks OK but nothing special. I would be proud to wear one but not go out of my way to try and own one. AP Royal Oak 15202. Looks OK but nothing special. I would be proud to wear one but not go out of my way to try and own one. VC Overseas 4500. Looks good, Would o

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