Market
Ornatus-Mundi's 2016 post on Swatch Group's dramatic profit drop offers a crucial historical snapshot of the luxury watch market. This discussion provides valuable context on how industry downturns are perceived and debated by collectors, highlighting long-standing issues that continue to resonate today. Understanding these past market shifts helps contextualize current industry trends and brand strategies.
For a longer time I have been expecting this and I'm afraid that the slide has just started. I have seen the same to happen again and again in other industries: Strengthening mart leading to increasing prices leading to increasing profits leading to increasing investments to additional capacity leading to lowering quality but always increasing prices. Leading to market Crash. The good news is that such a market collapse is needed. We need better quality and more sensible prices which are related
Profit margins were just insane and unsustainable. In a not so far sector, Apple will know the same trajectory quickly. It is a salutary adjustment even if it will be to the detriment of employees as usual. Do not forget (and it is valid for everything) that the trees do not grow to heaven. Best wishes Alkiro
... the Asia boom has covered it for a while, but there are limits to luxury products, especially when they are long lasting and all important real innovation took place. Less is more, I believe this would be the way forward. Less new models, better care of existing products, fewer output, back to the roots. Re-emphasize the multi brand authorized dealer, cut back on mono brand boutiques. There must be a smarter way to reach the customer... It is such an emotional product, it ideally merges with
Numbers sinking and becoming a buyers market. No silly prices of new watches and no new extra extra insanely prices watches . Evident from the fact that Piaget just launched a polo prices under 10k , Vacheron started a new steel watches line going for sub 15k category, tag Heuer selling tourbys at 15k mark and Lange coming out with an affordable Saxonia line .. Swatch groups action will be judged by new omegas at a lower pricing levels, possible lower price entry for Breguet and blancpain ... Ke
As I already told here, we are privileged people and, sometimes, we do not keep our feet on the ground. Of course making a splendid watch requires time, investment, qualified people... but profit margins in this industry are too high and finally insane. I think the comparison of Kari between a PP and a Ferrari is interesting. Well, the future will tell us how this industry wants to change. Best wishes Alkiro
"Profits down" beats the heck out of "losses." At this stage, it's a reality check but not a catastrophe.
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