Zenith Price Reduction: El Primero & Elite

Ornatus-Mundi · 2016-03-07T12:07:28Z

Zenith reduces prices by up to 20% on 14 El Primero and Elite references, effective March 2016. Get details on affected models and market impact.

Ornatus-Mundi

WPS member · Zenith forum

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Ornatus-Mundi delivers breaking news regarding Zenith's decision to reduce prices on 14 references across its El Primero and Elite collections by up to 20%, effective March 1, 2016. This report provides a detailed breakdown of the affected models and their new pricing, sparking community discussion on market strategy and consumer impact.

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I was just informed that effective as of 01 March 2016, "with respect to the current economical context it has been decided to reduce and reposition some specific models in the El Primero and the Elite collection". The price adjustments apply to all markets and concern the following watches:

Specifically, the following references are affected (I have the € prices, only, but similar reductions apply to all markets):

36'000 VPH:

Ref. 03.2040.400/69.C494 (El Primero 36'000 VpH 1969; steel, strap) - price old €7,900/price new €6,900 - diff.: -12.7%

Ref. 51.2040.400/91.C496 (El Primero 36'000 VpH; Volcano, strap) - price old €8,300/price new €7,650 - diff.: -7.8%

Ref. 03.2080.400/01.C494 (El Primero 36'000 VpH; white, steel, strap) - price old €8,100/price new €6,900 - diff.: -14.8%

Ref. 03.2080.400/21.C496 (El Primero 36'000 VpH; black, steel, strap) - price old €8,100/price new €6,900 - diff.: -14.8%

Ref. 03.2150.400/69.C713 (El Primero 36'000 VpH 1969 38mm; steel, strap) - price old €7,900/price new €6,900 - diff.: -12.7%

Ref. 03.2150.400/69.M2150 (El Primero 36'000 VpH 1969 38mm; steel, bracelet) - price old €8,400/price new €7,400 - diff.: -11.9%

EP Sport:

Ref. 03.2280.400/01.C713 (El Primero Sport; silver, steel, strap) - price old €9,900/price new €7,900 - diff.: -20.2%

Ref. 03.2280.400/91.M2280 (El Primero Sport; black, steel, bracelet) - price old €10,4900/price new €8,400 - diff.: -19.2%

Ref. 03.2280.400/91.R576 (El Primero Sport; grey, steel, strap) - price old €9,900/price new €7,900 - diff.: -20.2%

Elite Chrono:

Ref. 18.2270.4069/01.C498 (El Primero Classic; RG, strap) - price old €19,600/price new €18,500 - diff.: -5.6%

Ref. 03.2270.4069/01.C493 (El Primero Classic; steel, strap) - price old €8,200/price new €7,100 - diff.: -13.4%

Ultra Thin Men:

Ref. 03.2010.681/01.C493 (Elite; silver, steel, strap) - price old €4,900/price new €4,500 - diff.: -8.2%

Ref. 03.2010.681/11.C493 (Elite; silver (roman), steel, strap) - price old €4,900/price new €4,500 - diff.: -8.2%

Ref. 03.2010.681/21.C493 (Elite; black, steel, strap) - price old €4,900/price new €4,500 - diff.: -8.2%

Thanks for reading,

Magnus

This message has been edited by Ornatus-Mundi on 2016-03-08 12:25:16

Key Points from the Discussion

Zenith's price reduction is a short-term measure to address the current economic context, potentially influenced by the Swiss National Bank lifting the CHF to EUR peg, and aims for quick results rather than a phased model discontinuation.
While price reductions can boost short-term sales by making watches more affordable, there is concern that such a strategy could harm a luxury brand's long-term image and devalue previous purchases for existing customers.
The price adjustments vary, with the new El Primero Sport collection receiving the highest discounts, suggesting a strategic repositioning of certain lines within Zenith's portfolio.
Some collectors express frustration over price reductions, especially if they recently purchased a watch at the higher price, highlighting the emotional impact of such market changes.
The move by Zenith raises questions about whether other luxury watch brands under conglomerates like LVMH might follow suit with price adjustments, signaling a potential shift in industry pricing strategies.

The Discussion

KMII

Mar 7, 2016

Thanks for sharing!

So now we know, which manufacturer decided to lower the prices All that remains is to find out, which will up the content at constant pricing...

Ornatus-Mundi

Mar 7, 2016

A very, very precise and diligent observation - this week I shall be a bit more talkative ;-)) [nt]

Clueless_Collector

Mar 7, 2016

Instead of doing discounts, maybe announced these models may be discontinued by year 20xx.

That will be more positive, right? It may/will drive demand up and they don't have to keep producing less popular series or models and give discounts. As with any news, good for those who are in the market but bad for those who already bought. I always remember I bought my 1st PP and the following year, they dropped prices by 7%, worst ever feeling to purchase a grail watch and met with that, how lucky. Thanks for the news Magnus. Rgds Raymond

Ornatus-Mundi

Mar 7, 2016

You summed it up quite to the spot, however...

You never know when such a decision was made (here: its at least 1 month old ;-)). Thus, reducing the prices might be a very easy to implement short notice measure. I.e. if you are pressured in time and need quick results. Announcing a phasing out of any given reference is miore difficult. You don't know whether this will drive demand. Also, if you just passed a certain threshold which deters customers such measure would not help. And such threshold might just have happend (not intended by Zenit

Danielis1104

Mar 8, 2016

Good marketing strategy? or....

By reducing the price of course it will be more sales, since the watch itself become more affordable. And i do believe they already do a research to put this pricing strategy into action. But in the long term, will this strategy harm the brand image itself? And I totally agree with Raymond about how it will hurt the customer that bought the watch before this announcement. Zenith operate in luxury business, and it will still be better to drive up demand by using another marketing strategies compa

Ornatus-Mundi

Mar 8, 2016

All these implications are certainly a discussion during my meetings with them in Basel...

next week. I am pretty sure they'll have procedures in place to deal with clients who bought just before the price adjustment. I also hope that their long term goals and strategy will become clear to me. Stay tuned! Best, Magnus