Watch industry times are changing

[Taylor]

http://www.bbc.co.uk/news/business-46822929
An interesting read.

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[RustyBin5]

Good read thanks. With each annual increase in prices I fear for the watch industry. The time will come when these inflation busting increases won’t be stomached and lots of brands will have to start reducing prices to try and woo back customers £. The used watch market has taken off as more and more people realise that for 90% of brands you will save 40% by buying a three month old watch on the secondary market. Thin ice for many companies as we head for Brexit et al and they best tread warily methinks.

[blackal]

Skim-read it, but she seems to make valid points.

All the folk who shout “Rolex should be making more watches” - should look at some of the makes which are being bought back and broken down - to maintain retail prices.

Some companies seem to have got production levels - wrong.

[Itsguy]

Ariel Adams’ thoughts summarised in a few concise sentences - that’s definitely an improvement ;-)

[Rocket Man]

This is pretty shocking:

"Companies can buy back the inventory, but it is expensive. In 2017 Richemont bought back €200m of unsold watches - and destroyed them so they would not be sold at knockdown prices.

Richemont, which also owns the Vacheron Constantin and Jaeger-LeCoultre watch brands, described its buyback strategy as an "exceptional measure" for "exceptional times".

[Chinnock]

High end watchmakers have pushed themselves to the cliff edge. Inflated prices, falling sales and the need to produce less so they don’t de-value their already over priced product.

The future doesn’t look rosy based on their current predicament.

[misterzero]

Interesting article , basically too many overpriced uninspiring watches being produced .

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[VDG]

This is pretty shocking:

"Companies can buy back the inventory, but it is expensive. In 2017 Richemont bought back €200m of unsold watches - and destroyed them so they would not be sold at knockdown prices.

Richemont, which also owns the Vacheron Constantin and Jaeger-LeCoultre watch brands, described its buyback strategy as an "exceptional measure" for "exceptional times".

Nothing to do with insane price increases and stagnated global economy whatsoever.

[Sean89]

I suspect a fair chunk of this stock also ended up on watchfinder. They were bought by Richemont in the last year or so.

I have noticed many of their brands iwc/Cartier etc all new(ish) stock sold without boxes but signed papers