The Future of Watches in a Virtual Reality World
The Intersection of Horology and Immersive Technology
The luxury watch industry has long been a bastion of tradition, craftsmanship, and timeless elegance. Today, as we stand on the brink of a new era, the consumer technology renaissance is poised to reshape the landscape of the luxury goods industry too… and this includes our revered world of watches. Today, we will explore the implications of this shift and opine on the challenges and opportunities which lie ahead. We’ll wrap up with some whacky thought experiments which will probably irritate the purists 😂
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The AI Revolution: A Double-Edged Sword
The rise of artificial intelligence (AI) should cause both excitement and trepidation for the luxury watch industry. On one hand, AI-powered tools could offer huge gains… From improved quality control, to trend analysis and counterfeit detection, and streamlining of design and production processes, to enabling brands’ creativity and innovation. The upside potential is enormous.
“Artificial intelligence is a powerful technology. We acknowledge the value that it can bring as support and complement to human talent, emotions and creativity that are core to our Maisons.”
The flip side of course, is how the rise of AI will undoubtedly raise doubts about the need for human intervention when it comes to the artistry and hand-crafting as part of the production process.
Will the allure of hand finished mechanical watches endure in an age of technology-assisted production? We’ve already seen how much technology has crept into production processes; How much technological input is ‘acceptable’ to luxury buyers? Can design be outsourced to machines? Watch brands continue to grapple with this tension and will need to find ways of harnessing the power of technology without sacrificing the soul of their craft.
The Changing Face of the Luxury Consumer
As the consumer technology revolution unfolds, the profile of the luxury watch buyer may evolve too. Economic factors, such as rising costs of living, may shrink the pool of consumers able to afford high-end watches. At the same time, the growing emphasis on experiences over material possessions could shift consumers’ spending priorities away from traditional luxury goods.
There is also a possibility that AI and virtual reality could create new opportunities for luxury experiences too. If consumers are able to save money by opting for AI-powered travel planning or VR-based entertainment, they may find themselves with more disposable income to spend on high-end watches as status symbols or personal indulgences!
“In luxury retail, customer experience has always been paramount”
Deloitte: “Retail Reimagined: Creating Luxury Customer Experiences Using Data-Driven Insights.”
Remember how much money people stockpiled during the pandemic? What if that became the new norm? It sounds preposterous to many, but there are hordes of people who live in online worlds and with profiteering corporations invested in concepts like the metaverse, this cannot be ruled out.
Watch brands must stay attuned to these shifting consumer dynamics and adapt their marketing and product strategies accordingly. Emphasising the experiential aspects of luxury watch ownership, such as the joy of wearing a fine watch or the sense of belonging to an exclusive community, could resonate with consumers in this new era.
The Power of Storytelling
This brings us to storytelling. As the world becomes increasingly dominated by digital experiences and AI-generated content, the power of authentic storytelling for watchmakers becomes more important than ever before. Consumers will crave the depth, heritage, and human connection that only true craftsmanship can provide.
Watch brands must double down on their storytelling efforts, highlighting the rich histories, artisanal techniques, and emotional resonance1 of their watches. It is staggering to observe how large watch brands with rich histories don’t harness the untapped value in storytelling. Inviting consumers into the world of watchmaking through immersive narratives and behind-the-scenes glimpses should be par for the course, and in doing so, brands will foster a deeper appreciation for their brands.
Collaborations and partnerships with artists, designers, and cultural icons could further enrich these stories by creating unique and compelling narratives that capture the imagination of a luxury consumer - but of course, this is something to be approached with caution. The AP x Marvel collaboration probably springs to mind as a bad example, but there are others which did seem to work well. like this one:
As I mentioned in a recent essay about Romain Gauthier and others, his tagline is the Evolution of Tradition. That phrase is scarily on point! As the consumer landscape evolves, luxury watch brands must do exactly that: strike a delicate balance between innovation and tradition. Even while they embrace the potential of AI and other emerging technologies, brands will need to also remain true to the values which define their histories and the craft. Storytelling will always be the weapon of choice, followed closely by consumer education.
Thought Experiments
What exactly is a dupe? Short for “duplicate,” a dupe is basically a cheaper version of a well-known expensive product. In other words, a knock-off. A Furlan Marri, to the Patek Philippe Tasti Tondi.
For watch enthusiasts, the concept of dupes is all too familiar. Forget Furlan Marri…There’s a decent chance you can find a pretty close lookalike of any number of watches from Richard Mille to fake MoonSwatches on TEMU or AliExpress for a fraction of the price. Of course, the quality won’t be close - but the existence of these dupes suggests that for some buyers, aesthetic-similarity is sufficient.
Gen Z, always on the hunt for a good deal, is dupe-obsessed - most prevalent in the fashion industry, but easy to find elsewhere if you pay attention.
Virtual Watches
If you think about it, virtual reality is basically one giant dupe of reality. Tech reviewer MKBHD posed an interesting question in a tweet earlier this year: