SDC Weekly 55; On Quartz Revival; Features vs Products
Vintage Market Plummets, LVMH & Hermès Clash, Rolex Innovates, AK06 Opportunity, JFK’s Omega, AI spewing BS, Cybertruck Vandals, Charisma and more.
🚨 Welcome to another edition of SDC Weekly. Estimated reading time: ~25-30 mins
This week, we explore strange corners… From the declining vintage watch market to the brewing conflict between LVMH and Hermès. We will examine a rare Patek Ref. 130, discover new Rolex patents, and ponder the relevance of features and products in watchmaking. As always, we’ll kick off with a round-up of industry news and other murmurs on the street.
Before we go on, I was reading something which made me wonder… are these SDC Weekly emails getting too long? Here’s a quick poll, pick the response which resonates the most, or leave a comment with longer reflections if you have any. Also feel free to reply to this email if you are unable to vote or log in to Substack.
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Small stuff
Vintage Watch Market Plummeting
Alessandro Ciani shared an article last week which provides an interesting overview of the vintage watch market’s history, current state, and potential future. He’s a seasoned watch dealer, been around for 30+ years, and his views seem worth a read.
Ciani explains the vintage watch market has seen significant fluctuations over the past few decades. It began gaining momentum in the early 1980s, with steady growth for about a decade. During this period, watches transitioned from being viewed as mere consumer goods to valuable collectibles. A small group of dealers dominated the market, often profiting significantly from uninformed sellers.
Around 1990, the market experienced its first major reset. Prices that had been skyrocketing suddenly collapsed. Paradoxically, this reset created opportunities for new dealers and collectors, including himself, to enter the market and access watches that were previously out of reach.
From 1990 to 2010, the market grew steadily again, nurturing a new generation of dealers and collectors. This period also saw a cultural shift in how watches were perceived, transforming them from symbols of wealth and luxury into objects of appreciation for the art of watchmaking and design.
The most recent boom in the watch industry, starting around 2010, was partly fuelled by this cultural shift. It also, however, brought an influx of investors more interested in financial gains than horological appreciation. This led to a market where many buyers expected guaranteed profits, and this drove prices to unreasonable levels.
The current downturn, according to Ciani, is a natural correction to this speculative bubble. He argues that this reset, while potentially harmful to short-term speculators, is ultimately beneficial for the entire watch community. It will likely drive out those who entered the market solely for financial gain, leaving behind passionate collectors and dealers who appreciate watches for their intrinsic value.
Ciani sees the current market downturn as an opportunity for the watch community to refocus on the true values of collecting: appreciation for craftsmanship, design, and the joy of ownership. He suggests this reset will lead to a healthier, more passion-driven market in the long run.
A Grail Patek Philippe Ref: 130
Take a look at this post shared by
(HA) on Instagram:
The 130, is an overwhelmingly chronograph only reference. First starting as a monopusher, it went through numerous designs over its lifespan. However, the displayed watch is also a 130, standing apart featuring not only a chronograph but additionally a simple calendar. It would mark the first time in a wristwatch that Patek introduced the dial configuration that cemented the style of Patek perpetual calendar chronographs as well as the first time they combined chronographs with calendars in a wristwatch. In short, this is one of the most important Patek wristwatches EVER made. It is, in the truest sense, a Holy Grail.
This 130 was commissioned by the Egyptian royal family. It features a sector dial which was typical of 1930s tastes. The dial has a serif heavy font. The dial has undergone quite significant restoration but that’s not something that would take away from a watch as important as this.
Though my photographs are quite poor, it is the first time we are seeing this watch in colour. Previously it was only seen publicly in a blurry black & white photograph in Patek literature.
Here we see the watch shown in Journal Suisse d'Horlogerie in 1942:
The caption incorrectly stated this was a perpetual calendar, which it is not:
"17" hour Universal pocket watch with perpetual calendar. Complete watch with chronograph, minute counter chronograph and perpetual calendar with moon phases."
There’s also another post on Instagram which covers this piece:
This post in particular, references the Crowned “F” as a clue that this might have belonged to King Farouk of Egypt - HA’s post confirms this. What a hobby… Undoubtedly many more rich gems like this, yet to be rediscovered! Many thanks to @niccoloy on Instagram for the assist with resources and references.
Federation of the Swiss Watch Industry - May Update
The Federation of the Swiss Watch Industry (FH) has released its latest report on Swiss watch exports for May 2024, revealing a slight decline in performance. The data consolidates export results from all Swiss watch companies, and it indicates a continuation of the downward trend observed since the beginning of 2024.
For May, Swiss watch exports totalled CHF 2.3bn, representing a 2.2% decrease compared to May 2023. Despite this decline, the sector has already exceeded CHF10bn so far, but this figure is 2.5% lower than the record level reached last year.
The decline in exports was driven by several factors, including a 7.6% drop in the value of steel watches and a decrease in the total number of watches exported by 60,000 units (-4.2%). The category of “Other materials” saw a decline of 6.7%, while steel watches experienced a 2.8% decrease in units exported.
The core segment, consisting of watches with an export price above CHF 3k, remained steady with a 0.7% increase Y-o-Y. In contrast, the CHF 500-3k range declined by 16.1%. Watches priced between 200-500 francs increased by 2.8%, and watches below 200 francs saw a 2.3% decrease in units exported.
The USA, the largest export market, remained roughly flat Y-o-Y with a 0.5% decrease. Asia tanked hard; China (-18.0%) and Hong Kong (-22.7%) recorded significant declines, basically continuing the trend observed in recent months. Other markets, such as the United Kingdom (-1.5%), Germany (-5.5%), the United Arab Emirates (-1.7%), Italy (-3.3%), and Spain (-4.9%), also saw negative trends, albeit less pronounced.
On a positive note, some markets experienced increases, with Japan (+5.8%), France (+17.9%), Singapore (+4.5%), and South Korea (+16.2%) showing particularly strong growth.
Here’s the report if you’re interested:
wrote about the report here. He highlights the ongoing slowdown in China and Hong Kong, attributing it to factors such as a downturn in real estate values and weakened consumer sentiment.
On the subject of China, Geneva’s Watches and Wonders is having difficulty getting brands to commit to an event in Shanghai at the end of August. They had 14 brands last year, but this is expected to drop significantly, and become primarily a Richemont-brand event. Rolex isn’t attending - despite the Rolex CEO being the chair of the W&W foundation!
Bezel - Call for Transparency
Last week, this watch was supposedly sold on Bezel for $137,500 as shown above. The problem we will discuss today, arises after the auction. The link for the completed listing redirects to this product page in their marketplace, where it is listed for $188,890:
The problem, at face value, is they’ve taken a watch which has supposedly sold in an auction, showed a ‘winning bid’ and immediately relisted the same watch at 50k more with the same images. This came up on a private collector group, and was immediately chastised as fraudulent, most of all because they were showing lots which had closed without meeting the reserve, and then removing these from the list of closed auctions. Luckily, someone in the group has direct contact with the people running this website, and they responded as follows:
“If sellers list a watch at auction they have the option to set a reserve price (many of the watches are listed without reserves) and if their reserve price isn’t met, the seller may choose to list it on the marketplace. We don’t at all market any of the results for auctions that do not sell. If people would prefer we make that more clear, happy to chat about it. Auctions is still a new part of the product, so we’re constantly iterating on it to find the best solution here. We certainly don’t want anyone to feel like there’s something fraudulent or manipulative going on at all. We just started scaling up auctions to dealers with reserves so that language is being replaced with “bid to” vs “winning bid” to make it clear that something did not meet the reserve price. Email has already been updated and the product changes will be updated in the next push.”
Fair enough. So there’s no outright fraud or intent to mislead. That said, there is also a lack of willingness to be as transparent as possible. The language being replaced with “bid to” vs “winning bid” could really just say “Bidding closed at $X, reserve not met” - how difficult is that? 😂
Final point is on the lack of transparency with completed auctions which do not show lots which didn’t meet the reserve. The Patek shown above demonstrates this; you cannot find this closed auction. Bezel’s argument in the reply above, is this watch was ‘automatically relisted’ once it didn’t meet the reserve - but the record of this auction closing without meeting reserve is basically lost, unless you have screenshots like the one above. In this game, transparency goes a long way, and though I am not claiming any malicious intent, I do think if they do not fix these basic issues, then it would imply they are willingly obfuscating the results, which would be a shame!
Auction results
Bonham’s auction last week failed to sell a Journe Resonance from 2008 for the reserve of £120,000. A few others didn’t sell, and there were only 65 lots so worth having a browse for yourself!
Chronographe Rattrapante vs Tokyo Anniversary Chronographe FB
A gentleman named Jay Roy produced this interesting comparison between the aforementioned Journe watches - shared here with permission, via a mutual friend. (Thanks Mr. G!) A few interesting takeaways to note:
44mm vs 40mm - How the watches would wear the same, given one has no lugs
How Journe rotated the inner screwed ring to make space for dial design elements
How the bottom lug on the new piece seems to be shorter than the top lug
Always appreciate random geekery about watches, I hope you feel the same.
Akrivia AK06 Opportunities
K2-Luxury listed this AK 06 for ~£500k, but I understand there are currently 5 pieces being marketed for sale by various parties. Of these, four are steel with grey dials (like the one listed by K2) and one of the five is a gold-dial titanium piece. Here’s another at Analog Shift (asking US$800k) and there’s one more in Singapore IIRC1 but no idea on price.
This Piece Unique sold for around the same price in November 2023, and HDH sold one for $550k in mid-2023. Given these watches retailed for below $90k2 and there are so few in existence, YMMV3!
ScrewDownCrown is a reader-supported guide to the world of watch collecting, behavioural psychology, & other first world problems.
The Watch War: LVMH vs Hermès
Aside from the renewed speculation that LVMH might be eyeing a takeover of Richemont, a new conflict is brewing in the luxury industry, reminiscent of the previous takeover battle between LVMH and Hermès that occurred a little over a decade ago. This time, the battleground is the world of haute horlogerie, with both luxury giants vying for control of a watchmaking hub.
The catalyst for this potential “watch war” is the sale of Vaucher Manufacture Fleurier, the Parmigiani watch brand, and other suppliers that form part of a watchmaking hub. As we discussed in February, these assets are up for sale by their current owner, the Sandoz Family Foundation. The sale has attracted attention primarily from LVMH and Hermès, with Richemont also expressing interest (with less enthusiasm due to its existing production capacity and strong supplier relationships).
The sale process is apparently underway according to Miss Tweed, with executives from LVMH, Hermès, and Richemont having met with the management of the businesses on offer. Industry sources suggest initial bids are expected to be submitted this month, with hopes of a deal being announced before the end of the summer. Deloitte is advising the Sandoz Foundation throughout this process. The sale also includes Parmigiani, but it is complicated by the fact that it doesn’t own the intellectual property of its movements - these belong to Vaucher!
Hermès appears to be in a strong position, given its existing 25% stake in Vaucher. They’ve invested significantly in Vaucher since becoming a shareholder in 2006 - with investments reportedly exceeding €120 million. Moreover, Hermès apparently holds the right of first refusal to purchase the remaining shares in Vaucher, so unless LVMH overpays, I don’t see this going elsewhere.
Guillaume de Seynes, a member of the Hermès family who oversees their watchmaking investments, has publicly expressed interest in acquiring the whole company. For Hermès, Vaucher is more than just a supplier; They are a crucial part of the brand’s watchmaking business. Vaucher is a reputable manufacture which lends legitimacy to the brand’s range of watches - perhaps more so than LVMH’s La Fabrique du Temps (which might explain their interest).
LVMH interest in Vaucher and the broader Sandoz watchmaking hub has raised concerns not only for Hermès but for other players in the industry as well. Companies like Audemars Piguet and Richard Mille, who are also customers of Vaucher, appear to be wary of LVMH gaining control. Similarly, Patek Philippe and Chopard, who hold stakes in Atokalpa and Elwin (other companies within the Sandoz hub), are wary about LVMH sniffing around.
This situation has, according to Miss Tweed, led to the formation of a potential consortium to oppose LVMH’s bid. The alliance would include Hermès, Audemars Piguet, Richard Mille, and possibly Patek Philippe and Chopard. Many in the Swiss watch industry supposedly feel more comfortable with Hermès’ approach, which is focused on securing its supply chain and growing its watch business, rather than LVMH’s aggressive expansion, and potentially anti-competitive approach.
In 2023, Hermès’ watch sales reached €611 million, up 23% at constant exchange rates and outpacing the brand’s overall growth. Even in a declining market, Hermès managed to achieve 4% growth in watch sales in the first quarter of 2024. The company produces around 75,000 watches annually, and have been introducing more sophisticated timepieces, such as the new Unisex Hermès Cut and the Arceau Duc Attelé, a triple-axis tourbillon with a minute repeater priced at €345,000!
As we’re already aware, LVMH has its own ambitions in the watchmaking sector. Frédéric Arnault, CEO of LVMH’s watchmaking division is actively seeking ways to increase production and improve the quality of movements, particularly for TAG Heuer. The group has already collaborated with Vaucher on high-end pieces like the £121k Monaco Split-Seconds Chronograph. Additionally, Frédéric Arnault’s brother Jean Arnault, is overseeing watches for Louis Vuitton and handling the relaunch of the Gérald Genta and Daniel Roth brands. Just yesterday in fact,
reported on LVMH buying the high-end Swiss clock manufacturer L’Epée 1839 (Terms were not disclosed).Obviously Hermès and LVMH both have the financial resources to pursue this acquisition, with Hermès holding over €10 billion in net cash and LVMH having €7.7 billion as of the end of 2023. The outcome of this “watch war” could significantly reshape the landscape of Swiss watchmaking, because it affects more than just the main contenders, but many others who are linked through the supply chain.
Enough small talk… Let’s dig in.
ScrewDownCrown is a reader-supported guide to the world of watch collecting, behavioural psychology, & other first world problems.
⌚ On Quartz Revival
Last week I wrote:
and I had a lengthy discussion, which started in the comments of the post but moved onto WhatsApp and eventually to a phone call. The whole exchange felt interesting enough to make me want to say more… The only question is, where to begin?! 😅Robin Swithinbank suggests it is time for luxury brands to embrace the potential of quartz to sell more watches in this era of belt-tightening. What a spectacularly sh*t idea! 😂
To set the scene, perhaps I’ll start with an ‘exam question’ as follows: As market forces exert pressure on brands to maintain sales and profitability, what must be considered while they grapple with the quandary of embracing quartz offerings whilst having to safeguard brand prestige? First, some analogues.
The Elegante
F.P. Journe’s Elegante is possibly the biggest testament to the potential harmony between quartz and high-end luxury watchmaking. Despite its battery-powered heart, the Elegante has managed to captivate collectors, with long waitlists which don’t seem to affect the brand’s lustre as a haute horology heavy hitter. The Elegante perhaps serves as a gateway for aspiring Journe aficionados, and despite being quartz, offers a taste of ingenuity which is what Journe collectors tend to expect.
That said, the path trodden by Journe is not easily replicated. The success of the Elegante didn’t come overnight, and the Elegante’s rise to popularity came after Journe had established his reputation among discerning collectors. For other brands, the introduction of quartz models will likely not be met with the same enthusiasm.
Other options
Omega and Breitling, have also ventured into the realm of quartz with the X33 and the Aerospace. While these watches have found their niche among professionals and enthusiasts, they have never achieved the same level of reverence as their mechanical counterparts. They are, what we might call, specialist pieces for those in the know, or for the contrarians who value function over form, and who take pride in being different. These are great watches, but do not serve as beacons of hope if brands are hoping to use quartz to pump up their sales volume.
The Artisanal Craftsmanship Debate
The luxury watch industry prides itself on the artisanal craftsmanship and technical expertise that goes into creating their mechanical watches. Most of their storytelling, which feeds into their brand value and luxury appeal, stems from their commitment to horological tradition and innovation in the creation of mechanical watches.
Introducing quartz ranges may be perceived as a departure from this heritage. Purists will argue that the soul of a luxury watch comes from the movement being mechanical, and that quartz movements, while accurate and reliable, perhaps lack the characteristics to allow the wearer to develop an emotional connection to the watch. Some Grand Seiko enthusiasts and other quartz purists would disagree - and while they would undoubtedly put forward excellent arguments, these likely do not hold true for the masses; The same masses who would be expected to buy quartz watches to boost sales!
The Power of Brand Separation
Max Büsser, the founder of MB&F, provides a compelling case study in brand separation. By creating the M.A.D.1, a relatively cheap watch bearing the MB&F DNA, Büsser successfully catered to a broader audience without compromising the exclusivity of his primary brand. The M.A.D.1, priced at ~CHF 3,000, allowed enthusiasts to own a piece of Max’s MB&F magic without diluting the MB&F brand’s core identity of being a 6-figure piece of mechanical art.
Along similar lines, the collaboration between Omega and Swatch, the MoonSwatch, demonstrates the potential of strategic partnerships. By leveraging the iconic Speedmaster design and the accessible Swatch brand, the MoonSwatch captured the hearts of collectors and casual enthusiasts alike, becoming an instant sensation.
‘By Parent Company’ Hypothesis
Could big brands like Omega replicate the success of the MoonSwatch by creating their own ‘cheaper version’ of watches, but quartz? This would be under a different brand name of course… Consider what I call the ‘By Parent Co’ approach...
Studies in consumer psychology have shown that brand extensions are more successful when there is a clear fit between the parent brand and the extension (Völckner & Sattler, 2006). MB&F is whimsical - the M.A.D.1 is also whimsical, just cheaper. It works.
Earlier research supports what logic would suggest is true anyway: the perceived quality of the parent brand plays a crucial role in the success of brand extensions (Aaker & Keller, 1990).
So, the idea would be for say, Omega, to create a separate identity for a bunch of new quartz offerings, under a new brand name - but it would be ‘By Omega’ just like the M.A.D.1 is ‘By Max Busser.’ This way, Omega could potentially tap into a new market segment without compromising the prestige of its core brand.
As a brand, Omega represents reliability and quality, and also benefits from excellent associations such as James Bond and Moon Landings. They could come up with two brands, or budget product lines, which are the quartz equivalent of the Seamaster and Speedmaster. They would be quartz-powered, but still be associated with Omega and sold in Omega boutiques and retailers. This approach already works well for Rolex with Tudor, why would it not work for others4?
Historical precedents exist elsewhere too; Think of Toyota’s success with Lexus and Nissan’s progress with Infiniti. These are compelling examples of how brand separation can be executed well, as they have successfully navigated the balance between accessibility and exclusivity, catering to different market segments while preserving the integrity of the flagship brands.
The Collector’s Perspective
Luxury watch collectors are a discerning and passionate group, often driven by a deep appreciation for the history, innovation, and craftsmanship behind their timepieces. For many collectors, the allure of a mechanical movement lies in its complexity and the sense of connection to the watchmaking tradition. Most of you readers will fall into this group.
Introducing quartz offerings may be met with skepticism or even resistance from you lot. Collectors may view quartz as a dilution of the brand’s heritage and a departure from the values that drew them to the brand in the first place.
The thing is… As the MoonSwatch demonstrates, there is also a (much larger) segment of watch buyers who appreciate the accessibility and playfulness of quartz offerings. The key is to strike a balance between catering to the preferences of die-hard mechanical watch enthusiasts and appealing to a broader audience seeking more affordable options.
The Role of Scarcity and Exclusivity
Scarcity and exclusivity are also fundamental drivers of desire in the luxury watch market. Limited editions, rare complications, and waiting lists all contribute to the allure of high-end watches.
Introducing quartz offerings, which can be produced more efficiently and in larger quantities, will absolutely erode the perception of scarcity and exclusivity associated with a brand. Luxury watch brands will need to carefully consider how to maintain an aura of exclusivity while expanding their product range.
This is why I am more in favour of using a different brand, but associating it with the parent brand. Off the top of my head, if they called it ‘Alpha’ or ‘Zeta’ by Omega, and marketed the hell out of it with their usual celebrity endorsements and potentially taking a new approach via TikTok marketing and appealing to less affluent customers, could this actually be a success?
The Psychology of Luxury Branding
The decision to introduce quartz offerings must be considered in the context of the psychology of luxury branding. Research also highlights the importance of maintaining a sense of exclusivity and rarity in the luxury market (Kapferer & Bastien, 2009). Brands like Hermès and Ferrari have built their reputations on scarcity and uncompromising quality, and they have resisted the temptation to introduce cheaper alternatives.
Luxury watch brands still need to carefully weigh the potential benefits of quartz offerings against the risk of eroding their brand’s prestige. A study by Dubois and Paternault (1995) found that increased brand awareness can actually lead to decreased purchase intent for luxury products, as the perception of exclusivity is diminished.
Brands considering quartz offerings basically need to find ways to maintain a sense of exclusivity and rarity, even at lower prices. This can potentially be achieved through limited editions, unique designs, or collaborations that create a sense of scarcity and desirability - but I think the key will be extreme differentiation in their marketing strategies. I know I suggested celebrity endorsements earlier, but perhaps that is the wrong answer. Maybe it is more a matter of completely differentiated marketing - with Omega to the wealthy clients, and the new brand targeted only at the new audience.
A Balancing Act
Ultimately, the decision to embrace quartz movements in the luxury watch industry would be a delicate balancing act. Brands must weigh the potential benefits of increased sales and market share against the risks of eroding their hard-earned prestige and alienating their core clientele.
The quartz choice is not a one-size-fits-all proposition. Each brand needs to assess its own identity, heritage, and target audience before embarking on a quartz adventure. For some, like F.P. Journe, it was a path to new horizons with female collectors. For others, it may be Pandora’s box, best left unopened. Weirdly, I get the impression that the brands which need a new line of quartz watches to boost sales, are the brands which will likely not have much success!
Conversely, I think if Richard Mille, Patek Philippe or Rolex launched a cheap quartz watch, it would be sold out instantly. This intuitively makes sense to me, but I will admit I don’t understand the market for mid tier watches anyway, so what do I know?
I stand by my statement at the beginning… Robin’s idea was spectacularly sh*t! 😂 This is because the brands who need it most, will likely not succeed enough to warrant doing quartz without ruining their brands in the long term.
Change my mind, I am open to it!
💡 Feature or Product?
In a recent video, tech YouTuber MKBHD raised an intriguing question about artificial intelligence: Is AI a feature or a product? This dichotomy, inspired by Apple’s recent WWDC announcements, provides what I think is a fascinating lens through which we can examine not only the tech industry… but also haute horology!
The Tech Perspective
MKBHD points to Apple’s approach at WWDC as evidence that AI might be more of a feature than a standalone product. Apple has integrated AI capabilities throughout its operating systems, from writing assistance to image generation, making these tools readily available within existing apps and interfaces. This approach contrasts with dedicated AI devices like the Humane AI Pin or the Rabbit R1, which position AI as the core product.
The “feature vs. product” debate isn’t new in tech. MKBHD recalls the rise and fall of Clubhouse, a dedicated live audio platform that saw its core functionality replicated as features within larger platforms like Twitter, Slack and Discord. This pattern suggests that innovative standalone products often risk being absorbed as features into larger ecosystems.
He did note, there were exceptions too… TikTok, for instance, has maintained its dominance despite similar short-form video features being integrated into platforms like Instagram Reels and YouTube Shorts. Snapchat, too, has survived the widespread adoption of its “Stories” feature by other social media giants.
Extending the Concept to Haute Horology
The debate takes on an interesting dimension when applied to the world of high-end watchmaking. Let’s examine several aspects of watches through this lens:
Thinness: Feature or Product?
Thinness as a Feature:
Many luxury watch brands incorporate thinness into their designs as one of many desirable attributes.
Thinness often complements other features like complications or aesthetic elements.
For many consumers, the thinness of a watch is appreciated but not the primary reason for purchase.
Thinness as a Product:
Some brands, like Piaget with its Altiplano line, or Bulgari with the Octo Finissimo, have made ultra-thin watches their signature product.
These watches often break records for thinness, becoming talking points in and of themselves.
Collectors might desire these pieces specifically for their extreme thinness, perhaps valuing the ‘engineering accomplishment’ they embody.
Unusual Case Shapes: Feature or Product?
Unusual Shapes as a Feature:
Many brands offer non-round watches as part of a diverse collection.
Unique shapes can complement an overall design or theme.
From what I have observed, an unusual shape is usually an appealing aspect and often the sole reason for purchase when it comes to really unusual shapes.
Unusual Shapes as a Product:
Brands like Anoma or even Richard Mille, have made distinctive shapes core to their brand identity.
These shapes become instantly recognisable, almost like a brand in and of themselves, or at least, becoming a ‘signature’ for a particular brand.
Some collectors will desire these pieces primarily for their unusual aesthetics, regardless of other features.
Complications: Feature or Product?
Complications as Features:
Many watches incorporate complications like chronographs, moon phases, or complicated calendar displays as additional features.
These complications enhance the functionality and appeal of the watch but aren’t necessarily the main selling point. I have never found a person who decided not to buy a watch because it lacked a moon phase display, for example.
Complications as Products:
Watchmakers like Konstantin Chaykin with his Mars Conqueror MK3 Fighter or Patek Philippe with their Ref. 6002 Sky Moon Tourbillon have created watches where the complications are the primary focus.
These watches are often limited editions and sought after specifically for their extremely complicated movements.
Materials: Feature or Product?
Materials as Features:
Most watches use materials like stainless steel, gold, or titanium as part of their overall design.
The material choice contributes to aesthetics and durability but isn’t typically the main selling point.
Materials as Products:
Some brands have made specific materials their signature, like Journe’s CB in tantalum or Richard Mille with its use of exotic materials like carbon TPT.
Watches made from unique materials like meteorite or containing fossilised dinosaur bones are often marketed primarily based on their material composition.
Movements: Feature or Product?
Movements as Features:
Most high end watches incorporate mechanical movements as a necessary component, with varying degrees of sophistication and finishing.
For many consumers, and given the prior discussion on quartz this doesn’t need repeating - the mechanical movement is important, but not the primary reason for purchase other than it being mechanical.
Movements as Products:
Some watchmakers, like Rexhep Rexhepi or Dufour, place such emphasis on their movements that they become the primary selling point - this is down to finishing.
Others, such as Journe, place emphasis on the technical ingenuity, which is not available elsewhere.
Collectors often seek out watches with specific movements, valuing them for their engineering, finishing, or historical significance.
Limited Editions: Feature or Product?
Limited Editions as Features:
Many brands release limited edition versions of their regular models with slight modifications.
These editions add exclusivity but are often based on existing product lines.
Limited Editions as Products:
Some limited editions, like certain Omega Speedmaster models or Patek Philippe commemorative pieces, become highly sought-after products in their own right.
These editions often have unique designs or complications that set them apart as standalone products.
I may have forgotten some points too - If you think of other similar aspects of differentiation, please let everyone know in the comments below.
The Verdict
The distinction between feature and product is even more nuanced with watches than in the tech industry. Watch elements can seamlessly transition between being features and products, often depending on the brand’s positioning, the specific model, and the target market.
Some brands have successfully turned what are typically features, into core products. Bulgari with ultra-thin watches, Richard Mille with exotic materials and shapes, and Journe with innovative new movements, have all created distinct identities around elements that are features for other brands.
Conversely, even brands known for specific “product-like” elements incorporate them as features in a broader lineup. For instance, while Journe is known for making thin watches, this is just one feature of his diverse collection.
The success of either approach in horology seems to depend on several factors:
Brand Identity: How well the feature-turned-product aligns with and enhances the brand’s overall identity.
Innovation: The degree of innovation and uniqueness offered by the feature or product.
Craftsmanship: The level of skill and artisanry present in the products.
Market Demand: How well the feature or product resonates with collectors and enthusiasts.
Brand Power & Marketing: How the brand is perceived, its cultural status and associated value, and how effectively the brand communicates this value.
Replicability: How protected the feature is from being copied by other brands.
Unlike in the tech industry, where features often get absorbed into larger ecosystems, the watch industry seems to thrive on the tension between features and products. This dynamic drives innovation, encourages specialisation, and caters to a diverse range of collector interests.
Ultimately, the most successful brands will be those which are able to create watches that are compelling as complete products whilst also excelling in specific features that can stand as focal points in their own right. This approach not only satisfies a wide range of consumer preferences but also pushes the boundaries of watchmaking as both an art and a science.
This might feel like a cop-out conclusion, but there is no better one. As an example, consider the role of brand power in outlining the features of a watch. Rolex can continue to make and sell-out a time-only Submariner, which continues to trade above MSRP, only because of the brand power they have. Rolex therefore offers something of value to the buyer, which any other brand cannot claim to offer. This status-conferring aspect of Rolex watches is a feature which others cannot offer. It says something about the wearer, whether they like it or not. On the other hand, the Rolex Daytona is a good product example - it still exhibits the aforementioned features of a Rolex, but the higher demand for this model is very much product-specific. So in light of that example, sure, you might argue the lines are blurry between the definitions of features and products, but the conclusion remains the same, right?
📌 Links of interest
🆕 This new Rolex patent shown above seems to be for a new type of articulating end link, but there’s also this new bezel patent and this new transmission mechanism patent which you can explore if you have time.
🟢 The Omega JFK wore on his first day as president is also, it seems, the last watch he ever wore.
😮 “Swatch has no competition” in its Swiss-made watch segment - Damiano Casafina, CEO of ETA. Bold claims, if you’re looking to antagonise anti-competition lawyers!
😥 Christie’s hit with class action lawsuit over exposure of clients’ personal data in cyberattack.
🏦 Sotheby’s Relocates French Headquarters to Former Home of Famed Paris Gallery.
📉 S&P Slashes Sotheby’s Rating Into Deep Junk Territory. Read also: Standard and Poor’s Downgrades Sotheby’s Credit Rating to B-.
🐮 The Rolex Air King that Became a Field Watch.
💑 The $5 billion dating app industry is seeing downloads across the industry falling. Here’s how some apps are shifting to stay competitive, with features that go beyond just dating. (9 Min video)
👿 Dozens of Tesla Cybertrucks vandalised by someone who really doesn’t like Elon Musk.
🛰 Starlink Mini brings space internet to backpackers. What an outstanding product!
🖼 What Michelangelo’s late-in-life works reveal about his genius – and his humanness.
🤖 For the entire 20th century, it had felt like telepathy was just around the corner. Why is that especially true now?
🐘 African Elephants May Call Each Other by Name
🕵️♀️ A WIRED investigation shows that Perplexity, the AI-powered search startup which Forbes has accused of stealing its content, is surreptitiously scraping sites and making things up out of thin air!
🥵 Why you feel grouchy on super hot days? How extreme heat affects mental health.
🌦 Climate Zones: How will your city feel in the future?
😇 Rob Corder, the indefatigable head at WatchPro, graced us with another treatise on the watch world. Gone are the days of the post-pandemic watch boom; We find ourselves in a settling market, as the brands figure out how to pivot their strategies. Rob thinks the name of the game in 2024 is high-low. Brands are supposedly focusing their efforts on the entry-level pieces that bring new blood into the fold, while simultaneously trying to entice collectors with ultra-premium offerings. The mid-market, the once-comfortable 3-10k price range, supposedly finds itself in a precarious position, caught between these two extremes.
End note
In case you missed them… here are two posts I shared last week:
We often think of being human, being alive, or being immortal as “yes or no” questions. I recently read a piece about how we should see these more as volume knobs we can turn up or down as we live our lives.
Take being human. It isn’t just about having opposable thumbs or walking upright. It is about the uniquely human things we actually do. When was the last time you got lost in a good book, had a deep conversation with a friend, or created something with your hands? These moments don’t just pass time - they turn up the dial on your humanity. On the flip side, mindlessly scrolling through social media or going through your day on autopilot? That would be turning down the volume on humanity.
Being alive is more than having a heartbeat. Think about those times when you really feel alive - maybe it’s swimming in the ocean, laughing until your sides hurt, or overcoming a challenge you thought was impossible. Your senses sharpen, your heart races, you feel fully present. That’s when you are truly alive. And those days when you’re on autopilot, barely noticing the world around you, going about your daily routine... are you even alive?
Immortality is an interesting one, because it has a clear definition and happens to be the most metaphorical of the three - Here, it isn’t about literally living forever, and ore about the mark you leave in this world. Whenever you teach someone a skill, stand up for what is right, or create something which will outlast you, you’re turning up your immortality volume. Each small act of kindness or moment of inspiration you provide to others sends ripples through time. If you’re focused solely on yourself, leaving nothing behind? That would be the ‘immortality volume’ being turned down to zero.
The beauty of seeing these aspects of existence as spectrums is that it puts a lot of power in your hands. Every day, in small ways and big, you’re adjusting these dials. You aren’t stuck at any one setting. Had a day full of mindless admin? Tomorrow you can choose to engage more deeply with the world around you. Feeling more dead than alive? You can decide to purposefully seek experiences which will awaken your senses and spirit.
It will never make sense to max out all these dials, at all times - that would be exhausting and probably impossible. It is more about being aware that you actually have these controls, and then making conscious choices about where you want the settings to be. Some days you might crank up your aliveness by going on a skydive. Other days, you might focus on your humanity by showing compassion to a stranger. For me, having children was a revelation in the context of immortality. What greater way to leave a mark on the world, than to raise a human to do good, to be kind, and to add value and positivity to the world we live in?
Remember, there’s no perfect setting for everyone. Your mix will be uniquely yours. The key is to keep adjusting, keep exploring, and keep growing. In the end, life was never about reaching a final state of being human, alive, or immortal. It has always been about the journey of becoming more of each, in your own way, every day.
Until next time,
F
😊 Bonus link: How to Become More Likable Using 9 Techniques From the World’s Most Charismatic People
Polina Pompliano breaks down lessons from charismatic folks including Dwayne Johnson, Dolly Parton, Jamie Foxx and Matthew McConaughey.
You can read all the tips here - a few teasers:
They set the energy when they walk into a room: “How do you enter a room? Are you nervous and frenetic or are you calm and confident? Do you pay attention only to the person you’re trying to impress or do you take the time to greet everyone around? The way you enter a room can set the tone for a first impression whether you’re on a date, a job interview, or a business meeting.”
Say people’s names — a lot: “The magic of saying someone’s name is that it immediately puts you on their side. Even if they aren’t quite listening, they turn to you every time they hear their name. It elicits feelings of affection, closeness, and respect. As Dale Carnegie once said, ‘Remember that a person’s name is to that person the sweetest and most important sound in any language.’”
They anticipate the joke — and tell it better: “Dolly Parton is a master at beating the bullies at their own game. When most people get poked fun at, they get offended or counter-punch with an aggressive statement. Parton manages to create a boundary while making you like her even more. Here’s how: Anyone can make fun of Parton, but they can’t shame her. Why? Because she will not let them. [Parton says] ‘I know what they’re thinking. So I’d rather say it before they do, so we get that off our chest.’”
Believe it or not, that “❤️ Like” button is a big deal – it serves as a proxy to new visitors of this publication’s value. If you enjoyed this post, please let others know. Thanks for reading!
IIRC: abbreviation for “if I recall correctly” or “if I remember correctly”
Retail prices: AK-06 Steel $85,000 // AK-06 Titanium $89,000
YMMV: abbreviation for “your mileage may vary” - used to mean that you understand people may have a different opinion or experience to yours.
I appreciate Tudor is now its own company, and even has its own Kenissi manufacture, but remember how it started? Even had the same Rolex cases and crowns - only the movement was cheaper.
Questions to ponder: are there watches that are great products without any great features? Think of a basic Seiko diver.
How about watches that aren't great products even though they have great features? Ultra thick complicated watches come to mind.
Are most watches just stuck in one of the two scenarios described above, and you really need the watch to be a great product and have great features to be a great watch?
I particularly enjoyed the last two sections this week, important and relevant reminders and tips for self improvement seem in short supply these days...maybe I'm not looking in the right places. Anyway, good call outs!
Also enjoyed the essay on telepathy, what a comprehensive history and something I never would have come across myself. If interested, The Why Files YouTube channel covers a lot of those gov't programs mentioned. The presenter has an interesting background, but foremost he's a great story teller and a skeptic. He sort of draws you into the story/background as if it is all fact, but then spends the back half doing some debunking of the popular narratives, leaving the open questions, open.
I grew up near one of the foremost centers for spiritualism in the late 19th and early 20th centuries, Lily Dale, NY. Interesting history to read about if interested in the topic.