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Swiss watch industry rides China wave
Marketing luxury as mobile devices steal timepiece business

By Agnese Smith

ZURICH (MarketWatch) — “Do you know the surest way to go broke?” asks corporate raider Lawrence Garfield, played by Danny DeVito in the film “Other People’s Money.” The answer: “Keep getting an increasing share of a shrinking market.”

At least for the present, the Swiss watch industry may be the exception that proves the rule. While demand in the West may be falling for the kind of workhorse watch prevalent in pre-cell phone days, it is still strong in other parts of the world. And luxury brands are booming, observers say.

From academics to consumers, fashion insiders to manufacturers, most agree that the prospects for the Swiss watch industry are rosy thanks to soaring Asian sales and the enduring social cachet of expensive watches. Demand for the likes of Swatch’s Omega, Rolex and Cartier — particularly in China -- is solid and companies are reporting glowing earnings despite a surging franc, sky-high precious metals prices and a limping global economy. Switzerland is the world’s largest watch manufacturer, and while it produces timepieces in all different price categories, it accounts for most of the luxury market.

“The environment for the Swiss watch industry is still good, especially in Asia ex-Japan,” said Patrik Schwendimann, head of consumer goods equity research at ZKB in Geneva. “These days, they are the most important market and the positive news is that they really like Swiss-made products.”

For the rest of the story click here: http://www.marketwatch.com/story/swiss-watch-industry-rides-china-wave-2010-10-29?pagenumber=1

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"Emotion has replaced utility as the watches’ main selling point"

Wasnt really sold on the whole article, but this line was spot on.

So:

• Exclusive luxury: >$3,000
• Accessible luxury: $500-$3,000
• Mid-range: $200-$500
• Lower range: <$200

I guess when you're a WIS, these figures inflate. Exclusive luxury? I think Patek, Breguet, Ulysse-Nardin. All that's a little more than $3,000. On the other hand, if I go with these figures, then my Chrono Superocean is an "exclusive luxury" timepiece.

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[Witty signature here]

I agree...Exclusive luxury doesnt even start till an in-house movement, but maybe we are just a bit biased.

I actually might agree, in a general sense, with these classifications. I think it might be better to think of it in terms of what it costs to get an entry level peice from a specific brand.

A loaded Honda Accord costs as much as a stripped down 3 Series BMW - but there is no mistake as to which of the two brands is luxury.

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“The only reason for time is so that everything doesn't happen at once.” - Albert Einstein

I agree the dollar brackets need adjustment. Accessible luxury could easily be 3-6k. Low end, uhhh $500? you can get a Citizen that costs more then that, hardly a luxury brand. Most luxury brands offer entry level pieces between 2-3k, kinda mid range. Low end could be something like up to 2k. Exclusive shouldn't be $3000; maybe 10k+.

I can't see any watch costing less than a dinner bill for 2 at a high end eatery being luxury at all. Say less than $700ish. JMHO!

OMG
I know this is offtopic, but 700 $ for a dinner for two ?
Withour wine ?

I'd assume that's with booze.

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[Witty signature here]

Of course, a bottle of wine, something reasonable. As a matter of fact I don't drink at all, so I can't go on the record with some hip wine name here. I pulled the number from the past weekends dinner out with my brother. He had a bottle to himself. I drank water, no lie

He wears a Fendi.