A few weeks ago, I was chatting with a friend on WhatsApp. We were catching up after ages. Originally from India, he now calls Dubai his home. He knows I love watches and writing about them. He goes ‘I just bought a watch.’ He knew I would ask ‘which one’ and ‘please share a pic’ and was waiting for me to say it. We go back a long way, having attended boarding school in Singapore during the mid-nineties. Aspects of our behavior are predictable to each other. What followed was a picture of a beautiful Audemars Piguet Royal Oak Chronograph in Rose Gold. I was impressed, and not surprised, as my friend is a hugely successful technology entrepreneur, having founded a handful of technology ventures straddling India and the US, and then selling them for millions of dollars.
He shared how the boutique insisted he must build a relationship by buying another model or two, engage with them on their social media, and simply wait indefinitely. Aspects that are typical of luxury and haute-horology watch brands, and those that collectors take for granted. Frustrated, he went ahead and bought his desired watch on a well-known preowned platform. This made me realize that – like my friend – there is an entire world of potential watch customers. Not all as successful and wealthy as him – but those who have little idea about watches and how the world of luxury watch-retail works.
Luxury products are as much about the ‘community’ they create as they are about ‘physical products’ themselves. I have experienced this myself as a boutique customer of a Holy Trinity watch brand. The themed events, cocktails and dinners, opportunity to socialize, the thoughtful gifts (often part of the theme of the event), all serve to create an ecosystem of networking, lifelong friendships, and a closer relationship with these brands. This community aspect keeps the halo and prestige of these brands alive. The creation of such a community cements stronger bonds between brands and collectors. Those passionate about luxury products are more likely to seek such a community. Often, the community experience is as or more important than the products themselves. For passionate collectors, the physical product is a means to membership in a community or exclusive club which offers an enriching experience. In the case of watches, being a brand’s boutique customer or through an authorized dealer (AD), enables the collector to get priority access to new models and limited editions, often before they are revealed to a wider public.
For many, the boutique or AD experience, and the community they provide is not so important. Certainly not for my friend. He is not a watch-guy or WIS (Watch Idiot Savant). And there are many others like him. People who want to buy a watch, who can afford them, are not so passionate about horology and uninterested in being part of such a community. My friend certainly views watches as status symbols but was not interested in making the effort required to become a boutique or AD customer. His experience at the boutique left me thinking. If any brand or AD knows him and his accomplishments the way I do, they would let him have any watch he wants, even the ones one must qualify and wait years for. This is just my (blind) bias towards my friend. But the way the industry works, his accomplishments mean little in the ‘ladder’ one must ‘climb’ to qualify to purchase certain pieces. Not everyone is as accomplished as my friend, yet there are many who have the means and can afford them.
What does all this mean?
- For the likes of my friend or the Non-WIS Watch-Collectors.
- For Brands and Authorized Dealers.
A)
My friend values time and money. He was not able to purchase his desired watch from a boutique, so he found another way. He is happy with his ownership of it. He enjoys wearing it. In his social circle, it represents a well-earned status symbol. The ‘product’ is the same; the only thing missing is the ‘community’ experience. To illustrate my point, let us use an example from the world of supercars. A gentleman who loves Ferrari purchases his desired model preowned, as he is not interested in the lengthy waitlist of a Ferrari authorized dealer. While driving on the Italian Countryside or German Autobahns, it is still a Ferrari. Depending on the model, it is still a V-8 or V-12 rumbling away behind his ears or in front of him, put together by the magicians at Maranello. What is missing is that this gentleman – though loving the ‘product experience,’ exactly as Enzo Ferrari intended – will not get to enjoy the ‘brand and dealer experience,’ such as invites to dealers where they network with other customers and enjoy champagne and hors d’oeuvre, while models remove the covers of the new launch, or the opportunity to meet the Ferrari F-1 Team at HQ in Maranello. It is the same for my friend. He gets to enjoy everything there is about his new watch. He just does not get to enjoy the brand or AD experience, and the benefits that come with it.
B)
For Brands and AD’s, they obtain customers indirectly. These are customers who carry the heritage, prestige, other aspects of their respective brands, without having a direct relationship with them. Brands and AD’s must realize that while these customers did not purchase the ‘official’ way, they nevertheless are on their wrists now and in official possession of the watches. The brands and AD’s have an obligation to authenticate (if the brand provides this service, as it varies) and service these watches when required. While brands and AD’s may turn a blind eye, they do know that some of their official customers flip their watches on the secondary market. As much as they try to control and prevent this, it seldom happens as intended. For the brands and AD’s, customers such as my friend are a blessing, because they inadvertently function as their brand ambassadors and marketeers, at minimal effort and cost for them. I am sure most of my friend’s social circle are not passionate collectors, but they will display curiosity when they see his watch. A small percentage of them might get hooked on horology. Brands and ADs must not ignore such customers and must find a way to engage with them.
A prolific collector friend of mine from India – Farhad – had this to say about such collectors: ‘We have to understand that as enthusiasts and collectors we actually represent a very very tiny percentage of global sales. Most buyers are one and done. And they are least bothered about pricing and value retention. They’ll wear the watch for the next 10-15 years.’ This perfectly sums up the Non-WIS Watch Collectors.
Well-known Preowned Platforms (A Collected Man, Chrono24, WatchBox, and Wristcheck) Auction Houses (Phillips and its venture Phillips Perpetual) and Publications (Hodinkee and Revolution) are legitimate alternatives for purchasing watches. They are much more than a ‘used-car showroom.’
From having a presence of global boutiques and hosting events, churning out excellent and expert editorial and social-media content, to being authorized dealers of certain brands, to having ownership in brands, and frequently having collaborations with brands (whether mainstream, independents, or microbrands) for limited edition watches, these platforms have become horological powerhouses on their own. Several of my collector friends have begun purchasing from them. They also cater to the needs and demands of Millennials and Gen Z, many of whom (perhaps) care less about purchasing ‘officially’ from the brands and AD.
While the experience of being a boutique or AD customer has its charm, the industry cannot ignore the likes of my friend and these alternative platforms. Their growing importance must not be underestimated. Purchasing from them is often as enriching an experience as buying from a brands boutique or AD, and one is welcomed into their world and community. And the customer benefits from the same peace of mind that comes from a brand’s boutique and AD. It is a win-win for the industry, for both the brands and the customers. Such platforms have made watches more accessible to a wider and more global audience and have truly democratized the industry.
