The common value of an Omega watch, he famous, had tripled over the previous 20 years, partially as a result of enhancements to supplies, resistance and accuracy improved values. (He additionally mentioned Omega’s volumes had been on observe to move 600,000 items this 12 months, which might be a rise of about 20 % 12 months over 12 months.)
Swiss watch firms hardly ever reveal their common retail costs, however in accordance with an estimate revealed in Morgan Stanley’s 2022 annual watch report, Omega’s common value was 6,571 Swiss francs, earlier than tax. (In line with the report, Longines is the one Swiss watch firm that ranks it among the many business’s high 10 by gross sales, however whose common value of 1,088 Swiss francs falls wanting the federation’s high value class.)
Premiumization, as Morgan Stanley known as it within the report and companies have been speaking about for months, has inspired some midmarket manufacturers akin to TAG Heuer to extend their common costs, slightly than their volumes, to pursue development.
“In 2018, our common value level was 2,200” Swiss francs, Frédéric Arnault, TAG Heuer’s chief government, mentioned. “We lately went above 3,000 Swiss francs.”
Mr. Arnault mentioned that the model’s output was growing, however of higher significance was the altering profile of shoppers. “Ten years in the past, the core focus was the shopper who had one watch in his lifetime, perhaps two, and one of many two needed to be a TAG Heuer,” he mentioned. “And sure, it’s true there’s much less of this buyer, however the collector buyer base profile has grown quite a bit up to now 10 years. There are much more individuals accumulating watches and now that is taking a a lot larger share in our clients.”