
It’s no secret that we love IWC watches. In fact, we have been trying to add a few IWC Portuguese Chronograph watches to our inventory. It hasn’t been as easy as we had hoped. Not only are they somewhat difficult to find, but they’re pricey when we do find them.
So what gives? Here’s our take:
1. Many manufacturers like IWC and Cartier are placing increased emphasis on their own branded boutiques. Some manufacturers have even gone as far as ending relationships with a large number of their retailers. Why? First, they cut out the “middleman.” The manufacturer gets to keep a larger share of each watch sold through their own boutique. Second, they get better control over their brand. “Better control” is just code for “less discounting.” Manufacturers don’t like when their watches are sold for deep discounts. They would rather sell fewer watches at higher prices – this leads to a “better” brand image.
So why don’t the remaining retail partners continue to offer great discounts? Well, maybe it’s the reduced competition. If the manufacturers’ boutiques aren’t going to discount, why should the retail partners? Plus, the retail partners may be afraid to discount too much, thereby angering the manufacturers (leading them to pull the account). And finally, the retail partners may not be getting their “fair share” of popular watches. The manufacturers may allocate a larger share of those popular watches to their own branded boutiques. If a retail partner does get a popular watch, he’s not going to be quick to offer it up at a discounted price.
2. The other big trend that I’m hearing about is the growth of the Asia Pacific market. Wait, China is growing? Get out of here. All kidding aside, we all know that many Asian markets have been growing quickly. Today, more and more watch shipments are being allocated to the Asia Pacific region. The result – fewer watches in the US. And fewer watches (and steady demand) leads to higher prices.
3. There are rumors of IWC price increases. I would believe it – I’m getting that vibe from my contacts in the industry. One of my contacts said, “These watches are getting tougher and tougher to find.” Another contact, just back from Basel, said, “Price increases are the norm.” There are also clues and hints on other watch blogs, forums, and retail sites. While the sticker price on the IWC Portuguese Chrono (in steel) is still $6,800, I wouldn’t be surprised to see it hit $7,300 by the summer.
I’m not saying that everyone should run out and stock up on IWC Portuguese Chronograph watches, but, I am warning you that you may need to pay a bit more if you decide to wait!
Good luck – and please share your thoughts and experiences on the subject. Thanks!!