According To Ariel: The Luxury Watch Industry Created Its Own Worst Enemy With High Prices — Now It Faces A Reckoning
The luxury watch industry is facing a significant crisis due to unsustainably high prices that are driving consumers away from purchasing traditional timepieces. Many brands have raised prices frequently, often without substantial changes to the products, leading to a disconnect between the retail costs and what consumers are willing to pay. This has resulted in a decline in demand, as consumers seek alternatives, including more affordable options from newer brands. The industry's reliance on consumers for revenue has become problematic, as the high prices are perceived as contemptuous by the very customers the industry depends on. Despite the rising interest in watches, the industry's focus on prestige over volume has led to limited production and a shrinking consumer base. The current pricing strategies are not sustainable, and the call for brands to lower prices is becoming more urgent. Lower prices could potentially increase sales volume and attract a broader audience, thereby stabilizing the market and protecting the industry's manufacturing base. As consumers rebel against inflated costs, the luxury watch sector must reconsider its approach to pricing and marketing to remain competitive and relevant.
