The price factor

How sensitive is the Australian market to priceı It is reported that the average price for a Swiss watch in Australia today is A$2,000 while luxury watches cost more than A$7,000, compared with Europe where the standard would be A$10,000. In terms of the luxury watch scale, contemplate brands like TAG Heuer, Panerai and Omega, then Breitling and IWC, then Franck Muller and Jaeger-LeCoultre. But it is the TAG blitz promotion that gave us the freedom to ponder these brands and the dollar amounts they imply as collectible pieces – it reset the entry level price perception.

The Swiss brands have probably grasped the TAG phenomenon and learnt its lessons as we see a much greater acceptance from buyers that a fine prestige watch cannot be had for pocket money. Further we seem to be finally shedding the early “Swiss Made” concept that the quality is so good we only ever need one stainless steel watch – when wouldn’t it be really nice to have anotherı

Watches of Switzerland owner and Managing Director Eric van der Griend says it is mostly men in the 30–45 age bracket who buy expensive watches. “We are now seeing younger Australian males more interested in mechanical watches following the TAG launch in the late 80s . . . . and in this last couple of years the Omega Co-Axial development has maintained the strong interest of the collectors and aficionados.” Of the most sought after, van der Griend says the Omega Speedmaster, with an entry price of about A$4500, is outpacing the others followed closely by IWC. The James Bond movies have promoted incredible sales of Omega's Seamaster.

Van der Griend feels that the Rolex Daytona is a phenomenon but not what it was. The Daytona and the Panerai are now more a fashion thing which may have peaked – watches to be seen with – been there and done that! He further maintains the value of a watch lies in its movement and van der Griend has sold a few rare IWC Grand Complications at A$350,000 (with platinum bracelet).

The Switzerland based Antiquorum watch auctions have played a positive role in this story. Antiquorum has established wrist watches as collectible items where before there was no scale of reference and spectacular clocks and complicated gold pocket watches were considered to be art pieces sold through general art auctions.




Eric van der Griend, Watches of Switzer-land owner and Managing Director.

Watches of Switzerland Brisbane shop. There are five shops in Australia's mainland capital cities and one in Auckland.

David Bryden, Sales & Marketing Manager, IWC Australia & New Zealand.


We now see reports in the press about the very generous prices being bid at Antiquorum for particular watches in Geneva and Hong Kong and many Australians went scurrying to the bureaux drawer to see if any of the old inherited watches were in this class. In the event, there were so many that Antiquorum opened an Australian office!
David Bryden, Australian Sales and Marketing Manager for IWC is in agreement that Australia was a “stainless-steel one-watch country” a decade ago, but comments that the collecting fraternity has grown to a critical size to justify luxury brands in the market – and it started with the TAG Heuer marketing push 20 years ago.

Watches as an investment

Investment is a growing combination of pleasure and business. Bryden says, “Rather than putting money into superannuation, some investors are ‘banking’ watches while others are trading in new watches regularly to trade up – the maturity of the market has really grown in this respect.”
Of Rolex he comments “Rolex collectors buy a new different style of Rolex every 4 or 5 years to collect for different purposes (chronograph v GMT) and occasions (sport v dress) – which becomes part of a collection across the range.” Very popular currently is the Rolex Explorer 1 [Oyster Perpetual Explorer] but the Rolex Daytona is probably at the leading edge of them all.

For IWC Bryden says “With IWC it’s the Big Pilot sporty watch and then the same buyers follow that with the Portuguese for dress wear and formal occasions. For Jaeger-LeCoultre it is the Reverso. But second only to Rolex, the most collectible brand is Omega and this isn’t just Australia – it is worldwide – and Omega is one of the most traded watches on the internet, especially the Speedmaster.”
Recently IWC sold a watch at A$140,000 but that is not the highest that has been paid here. In 1998 IWC sold an Il Destriero Scafusia (the 125th anniversary watch) for A$650,000 which was then the most complicated series produced mechanical wristwatch ever made and the Il Destriero Scafusia is already legendary.

David Bryden says of the Australian market, “The wealth that has been generated in Australia from the mineral exports over the last seven years has supported Jaeger, IWC and Rolex particularly well and if the economy had been lagging as we were say, 15 years ago, the luxury watch market would be nowhere near where it is today.”
Finally, Eric van der Griend reports that sales in his national retail outlets for the first quarter this year are up by 47% on the same period last year – and that about sums it all up!


Australian Market Focus: Part 1
Australian Market Focus: Part 2
Australian Market Focus: Part 3

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