A common question among watch collectors is “Why are designer watches so expensive?” In this modern world, we may not understand why certain items are so expensive and wonder who can afford to spend so much on a watch!

Here, Duy Anh Watch will help you give the answer to why branded watches are expensive, we will analyze the core factors that influence a branded watch!

1. Factors that affect the value of a watch

Brand value

First and foremost, the brand name increases the value of the watch because you are not just buying a watch, you are buying the value of the brand. Imagine having two identical watches, one with the Longines logo on the dial and the other without. Branded watches will be more expensive than unbranded watches because you are buying a symbol of luxury and not just a device to tell the time

Những ai thích đồng hồ, thử tài xem nhận diện được bao nhiêu thương hiệu  này?

Branding affects the value of a watch

When talking about luxury watch brands and why authentic watches are so expensive, it is clear that we cannot ignore its brand. Many people want the brand to represent what people perceive it to be. But perhaps most importantly, some people buy watches simply for the brand and the reputation that comes with it that everyone knows; others buy a brand because they know the history of the brand, what it offers, and the attention to detail they pay to the product. Buying a well-known and sought-after product makes people willing to pay more for it as well; they get respect and value in their social relationships, and a luxury watch will give them that.


In the early 20th century, watches were mainly used as tools. For example. Divers needed something that was waterproof and could operate at a depth of 100 meters, car racers needed a way to tell the time, and surgeons would need a something to reliably measure running time.

All of this changed with the start of the “quartz revolution”. Instead of using a wheel, a quartz watch uses an electronic motor driven by an electric current through a quartz crystal to tell time. A balance car or pendulum This required fewer parts, was cheaper to manufacture, and was inherently more accurate than a mechanical watch. When cheap quartz watches could be mass produced, this caused problems for the basic watch manufacturers of the time, which were mostly Swiss companies. between 1973 and 1983, imports of Swiss watches plummeted from 40 million to 10 million. , according to a 1999 article in “The Freeman” (a magazine published by the Foundation for Economic Education)

Since that time, people have not needed to buy mechanical watches. If people wanted a device whose primary use was to tell the time, they would buy a mass-produced quartz watch. Quartz watches are more accurate and maintenance free. Because of the quartz crisis, big brands like Rolex or Patek Philippe raised the prices of their watches and used marketing to convince the world that their watches were of the highest quality. This strategy has been maintained to this day and is the reason why they are the luxury brands we know today.

Watch collectors want mechanical watches with tradition, history and luxury. Not everyone can afford a mechanical watch; therefore, people who own high-end, luxury watches show their wealth.

If a watch is much cheaper than a watch of equal quality, consumers will assume it is cheaply made or not as luxurious. Consumers pay for what they think they are getting, and in the case of mechanical watches, they tend to pay for the epitome of luxury. Brands will use this knowledge to price their watches.

Quality tests

COSC, Hallmark of Geneva, Fleurier Quality Foundation, ISO standards …… are authorized third-party certifications and seals that attest to their commitment to the quality of watches from manufacturers around the The world!

These certifications cover many aspects of quality, as well as various rigorous testing criteria such as accuracy, durability, aesthetics and are considered a sign of outstanding quality of the product. Bell.

Certification by these organizations will give the brand a reputation for high quality as well as meeting this standard will be monogrammed or stamped on the product, of course, because quality testing fees are often very expensive. High, so the watches also have a higher value.

Luxury watches are made from the finest materials.

From diamond-coated bezels to gold cases to dials, manufacturers use top-quality materials (both inside and out) to make their luxury watches. In turn, these precious materials are the direct cause of the price increase. While cheaper materials (such as stainless steel or gold-plated metal) can be used, the use of these premium materials will increase the life of the product.

Many brands can manufacture some of these expensive materials themselves, but most must be imported from third parties who are also well-known brands specializing in luxury materials such as diamonds, gemstones, gold, platinum-platinum , mother-of-pearl, etc., resulting in higher product prices.

The materials used to manufacture the watches have also become an important differentiating factor for some brands.

Production is complex and requires a lot of time to make

Making a watch, especially a new model, can take years. Watchmaking can start with research, especially in terms of watchmaking innovations – such as creating more precise movements, thinner cases, or a new set of watches. More advanced complication components, some innovative features…

Then comes the design, prototyping and testing – only after these are completed can actual production begin. Brands invest a lot of time and resources in testing their watches before they reach the market.

In a world where automation places great emphasis on speed and efficiency, luxury watches are still largely assembled by hand. Brands still rely on the steady hands of artisans to assemble their watches, as the parts used in watches have very little tolerance for errors or deviations. The parts of a watch are so small and geometrically complex that they are manufactured with only a few microns (millionths of a meter) of precision.

Watchmakers undergo decades of training before they begin making watches; and each part of the watchmaking process requires a different skill level. Of course, this labor and overhead affects the value of the watch.

2. Luxury watches are usually only available in very limited quantities

Luxury goods are usually only produced in limited quantities, which makes advanced mechanical movements really difficult. One of the reasons is that you need skilled craftsmen who can build and assemble them, and it’s really not an easy task to get those craftsmen.

They are expensive to produce, and their exclusivity increases its desirability among the elite shoppers who can really afford them. That said, watches don’t have to be of limited quality to create the illusion of their rarity.

Many luxury watches are hand-finished, so scaling up production is not a good option. Moreover, in order to maintain internal precision and accurate specifications, the brand wanted to keep tight control over its production process, making it easier to produce in small batches.

And as you know, there is a clear correlation between low volume and high price in the luxury industry. You can choose to produce your items in large quantities and have a lower price, or you can keep production relatively low and steady and then raise the price, because doing so ensures that your brand’s reputation The brand is strong and highly appreciated.

Generally speaking, luxury watches are produced in limited quantities. On the other hand, many luxury watch makers make limited edition watches, such as 500 or 3000 pieces. Of course, limited edition watches tend to be more expensive than regular watches because it costs a lot of money to develop a watch and the cost is limited if only a limited number of watches are produced. Development costs must be distributed among fewer units. Thus, limited production and exclusivity are two reasons why luxury watches are so expensive.

3. Branded watches hold their value well.

Although they may seem expensive to some, watches do not depreciate in value as quickly as other luxury items. They are a real asset and the prices of many watches are rising. Many collectors treat their watch collection as another asset they own and expect it to retain its value.

In addition, if properly maintained, they can last for generations. For some technologies, such as telephones and automobiles, new updates and features can make their previous versions completely obsolete, while watches have timeless functionality.

4. Expensive in distributing watches to the market

You should not think that the price of a watch is only: the cost of design, production, materials, labor, quality control, branding …… brand by the end of the watch production. Watch brands must also find a way to distribute and bring their watches to market in order to get their watches into the hands of consumers. This is a very important step in order to evaluate the success of the watch model after production. Bottom line, a watch costs about $1,000 in materials and labor and the manufacturer will provide it to the distributor at a profit of $1,500. The retail price to the consumer is inclusive of the regional distributor’s profit, the reseller’s profit, and the tax rate in each country (where the tax varies from country to country, so the final retail value varies from country to country).

Because of the many costs involved in distributing watches to users, some true watch retailers have come up with many strategies to reduce costs when purchasing watches for their customers. Users. Usually at Dewing Watch, in addition to after-sales programs such as: customer support warranty, in addition to the company’s warranty provisions; Dewing Watch also has regular promotions for loyal customers, 10% off products for customers who order online. Many people don’t think about this because they think it’s bad to buy something online and get a discount, is there something wrong with the product? However, from a strategic point of view, this is a very good support for retailers and for customers to stimulate the online sales market and reduce the cost of hiring sales staff and renting space. The scary thing is

In addition, Duy Anh watches offers promotions and after-sales services with the aim of getting more genuine watch products into the hands of customers and creating favorable conditions for them to buy genuine watches. brand at reputable dealers instead of the cheap fake watches that are rampant in the market.