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Watch Industry - Luxury vs Smart

In: Business and Management

Submitted By ysrraghav
Words 2468
Pages 10
Global Market Structure of Luxury Watches
Economics Project by YSR Raghav(14070)

Introduction
History and Evolution of Time Keeping Machines
Watch is a small time keeping machine, historically worn on the wrist or attached on a chain carried in the pocket or around the neck for convenience. Timekeeping has a history dating back to ancient times. The first watch in the 15th century made was spring powered and was strictly mechanical, but with the technological advances this mechanism was replaced by quartz vibrations or electromagnetic pulses. Figure 1 shows the evolutionary era of the various time keeping machines/watches since 1300 BC from the sundial, water clock, to the mechanical wrist watches.

Wrist watches became popular in 1920s, after soldiers came back from the World War I wearing military-issue ‘trench watches’, which were later discontinued as their told only the time. However, in mid 1970s, a novel calculator wrist watch came in the market and was widely used. In subsequent decades, pager watches and phone watches, appeared in the market but did not last for long. Then in 2004, Microsoft produced the SPOT watch, a 300 USD device that conveyed instant messages, stock up dates, weather forecasts and broadcasted FM radio signals. After a few years, this watch died due to marketing strategies. So today, the only surviving wrist watch from this cheerless era is in fact the original calculator watch, which currently retails for about 25 USD.

In general, wrist watches have been categorized with respect to the market price as follows:
Low end price: < 50 USD Middle end price: 50USD -299USD Upper end price: 299USD - 999USD Luxury watch price: > 999 USD

Luxury Watches
A luxury watch is versatile timepiece and a collector’s item for the connoisseur. It is associated as with high symbolic value and is a fashion accessory. These…...

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