Lure of luxury: does the watch maketh the man?

The world economy may be sitting in a ditch, but cashed-up collectors are still shelling out stratospheric sums for rare, vintage and collectable watches.
This year's top ticket item so far is a 1928 Patek Philippe, which changed hands at auction for a cool SFr3.24 million ($3.81 million). Another wealthy bidder snared a 1942 Rolex for SFr1.04 million ($1.22 million); the highest price the make has ever fetched at auction.
Australia has its share of high-end fanatics - those prepared to spend six figures on limited edition models from the big Swiss brands - and a bombardment of luxury watch advertisements in glossy weekend magazines aims to woo the rest of us.

In fact advertising spend for watches in Australia rose over 20 per cent to $20.2 million this year, with the vast majority of this sum devoted to the luxury segment.
So what is it about the watch that excites masculine interest in a way that few other products, with the exception of the motor car, are capable of doing?

Tag Heuer lead designer Christoph Behling says it's because it offers a unique combination of beauty and complexity.

“There is a kind of fascination because of the mechanical heritage of the object. The mechanisms haven't really changed for decades and they don't become obsolete. There are not many other objects you can say that about.”

Marketing manager at Avstev Group, the Australian distributor of Swiss brands, including Raymond Weil and Frederique Constant, Marc Rom says image plays a big part in the purchase.

“At the back of their minds, men notice and judge other men on their watches, as they do on their cars."

Paul McMillan, an analyst at IBISWorld, says watches are "one of the only 'bling' items a lot of guys think they can get away with".

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“If you're wearing corporate clothes and earning a certain income, it becomes something of a status symbol,” he said.
When it comes to premium watches, the attraction is primarily a male one. According to Philip Richards, general manager for LVMH Australia, women's watches account for 35 per cent of sales in Australia. Female buyers may splash out on something if they think it's top quality, or they like the design, but it's men who really drive the market.

They become emotionally invested in their purchase, they're not bothered by the price tag and they often end up owning several pieces; rotating them with, rather than replacing, their original choice.

And although they may look longingly for years, many men don't consummate their love affair with the luxury watch until their late 20s, when their salaries start to climb.

Typically, they'll start with a sports model, then augment the collection later with something dressier.

“It's one of the first purchases in a man's career when you have a little money,” Mr Behling says. “You buy it because it's the right time and you want it – it's a purchase of passion.”

And it's usually a considered one. Some buyers spend up to a year researching, window shopping and trying on, before they make their choice.
As part of the process, they may exchange opinions with other watch owners on forums like timezone.com or consult specialist publications such as WatchTime magazine.

According to managing editor Mark Bernando, the publication's 'watch test' articles, which examine every detail of a piece, from the polishing of its case to the accuracy of its movement, are among its most popular.

“Our readers take the decision of which watch to choose very seriously,” Mr Bernando says. “For them, it's about the whole package, not just the looks, the cost or the brand name.”

The latter however can count for a great deal. While they may appreciate the timeless mechanical beauty of what they've got strapped to their left wrist, many men are anxious that others do too.

Tag Heuer's latest top end offering is the platinum Monaco V4 which runs on miniature belt drives and ball bearings, rather than the usual cog system. It retails for $110,000 and Australian buyers have snapped up five of the 150 units released to market.

Further down the price scale, sales are also ticking over. Swiss watch exports to Australia totaled $91,278,395 in the six months from January to July this year, according to Federation of the Swiss Watch Industry figures. The bulk of this figure is accounted for by mid-range sales – customers who are prepared to drop between $1000 and $10,000 for a shiny new timepiece.

McMillan says there are plenty of buyers in this bracket and they're becoming more discerning about how they spend their disposable income.

“People are seeing prestige products as giving good value over the lifecycle of the product,” Mr McMillan says. “The 70s and 80s idea of eschewing premium goods, as part of the Australian identity has changed and we're becoming more enamoured with premium brands.”



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