How does a wristwatch cost millions of dollars?

 

How does a wristwatch cost millions of dollars?

Money can buy a watch, not time!' This phrase is attributed to many writers. This is a fact, but there are some watches that few people can afford.

The volume of the most expensive watches business in the world is said to be in billions of dollars. Many brands also release limited editions every year.

According to a report by the business news website 'Insider', in 2017, 32 watch and jewelry manufacturing companies in the world had a turnover of two billion dollars.

However, the volume of new watches introduced by watchmaking companies as well as the resale or resale of expensive watches is larger than the business of new watches.

Last year, a report published on the news agency "Reuters" stated that the total volume of sales of pre-owned watches, i.e. watches owned by an individual instead of a company, is 16 billion dollars and it is growing at a rate of 25 percent every year. is growing However, in some other reports related to the business of watches, the volume of this purchase and sale is said to be many times higher.

The most expensive watches

According to a website that provides services for buying and selling expensive goods and real estate, the most expensive watch offered in 2022 is worth 55 million dollars. The watch is encrusted with precious diamonds and was manufactured by the British jewelery company Graff. The name of this precious watch is 'Graph Hallucination'.

 

After that, another watch produced by Graff is the 'Fasionation', which costs 40 million US dollars. On the third place is the 'Grandmaster chain' produced by the Swiss company Patek Philippe, whose price is more than 30 million dollars.

On the fourth number is the 'Cheprod 201' produced by the Japanese company 'Carat', which is worth two and a half million dollars, while on the fifth place is the 'The Billionaire Watch' of the Jacob & Co company, which has a price of one crore eight million dollars.

Why are watches so expensive?

Switzerland is the first country that comes to mind when it comes to watch quality. Watches manufactured by Swiss companies are considered the best in the world. According to an estimate, in 2019, Switzerland imported wristwatches worth more than 20 billion.

Two million watches are produced in Switzerland every year, which is two percent of the watches produced in the whole world. Is.

Diamonds or precious stones or gold embedded in a watch make it valuable or there are many other factors behind it. The Federation of the Swiss Watch Industry also provides several other details about this.

According to the Federation's website, the components of any watch are meticulously crafted to keep the movement running accurately. It requires a lot of engineering skills.

Machine made parts are also used for this purpose but many times due to different designs and sizes of watches even very small parts have to be made by hand which consumes a lot of time. That is why some brands only introduce limited editions of some watches because due to the limited number of skilled craftsmen and engineers, it is not possible to produce more than this number of watches in a certain period of time.

According to the Federation, the watch machinery as well as the materials used in the manufacture of its shell or case are also included in its price. Therefore, the price of the watches that come in the casing of plastic or steel etc. is also modest, but the price of the watches with cases made of silver, gold or platinum is also according to the price of these metals.

According to the Swiss Watch Industry Federation, the design of a watch's dial and the crystal used to protect it also determine the price.

The demand-supply gap and investment

According to 'Watch Consultant', a watch buying and selling consultancy website, the prices of some watches are also higher according to the basic principle of supply and demand. That is, if the demand for a watch of a particular design is high and the number available is low, the ongoing competition among watch buyers increases the price of the desired watch many times over.

Because of this gap in demand and supply, watches are not only bought as a hobby but also as a means of investment. Many organizations and individuals buy and collect valuable watches and sell them to enthusiasts at exorbitant prices. To join the Falah Darin group, send an add to WhatsApp number "zero three two one two eight four one zero three four". That is why buying watches is also seen as a future investment or business.

According to Insider's report, the increase in the prices of watches due to the difference in demand and supply can be accurately estimated from the business during the corona virus epidemic.

 

Due to the epidemic, many companies could not introduce their new collections in time, while auctions of many rare or scarce watches were also stopped. For this reason, like other rare goods, the prices of watches also went up during the epidemic. Because the watch manufacturing companies did not have the time to complete the new orders in time and the supply and demand gap had widened due to the shutdown of business during the pandemic.

Training and cost

According to Watch Consultants, the manufacture of certain watches requires certain skills including engineering which also cost a lot to train. Later this cost is included in the price of these watches. This is also one of the reasons for the high prices of some watches.

Similarly, other expenses like marketing, distribution, advertising etc. are also included in the price of the watch from its manufacture to its sale. These and many other factors combine to make watches a valuable investment.