The world of watches is full not only of new presentations and releases. Sometimes, famous watchmakers bring news that upsets the public. Such a novelty was recently suggested by Omega, one of the most prestigious watch companies. Well, we have to admit that the novelty is annoying only for watch enthusiasts. On the other hand, the brand will only have to win. It is about the announcement suggested by the company that it plans to change the price policy. As such, the Omega catalog will become less available for those who love its creation.
Moreover, even the retailers are not happy with this change. And that’s because the brand has suggested that it will reduce margins for them. This translates into fewer promotions and discounts for the final buyer, which – again, does not sound very favorable.
What are the causes of these price changes? And what are its consequences? The increase in the prices of authentic watches will certainly strengthen the public’s attention toward replica alternatives. Now, the public is curious to know if the prices for the replica watches will also undergo changes. We have already received several such questions from our loyal readers.
I did an analysis and presented my conclusions in the following article. Stay with me to see what caused the price increase of Omega watches and how it will affect the replica industry.
First of all: how healthy is this change?
Whoever follows Omega’s activity already knows that this price increase is taking place for the second time this year. As such, many enthusiasts wonder how normal such a business approach is. To calm the spirits down, adjusting the price policy is an absolutely common thing in the watch market. All luxury watchmaking brands review their strategy regularly and consistently.
Also, it would be correct to take into account the inflation variable that always gives big businesses plenty of hustle. In the same context, production costs as well as the perception of brand awareness are also strong influencing factors. All these premises are a solid foundation for the review of expenses and profits. After all, any brand, including Omega, must profit from the activity it does.
While the price increase is somehow reasonable and justifiable, the brand did not rush to come up with a clear explanation about it. More than that, the discussion about this topic was more vague than clear. This served as a sufficient reason for the various experts in the field and watch enthusiasts to make their own assumptions.
One of their most rational reasons revolves around the materials and manufacturing costs increase. Well, it’s a quite plausible possible reason that makes absolute sense. After all, Omega is faithful to the superior quality of its watches. And that involves expensive resources, expertise, and scrupulous labor. The costs for these variations are continuously increasing. This justifies the increase in prices including for other watchmaking brands, if we look back at previous years.
Another theoretical explanation
I came across a somewhat more curious explanation recently. As banal as it sounded at first, it made me think as much afterward. “The watchmaking brand tries to follow in the footsteps of Rolex, tending to become like it” – that’s how the justification of Omega’s prices sounds in some theories. I thought the theory was funny at first. But, contemplating it for a longer time, I realized how much truth could be in it. Rolex has always been a direct rival to Omega. These 2 factories have always advanced in an undeclared competition. And increasing Omega’s prices could be a strategic step to get closer to its historical competitor.
The policy of the Omega manufacturer has always included more affordable watches than Rolex. As such, Omega understands quite well that the public buys its watches including for more affordable prices. But Omega’s ambition is not accessibility but the power of prestige. With the price increase, Omega will answer an important question: Does the public buy Omega watches for the value of the brand or the affordable prices? The higher prices will bring Omega watches to the level of Rolex. Then, the battle between brands will take place at the level of prestige and reputation, and not at the level of prices. So, thinking a little bit wider, raising Omega prices could be an ambitious strategy for brand prestige reinforcement.
Although…
If this theory has the right to life, I hope that Omega has taken into account all the associated risks. I doubt that such a brand does not have efficient business analytics. The riskiest consequence of this step is a radical change in customer behavior. Just imagine: watch enthusiasts wanted a luxury watch at a reasonable price. Now, the price will not be as reasonable anymore. What is the guarantee that the buyer will not consider other offers from the same expensive price range? After all, Omega is truly a superlative expert in what it does. But so are Audemars Piguet, Tudor, Hublot, and many others.
In such a case, I hope that Omega has prepared a mind-blowing marketing strategy in order not to allow its buyers to choose alternative options. Either way, one of the effects of this price change will be reflected in the aftermarket and replica watch industry. Ultimately, a certain segment of buyers simply won’t be able to afford the new Omega prices, no matter how strong the marketing campaign is. As such, they will focus their attention on aftermarket and replica watches.
Dealers will also be affected
The increase in Omega prices gives even the dealers plenty of fuss. This is because the margins are planned to decrease. The consequence of this change implies fewer opportunities for dealers to attract customers through competitive prices. Many of them relied on attractive margins, which allowed them to offer promotions while still turning a profit. Now, the lower margin cuts dramatically from that profit. As such, the dealers are concerned about new strategies to remain afloat and keep their clients. We may have a more service-oriented approach in dealer stores as well as possible after-sales services. All these may be new loyalty techniques given that the advantageous prices will no longer be available so widely.
What does this change for watch collectors?
Whether we like it or not, the change in Omega’s pricing strategy will leave traces, including for collectors. Insights show that the results will not be exactly positive. Collectors will have to review their financial investments in new collections and prepare for their growth. The lifeline may be the emotional attachment to the brand. The strong spiritual connection with Omega watches may influence collectors to ignore the increase in their prices. Now the question is how strong is this connection. Otherwise, collectors, just like buyers might consider other valuable alternatives.
What does this mean for the replica industry?
The beautiful part of things is the change in the price of authentic watches is not likely to change much in the replica industry. It is true that the prices for replica watches somehow depend on the prestige and value of the authentic brand. But this factor is not the only and definitive factor in setting prices for replica watches.
Replica factories set their prices according to the materials used and the complexity of the watches. Obviously, a replica watch with multiple functions will cost more than a pure time-only timepiece. Also, obviously, a 904l stainless steel version will cost more than a 316l one. Either way, their prices have nothing in common with Omega’s expenses for expertise, research, materials, and labor. The replica industry has its own resources.
On the other hand…
Of course, there is a small probability of an increase in the prices of imitations. But this has nothing to do with the new policy of Omega or any other watchmaking brand. Rather, it has to deal more with the increase in prices for the raw material. If, for example, stainless steel suppliers increase the prices for this material, replica factories will have no other solution but to adjust them. Also, if a factory decides to produce optimized mechanisms to replace them instead of the A-grade ones, the price of the watch will increase in direct proportion to the increase in its quality.
The idea is that the replica industry does not take advantage of the increase in the prices of authentic watches to raise their prices. The concept of the replica industry is to offer advantageous alternatives to far more expensive watches. And this will not change, because this concept is the essence of the industry. An increase in sales of Omega replica watches is indeed expected. This is because those who cannot afford the new prices will look for alternatives. Now, the goal of the industry is to prove that a replica watch is indeed a good alternative. For this, the goal will probably be to increase quality, and by no means to increase prices.
With these in mind…
You can rest assured that Omega replica watches will be as affordable as they have been until now. The important thing is to find a reliable supplier who can offer you the best version of an imitation. After all, not all factories commit to superior quality. If you are looking for a reliable dealer, consider AAAReplica. We have been in the industry for over 10 years and know how to combine good quality with advantageous prices. Now more than ever we want watch lovers to understand that a replica watch is worth it. For this reason, we collaborate with the most demanding factories in reproducing imitations.
Bottom line
Any increase in luxury watches brings with it a wave of reactions. Omega took the risk of announcing 2 price increases this year. As such, the earthquake in the watch industry is felt on different forums, and social networks, as well as in the mouth of the world. If it took this risk, it means that Omega expects an increase in brand awareness as well as a higher resale price. However, some risks cannot be excluded from the equation. You never know how the buyer’s perception will change following such changes. And in the end, the buyer will be the one who will define whether the price change is a favorable one or not.
Now we are going to follow the echo of this change in price strategy. Let’s hope that the prestige accumulated over the decades is reason enough for Omega to keep its customer loyalty. The entire community of watch enthusiasts closely follows the watchmaker’s maneuvers. Maybe now is the time for customers to demonstrate their loyalty and continue to choose Omega when it needs it most.
Either way, the good thing is that all this pressure around Omega does not affect the replica industry. Omega imitations will most likely remain in the same price category, even if the demand will probably increase. Also, a quality improvement is expected. This is because factories will want to prove that those who choose an imitation instead of an authentic watch are making a good choice. Get me right, I don’t assume that a replica watch would be a better option than a genuine one. Never. But, when the prices are beyond our means, a replica alternative could satisfy the desire for a luxury watch.
In the end…
I dare not judge Omega’s choice. I am sure that the watchmaker assumes all the consequences. Maybe the brand has reached such a level where it is more reasonable to cut production as the demand drops. The increase in prices, in the end, will compensate for the difference from the reduction in sales. Also, I am sure that Omega prefers to focus more on innovation and development than on production in large quantities. Thus, the increase in prices is equal to the reduction in production. Consequently, there will be more time and effort available for the next releases, which I don’t know why, I think they will be beyond the limit of expectations. We can only follow the evolution of things holding our breath.