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Will Smart Watches Spell Trouble For Luxury Brands? February 25, 2014 (0 comments)

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New York, NY—Like everything that initially seems too farfetched to become reality, smart watches are gaining traction. But will a smart watch invasion be a repeat of the way quartz and digital watches destroyed the mechanical watch market in the 1970s? Or will it even have the same impact that smart phones did on the cellphone category?

It’s highly unlikely, according to experts. This time around, there’s a much clearer distinction between the technology of a smart watch and the complexity of a luxury haute horlogerie timepiece, such as the Vacheron Constantin Quai D'Ile model at left. According to a recent article in Luxury Daily, luxury watchmakers will be better served by resisting the temptation to enter the smart watch category and instead focusing on what they do best: crafting complex and intricate heirloom timepieces. And retailers will be best served by focusing on those attributes at the sales counter.

Fine watches are tied with leather goods as revenue leaders in the personal products categories of luxury—flying in the face of worries that cell phones would eliminate the need for a wristwatch in most consumers’ eyes. Instead, luxury consumers are fascinated by the complications and craftsmanship of fine mechanical watches.

“Smart watches won’t harm traditional watches, but will force traditional manufacturers to remain even more focused and innovative in their craftsmanship,” Sophie Terrisse, CEO of STC Associates, New York, told Luxury Daily. “It also forces the definition and differentiation between smart and complex. That level of craftsmanship is beyond smart. It is eternal.”

Smart watches, meanwhile, are hardly eternal. With price points at or below $500—they’re more likely to be treated by consumers the same way tablets and cell phones are: disposable, with regular upgrades to get the latest bells and whistles available.

The Samsung Galaxy Gear watch retails for $199 on the AT&T Mobile website.

Veteran watch experts like journalist Roberta Naas, blogger Ariel Adams, and distributor Jim De Mattei agree that smart watches are not likely to hurt luxury watch sales. All three told The Centurion previously that they believe the smart watch category may be beneficial in that it will open up the concept of wearing a watch to a new audience, but it won’t dim the appeal of fine mechanical watches for connoisseurs.

 

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