Analyses of the Impact of Brand Value on Prices in the Luxury Watch Industry

Abstract

This research is a brand value study in the watch industry. It aims to clarify the differences in the brand value factors that make up list and secondary market prices. It has also examined the brand value factors that lead to high secondary market prices. List prices were relevant to the savoir-faire (craftsmanship) in the model and the brand’s precious metal ratio, while secondary market prices were relevant to the brand’s complication ratio, the number of years since the model was discontinued, and the brand’s rarity. Watches traded at higher secondary market prices were either models of brands with high rarity or limited-edition models of brands with high complication ratios. In practice, the finding that increasing the number of watches with complications, which no one had previously thought necessary to improve the secondary market price leading to brand value, is important for watch brands.