How to sell a product that people don’t need
Brian W.H. Tang
First person in the world to train LEGO? SERIOUS PLAY? method facilitators in Chinese. Strategic Play Trainer. Trainer of facilitators.
Do me a favor. Take a look on your wrist. Are you wearing a watch right now? If you are, how many watches do you own? What makes you wear a watch? Timekeeping, you might answer. Wait a minute, do we really need a watch to tell the time? Everyone has a mobile phone nowadays. The time shown on your phone is more accurate than any watch in the world. If we are talking about timekeeping, we don’t need a watch.
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If a product is not needed, the invisible hand of the economics will work its magic. Less demand will drive less supply. The product will be gone eventually. Is that what happened to watches? Let’s look at the numbers.
?You don’t need to sell a lot of watches – only enough watches with a hefty price tag.
Before the global pandemic, the Swiss watch industry had a total sale of CHF 21.7 billion (USD 24.58 bn) in 2019. In 2022, the industry achieved an all-time record high of CHF 24.8 bn (USD 28.09 bn)[i]. In just one year, they broke the record again with CHF 26.7 bn (USD 30.24 bn) in 2023[ii]. The global economic downturn didn’t seem to impact the watch industry at all.
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Things get more interesting when we look closer on the annual watch industry report written by Morgan Stanley and LuxeConsult[iii]. In 2023, the top five brands with the largest sales, Rolex, Cartier, Omega, Patek Philippe, and Audemars Piguet, made up a whopping 55.8% of market share, with Rolex accounting for an astonishing 30.3% of the whole pie. Think about it, whenever $100 was spent in the industry, $30 went to Rolex. Simply jaw-dropping.
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In addition, 69% of the growth and 44% of the total sales of Swiss watches were driven by watches priced over CHF 25,000 (USD 28,318). However, this segment only represented 2.5% of the total volume in units sold. It means that the industry growth was mainly driven by high-priced watches. You don’t need to sell a lot of watches – only enough watches with a hefty price tag.
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All these numbers are almost counterintuitive. A product that is technically not needed in our lives is going up in sales, and it’s stronger than ever. One may tend to think that the emergence of smart watches (watches that usually paired with smart phones) may drive the sales of traditional watches down. The facts told us another story. Sales of the luxury mechanical watches, which rely solely on mechanical movements of gears and cogs, are getting stronger and ever. When the world is swarmed by digital products, people seem to prefer the ancient technique of timekeeping on their wrist. How do we make sense of this phenomenon? This article aims to answer two important questions:
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1. What do we get by wearing a watch?
2. How do watch brands sell the watch (a product that people don’t need)?
First and foremost, watches today have been reframed. They are not meant for timekeeping but an important accessory of one’s outfit. It’s part of the wardrobe. It’s much like the ladies’ handbags. Different occasions require different outfits, hence different handbags. Same goes for watches. The function of timekeeping is still required, but it is much more than that. Our needs on watches have gone beyond functionality to status, identity and memory. A watch is simply a piece of jewelry with timekeeping function. The timepiece itself is an indication of your taste, style, and personality.
Your watch is a symbol of your status
It's not hard to encounter the following conversations in social events:
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“This brand is hard to buy. You got one. Lucky you!”
“Are you wearing a digital watch to attend the wedding? You’ve got to be kidding me.”
“Your watch looks so cool. Can I take a closer cool? Look at the golden color…”
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By wearing a specific brand or style of watch, we gain a higher sense of social status. In this sense, brand image, use of precious metal, and scarcity are contributing factors to a watch’s symbolic status. This is not hard to understand. Cars, clothing, handbags are all symbols of our social status. As you move up the corporate ladder and the social ranks, you upgrade your car, move to a bigger house or better neighborhood, buy a nicer phone, and probably a better watch on the wrist. Even if you are not currently at the status you desire, you follow the old saying “Dress for the job you want” and “Dress like the person you want to become”. It may take a long time and effort to reach the level of status you desire, but wearing a watch to the status you want is much easier in comparison.
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Your watch is a symbol of your identity
There are some major categories of watches – dress watch, pilot watch, dive watch, chronograph, to name a few. Wearing a watch with a specific style may reveal certain aspect of our identity or character.
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For instance, a German-made watch may compliment your pragmatic, no nonsense work style. A dive watch speaks to your adventurous character. Your childhood dream of becoming a pilot may be (partially) fulfilled by wearing a big pilot watch.
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In fact, most people who wear a dive or a pilot watch never do any diving or piloting in real life. It doesn’t matter. Wearing those watches satisfy our dreams to become a diver or pilot. It validates our identity or realize our dream in some way. The watch helps us become who we want to be.
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Your watch is a recall of special memory or occasion
Some people buy a watch as a celebration of certain occasions, such as university graduation, first promotion at work, wedding gift, 60th birthday, etc. Watches bought for this reason bear sentimental value. It brings special meaning to the wearer. Some people “inherited” a watch from their late parents. Seeing and wearing the watch brings back memory of being together with the loved ones. The watch may look worn and dated, but the sentimental value is priceless.
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Compared to other luxury products such as handbags, cars and jewelry, watches usually have a bigger appeal in terms of usability and application scenarios. You may literally wear your watch the whole day, and it will work its magic when it’s due. While you are waiting for the meeting to start your watch may serve as a conversation starter with colleagues. You may carefully pair it with your outfit to strengthen your overall aesthetic appeal. Looking at your watch while waiting in line to buy the afternoon Latte may help you recall the memory of buying your first luxury item as a reward for the hard-earned promotion.
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We have answered the first question regarding what we get by wearing a watch. Let’s explore the second question – how do watch brands sell a product that we don’t need?
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Emotional Appeal and Differentiation
Watch-buying is not grocery shopping.
Because watches are not a necessity but an accessory, watch brands cannot solely focus on the functionality in their marketing campaign. The functionality of a watch (timekeeping accuracy, water resistance, stopwatch, etc.) appeal to the rational side of the brain. They are not unimportant, but they alone are not enough to evoke a buying decision. Watch brands must make an emotional appeal to the potential customers. Watch-buying is not grocery shopping. We don’t table all the specs of different watches, assign scores to each criterion, compare the final score, and choose one with the highest score. Instead, most of us first make an emotional decision (based on our needs in status and identity). Then, and only then, do we use the functionality and specs to rationalize and justify our purchase decision.
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“I don’t have a watch with this color. It would be a great addition to my collection.”
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“This watch uses a new type of precious metal. Its price tag is reasonable.”
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In other words, emotional needs precede functional needs.
How do we appeal to people’s emotional needs?
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The world-renowned business strategy professor, Michael Porter, said that there are essentially two strategies in business[iv]: low-cost or differentiation. You gain competitive advantage over competitors by either commanding the lowest cost possible or differentiating yourself from the rest. It’s not hard to see that watchmakers should go for the differentiation route over the low-cost path. In luxury products, resources are way better spent on pushing the price upward than driving the cost downward. There’s a floor on costs, but when it comes to the price, the sky is the limit.
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How do we differentiate a watch brand from the sea of other brands? Let’s explore.
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1. Storytelling
Remember we wear wristwatches not for functional but romantic reasons.?
As mentioned before, watches are luxury products and they must appeal to our emotional needs. The best way to trigger our emotional needs is storytelling. A lot of watch brands have deep history in watchmaking. For example, Longines[v] was founded in 1832 – more than 190 years ago. It produced the first ever chronograph pocket watch in 1878. Since then, it has a deep connection with aviation. In 1935, it developed the flyback mechanism in their chronographs, allowing pilots to restart the chronograph function by a single push of a button, simplifying their needs to measure elapsed time for navigation in the era without GPS technology.
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Omega’s Speedmaster Moon Watch is another example of a fascinating story. In 1960’s, NASA was preparing to send men to the moon. They began testing different watches for their astronauts to wear on the moon. The Speedmaster was one of the few watches that passed the rigorous testing requirements. It was worn by astronauts on the Apollo 11 mission to the moon in 1969[vi]. The Speedmaster Moon Watch has since become a star product of Omega, and remained one of the bestsellers of the brand.
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Remember we wear wristwatches not for functional but romantic reasons. Storytelling is one, if not the best, way to appeal to our emotional side of the brain. Almost all watch brands have some history and stories to tell. It’s a matter of packaging and presenting them in a captivating fashion.
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What if your brand was relatively new and have no historic story to tell? You may learn from two Japanese watchmakers: Grand Seiko and Kurono Tokyo.
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Grand Seiko is known for its superior finish and amazing design on their dials. The bestseller, SLGA009 (white birch), features a white dial that “capture the quiet mood of the white birch tree forests near the studio in Shinshu, where all Grand Seiko Spring Drive watches are crafted.” Owning this watch promises to bring you “closer than ever to the true and eternal nature of time”[vii]. In fact, Grand Seiko has a whole line of product inspired by nature.
Kurono Tokyo is a small, independent watch brand founded by the famous Japanese watchmaker Hajime Asaoka in 2019. In 2021, which is the 2-years anniversary, Kurono Tokyo introduced the special edition model: Toki. The watch features an array of “metallic coral shades ranging from crimson to vermillion red depending on different lighting conditions.” The color of the Toki was “inspired by the Japanese crested ibis, an auspicious bird with feathers of a shade akin to that of a rising sun, and is regarded as a symbol of happiness and good fortune.”[viii]
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What is storytelling? This is.
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2. Design DNA
What’s working in the current design that you’d be crazy to change?
Watches are made to be seen. To achieve the purpose of differentiation and satisfy the need of status, the watch must be easily recognizable. Therefore, watch brands rarely make significant changes to their watch designs. Small enhancements are the norm; big changes are rare. Watch trends come and go, but a brand’s unique design DNA must remain recognizable.
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For examples. Panerai watches are known for their large size and crown protect guard. One can easily differentiate a Panerai watch from other dive watches. Ulysse Nardin’s Freak series is memorable for its futuristic look and feel. Jaeger-LeCoultre’s Reverso series have become the icon in luxury watch with a rectangular shape. Note that unique design language is not reserved for the big and incumbent brands. New and small brands can do that too. Unimatic was founded in 2015, but the simplified and minimal design is fresh and highly recognizable. You look at someone’s wrist across the room and without a doubt you can tell the brand and model of the watch – that’s successful design.
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To determine if you should stick to the current design DNA or change, ask yourself:
What’s working in the current design that you’d be crazy to change?
For example, the Rolex Datejust is a classic dress watch that stood the test of time. The fluted bezel, jubilee bracelet, cyclops date window, and the simple yet elegant design are timeless icons of the watch. When you have something like this and it’s been working for decades, you know you’ve nailed the design bullseye. It’d be crazy to change it.
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The design DNA should ideally speak to the overall image of the brand and applied in all product lines. Take Longines as an example. Its advertisement tagline goes: Elegance is an attitude. You can guess, even with zero knowledge of the brand, that Longines aims to portray a high class and stylish image in its watches. In fact, all their watches were designed with elegance as the central image. From the Heritage Classic, Flagship, to the aviation-inspired Spirit and the sporty HydroConquest dive watches, one can find the trace of elegance in every watch design. “Elegance” is not only a tagline but a substantial differentiating factor only Longines’ unique brand DNA can create. When people think of Longines, they think of elegance. That’s successful brand and design DNA.
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3. Innovation
Innovation gives us a rational reason, though a shallow one, to justify the purchase decision.
In the world of watchmaking, there have been countless innovations in the past couple of centuries. Innovations were needed in the past for precise timekeeping and convenience purposes. If watches today are not meant to tell the time, why do we need innovation? In other words, what’s the role of innovation when watches are meant to meet our emotional needs rather than functional needs?
Answer: To differentiate from competitors and to provide rational justification of purchase.
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Watch brands may further differentiate themselves from competitors by pursuing innovations. For example, in 2001, Ulysse Nardin was the first watchmaker to use silicon in its escapement system, enhancing the anti-magnetic property of the watch. Since then, the practice has been adopted by other luxury watch brands.
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Seiko invented the Spring Drive movement technology in 1970’s by combining an electronic regulator with conventional mechanical movement, resulting in precise timekeeping rival to that of quartz watches and an extended power reserve much superior to normal mechanical watches[ix].
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Citizen invented a novel way to capture and store light power called Eco-Drive. It can convert any kind of light, from sunlight to indoor fluorescent and desk lights, to power the watch. On a full charge, an Eco-Drive watch can run for months in darkness without additional power or light. Some models can even run for as long as seven years[x].
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In addition to technology innovation, some brands pursue innovation in craftmanship. G-Shock watches are known for the shock resistance property and extremely high durability. Some top models use state-of-the-art metals and engraving on the case production. For example, the wristband of the MRGB5000 series use a special titanium alloy that is 3 times harder than pure titanium. The bezel top is made of Cobarion, a cobalt-chrome alloy that is 4 times harder than pure titanium[xi]. The limited edition MRGB2000SG1A features a fierce tiger design engraved by metalsmith Kobayashi Masao on the bezel. Since the engraving was applied by hand, every watch is completely unique[xii].
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A. Lange & S?hne is a Germany watch brand that is known for its world-class artistic finishing and engraving. They used 11 different finishing techniques, including the well-known floral pattern engraving on the balance cock, ensuring that each watch is a piece of artwork that is meant to be appreciated under a magnifying glass. You are essentially wearing a piece of delicate artwork on your wrist[xiii].
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One might argue that these innovations are simply icing on the cake – they are not essential. Remember that the watch itself is not an essential item today, therefore any innovation in design, technology, or craftmanship is icing on the cake by definition. However, the innovation itself is a differentiation factor, and it gives us a rational reason, though a shallow one, to justify the purchase decision.
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So far, we have covered the intangible value a watch brings to the wearer and the strategic approach watchmakers employ to evoke emotional appeal to the customers. Lastly, how do watchmakers apply the differentiation strategy in their marketing campaigns? I will briefly cover three marketing approaches normally seen in the luxury watch industry.
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1. Scarcity
Scarcity is a symbol of status and power.
Scarcity speaks to the one of the most essential influencing tactics suggested by Robert Cialdini in his bestseller “Influence”[xiv]. We generally want more of what is less available. Getting our hands on a scarce item gives us a feeling of psychological privilege, and it is deliciously satisfying. It is a symbol of status and power. Look no further than the brand Rolex. Walking into any authorized dealership anywhere in the planet, and you will find yourself walking out empty-handed. Their watches are simply not available. The reasons behind their scarcity are complex and it is worth another article on its own. However, the sheer fact of scarcity of this brand is one of the contributing factors to its monstrous market share.
If watchmakers don’t like the idea of making their watches unavailable in the shop, they can employ other scarcity tactics. Limited edition, boutique edition, online edition, crossover edition, and geographical edition are the usual suspects. Use of rare materials such as meteorites is another expensive way to play the scarcity game (there are only so much fragments of meteorites out there). Another way often employed by independent watchmakers is “pay now – get your watch later”. It’s like the crowdsourcing approach. They announce the concept of the watch, accept orders and take payments, produce the watches and deliver the products months if not years later. To make this method successful, watchmakers usually combined great storytelling (why this watch is so special) with scarcity (limited quantity produced). Kurono Tokyo is a typical example on that front.
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2. Retro and remakes
Retro and remakes are not reserved exclusively for luxury brands with a deep history.
Most watch brands have a deep history in watchmaking. One way to roll out new products yet retain the design DNA and historic storytelling is to offer retro and remake models. For example, in 2017, Omega released the “Speedmaster 1957 Trilogy” series as a 60th anniversary tribute to the classic timepieces released in 1957. The series is limited to 557 pieces worldwide. The 2017 model stays true to the Speedmaster’s iconic design yet refines in subtle fashion. The vintage look and feel, when combined with attractive storytelling and limited availability, creates a hunger of ownership in the circle of watch enthusiasts.
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Retro and remakes are not reserved exclusively for luxury brands with a deep history. Take Casio as an example. The Japanese company developed the first digital wristwatch in 1974[xv]. Their watches were reliable, affordable, and equipped with multiple functions such as stopwatch, alarm, calendar and even calculator in some models – truly futuristic in the 80’s and 90’s. Today, the Casio Vintage series offers a lineup of battery watches full of vintage styles and characteristics. Some models were enveloped in gold color, a rare design today but rather common some 30 years ago. Casio’s Vintage series are surprisingly popular in youth and watch enthusiast communities who long for classic style from the 80’s and 90’s.
3. Strategic partnership with online influencers and watch collectors
The importance of partnership selection should not be overlooked.
The way people consume information today is vastly different from a decade or two ago. Online channels such as YouTube and social platforms have replaced many traditional media such as newspapers and magazines. Watchmakers must utilize the new channels to reach their potential buyers. One way to do that is to form partnership with online influencers and watch collectors. For example, the watch brand sends a couple of their new models to a YouTuber, who in turn conduct a product review on his channel. In return, the YouTuber gets to keep the watch and/or receive additional compensation, depending on the specific terms of the partnership agreement. Needless to say, audience will likely hear more positive than negative comments on the review.
This soft advertisement model has proven to be an effective marketing strategy. However, the importance of partnership selection should not be overlooked. YouTubers usually have their own brand image – professional, relaxed, entertaining, etc. Watch brands should pick the YouTuber whose brand image matches with that of its watches. A brand known for its sophisticated design paired with a comedian-style YouTuber will only turn into a branding disaster. On the other hand, influencers must understand what makes people subscribe to their channels, and choose the sponsorship brands carefully. I have seen a watch collector, who was known for his taste and non-mainstream watch selection, once conducted a watch review on a low-end watch brand. His superficial and positive comments on the watch resulted in a backlash from his subscribers. Statements such as the followings swarmed in the Comments section. It’s a lesson of brand image mismatch.
“I can’t believe you endorsed this watch brand. Disappointed.”,
“I have bought this brand before, no good.”,
“Time to unsubscribe.”
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Watches are far from an outdated product. We wear watches today not for functional but emotional and romantic reasons. Just as other luxury products, watch sales are only going upward across the globe. Watchmakers need to understand the emotional values a watch brings to the wearer, and strive to go about a differentiation route through storytelling, unique design DNA, and innovation. Marketing strategies such as scarcity, retro and remakes, and partnership with influencers are effective methods to connect the brands with the buyers.
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I have talked so much from the watchmakers’ perspective. To close off, I want to write something from the collector’s perspective. As a novice watch collector, I have a few recommendations for those who are interested to kickstart their watch collection hobby.
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1. Buy a watch you like
Take this advice literally – buy something you like. At the end of the day, watches are worn for the wearer, not for the spectators.
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2. Get yourself educated
Do your homework before the purchase. Get yourself educated on watch knowledge, major differences of brands, history and models. There’s no shortage of information online.
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3. Start small and easy
The watch industry is highly fragmented. You can find any type of watch in any price range. Start small and affordable. Don’t trick yourself into the belief that you must graduate upmarket. I know an avid watch collector whose most expensive watch in the entire collection costed no more than USD 2,000. You don’t need a deep pocket to start this hobby.
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Happy collecting!
[iii] Ibid
[iv] Porter, Michael E. (1980). Competitive Strategy. Free Press. ISBN 0-684-84148-7.
[xiv] Cialdini, Robert. Influence: The Psychology of Persuasion, Revised Edition. Harper Business, 2006.