1st Survey of watch collectors - A Report of its results issued to the Industry

[PeteM]

Here is the introduction and executive summary of a just released report based on a survey of watch collectors...I am sure some here took part themselves but this report is the first of its kind in trying to identify trends within watch collecting and purchasing. Hopefully the info below gives the details needed to consider the conclusions but I do have it in full if wanted by anyone. To be honest the whole report makes for much more interesting reading.... but the info below gives you a flavour of the results from the survey...hopefully the next one will be from a larger sampling..

 

 

INTRODUCTION

 

LGI Network is pleased to produce the first‐ever confidential survey of luxury timepiece collectors. Nearly
all of the leading watch manufacturers have indicated a strong desire to learn about the preferences and
beliefs of serious collectors. In the past, opportunities to learn about this rarified group was confined to
occasionally conducting focus groups composed of perhaps 6 to 12 individuals. This report provides
quantitative and qualitative feedback synthesized from responses by over 500 individuals that collectively
own in excess of 2,750 watches with retail values exceeding $65 million.

The report’s goal is to substantially deepen the knowledge of manufacturers and collectors by offering a
fact‐based understanding of the profiles, preferences, and purchasing behavior of timepiece collectors. For
manufacturers, we hope the report is a powerful reference tool that leads to smarter retailing, marketing,
and product development decisions. For collectors, we hope it will lead to more informed and confident
purchasing and selling decisions, and generally, a greater enjoyment of the pursuit of timepiece collecting.
Space is provided along side each exhibit to enable the reader to note any special significance of the data
and any implications for future actions.

We thank the more than 500 timepiece enthusiasts that participated in this survey and the leading ultraaffluent
publications and blogging sites that enabled LGI to assemble this impressive group of high‐end
watch collectors. More specifically, we appreciate the assistance of ABLOGTOWATCH, ATimely
Perspective, iW Magazine, Niche Media and its various properties, Perpetuelle, the Robb Report,
Watchuseek, and the Linkedin and YPO watch forums. Their commitment and effort made possible the
publication of this report.
 

 

 

 

EXECUTIVE SUMMARY

 

This report’s objective is to substantially deepen the knowledge of manufacturers and collectors by offering
a fact‐based understanding of the profiles, preferences, and purchasing behavior of timepiece collectors.
Some of the key findings in this year’s report are as follows:

Profile

• Collectors come in a wide range of “shapes and sizes” but the common descriptors of the typical
Collector would be White/Caucasian men between 35 & 54 earning over $250,000 working in the fields
of finance, law, or healthcare.

• Collector’s collection composition varies widely but on average can be characterized by:

• Size. 5 to 19 timepieces with an average collection of 8.5 watches
• Condition. One‐third obtained in pre‐owned condition
• Brand mix. Consisting of 5 brands where no single brand represents more than 34% of owned
units
• Value. Costing $175,000 to $200,000 for them to assemble the collection
Preferences

• Collectors tend to have a clear view on the timepieces they seek to purchase. In 72% of instances, the
collector had a specific model and brand in mind when purchasing.

• Craftsmanship and Timepiece Styling are the most critical dimensions. Over 95% of respondents noted
these elements as critical with a sizeable, though less widespread recognition for the importance of
brand image and complication mix.

• Certain basic features are widely sought by collectors while others are more variable based on the role
a particular watch is purchased to fill within a collection.

• Design Staples (90%+ watches). Male watch styling and no diamond treatments

• Preferred features (80%+). Strap models, exhibition case backs, and proprietary movements

• Other common design choices: Rose gold vs. other gold materials; 36 to 40 mm cases vs. other
sizes

• Less desirable design choices. Skeleton front designs

Purchase Process

• Collectors rely on distinctly different sources for learning as opposed to purchasing watches.

• Learning. The majority of respondents learned about the timepiece they ultimately purchased
via reading about it or hearing about it ‐‐ in roughly 60% of cases. Fewer than 25% and 19% of
respondents, respectively, indicated that 3rd party retailers and brand boutiques were very or
extremely important information sources. The most relied upon sources were indicated as
watch enthusiast web sites, watch forums, and word‐of‐mouth discussions with other collectors

• Purchasing. The vast majority of new watch purchases were transacted at 3rd party retailers or
brand boutiques with over 85% of watch purchases coming through one of these two sources

 

• Purchases are rarely made on impulse. Respondents indicated that in fewer than 1 of 5 cases, a watch
that they liked was purchased immediately and more than 60% of the time the elapsed time extended
several weeks or months.

• The timing of collector purchases does not follow traditional holiday gift‐giving seasonality. The most
common purchase months for watches retailing above $40,000 were April (perhaps reflecting the
greater availability of new special product launches at Basel and SIHH exhibitions) and January (perhaps
reflecting the timing of year‐end bonus payments).

• Collectors heavily favor purchasing through authorized dealers. Over 85% of the time respondents
indicated they purchased new watches through authorized dealers.

Future Intentions

• Collectors plan to increase purchases during the next two years. Collectors focused on watches
retailing above $15,000 indicated plans to purchase 2.1 units per year, up 5% from recent years.
Collectors focused on watches retailing between $5,000 and $15,000 indicated plans to purchase 1.1
units per year, up 22% from recent years.

• The majority of collectors have experience selling or trading their existing watches. 60% of Collectors
focused on watches retailing above $15,000 indicated they have sold one or more of their timepieces. ‐‐
likely indicating a propensity to continue to do so in the future. No dominant approach to trading
watches was employed . Most commonly, these sales were completed via person‐to‐person
transactions (approximately 34% of the time).

[danielv2000]

Interesting. I am surprised about the 85% who purchase through authorized dealers when better deals can be had from trusted grey dealers online.

We should commission a survey for the rep world. I am sure impulse buying would be significantly higher!!!

[PeteM]

In the buyer preference section it shows that at least a third of guys went looking in the grey market....there were considerations that drew them back to the AD...

 

and you can guess what one of them was... !! 

 

 

 

The report breaks down the summary above which sort of explains the logic or preferences that buyers showed in making their purchases.... rather than just price being a factor etc

 

 

2013 Watch Collector Report by LGI Network.pdf

[freddy333]

I took part via a Robb Report survey & the results, while interesting, are pretty much what any long-time collector would have expected.

[PeteM]

I am hoping that it will increase in its sample size as like you say its interesting but is it a true relection especially when you look at value to sample size...there would appear to be a bias on the face of it...

[freddy333]

I am not sure which details would change by having a larger sample?

Since I got into watch collecting (mid-80s), the gene pool has predominantly been upscale white males, who tend to target vintage gentlemen's watches. Vintage, being defined as 25 or more years old, precludes most watches beyond the 36-40mm size range. Back when I began, the IT watch was the Rolex Prince, but any Patek from the 30s would do.

[PeteM]

I am not sure which details would change by having a larger sample?

Since I got into watch collecting (mid-80s), the gene pool has predominantly been upscale white males, who tend to target vintage gentlemen's watches. Vintage, being defined as 25 or more years old, precludes most watches beyond the 36-40mm size range. Back when I began, the IT watch was the Rolex Prince, but any Patek from the 30s would do.

 

From that current sample you can see a higher value to person ratio...so by increasing the sample I can see more regular collectors getting included in areas such as preferences considerations etc at the moment I think that higher value either relates to the more niche models of watch brands or possibly even vintage models..therefore that has a knock on effect to where items are bought...how and why they are bought...etc etc..

 

If that makes sense mate..