Vol 5 - Market Breakdown: Established Brands Category

Last updated: Dec 2023 | Est. 10 mins

Welcome back to the Oliver Digest! In the last digest, we talked about the four categories that make up the world of mechanical watches: Established Brands, Haute Horlogerie, Independent Artisans, and Contemporary Brands (read here). Today, we'll dive into the prominent watchmaker brands that dominate the Established Brands category.

Grand Seiko Ref. SBGW235

Established Brands are brands that have been around for a long time and have a reputation for quality and durability. They are known for their classic designs, reliable movements, and rugged durability. These watches are produced in larger quantities than other brands, and as a result, are more saturated in the market than watches from other categories.

There Are Eight Prominent Established Watch Brands

Rolex, Omega, Cartier, JLC, IWC, Grand Seiko, Tudor, and Zenith.

Rolex

Rolex is a brand that needs no introduction. Founded in 1905 by Hans Wilsdorf and Alfred Davis, Rolex is known for its iconic designs, exceptional quality, and technical innovation. The brand is estimated to produce over 800,000 watches each year, and is one of the most recognized and sought-after brands in the world.

The history of Rolex is deeply rooted in the early 20th century when wristwatches were still a relatively new concept. The brand was one of the pioneers of water-resistant watches and was the first to develop a watch that could withstand pressure at depths of 100 meters or more. In 1927, Rolex introduced the Oyster, a waterproof watch with a patented case that protected the movement from dust, moisture, and shocks. A key factor to Rolex’s success is Hans Wilsdorf’s vision for marketing. He led Rolex to become one of the first brands to sponsor incredible athletes in achieving incredible feats. Even James Bond’s original watch is a Rolex. (The author Ian Fleming himself wore a Rolex Explorer 1, and vividly described James Bond’s fit to be incomplete without a Rolex stainless sports watch.)

The Rolex collection includes a variety of models, from sports to dress pieces. Rolex sports models in particular dominate the secondary watch market. In fact, Rolex sports models are more significant than the next few brands combined in demand, liquidity, and allure, making them the perfect first watch for any beginning collector. On the secondary market, prices for most Rolex watches can range from $2,000 to $50,000, depending on the model and condition. Rolex is the best at holding its value on the secondary market compared to other established watch brands

Omega

Omega is an iconic brand that has a long and distinguished history in the watch industry. Founded in 1848 in Switzerland, Omega has been responsible for timing events at the Olympic Games since 1932, and has been worn by astronauts, artists, and the recent James Bonds. The brand is estimated to produce over 500,000 watches each year and is known for its technical innovation, exceptional quality, and affordability (relative to other luxury brands).

Omega has a rich history of producing timepieces that have been used in some of the most significant events in history. In 1936, the brand introduced the world's first watch with a second-hand, the Omega Chronograph. However, it was the Omega Speedmaster that truly cemented the brand's place in history. In 1969, the Speedmaster became the first watch to be worn on the moon starting with the Apollo 11 mission. During the Apollo 13 mission in 1970, the Speedmaster was used to time the critical engine burn that allowed the spacecraft to return safely to Earth after an explosion in one of its oxygen tanks. This feat alone earned the Omega Speedmaster a legendary status amongst collectors that no other watch can touch, regardless of their "grail" status. 

Omega's collection includes a range of models, from the sports models Seamaster and Speedmaster to their iconic dress pieces Constellation and De Ville. In terms of value for money, the right Omega pieces live in a category of their own (we will break these down further in watch buying guides to come). On the secondary market, prices for most Omega watches range from $1,000 to $20,000, depending on the model and condition.

Cartier

Cartier is a French luxury goods brand that was founded in 1847 by Louis-François Cartier. The brand is known for its exquisite jewelry, accessories, and watches. Cartier is estimated to produce around 500,000 watches each year and is synonymous with elegance and class, seen on the wrists of Princess Diana, Andy Warhol, and Muhammad Ali, to name a few.

Cartier's history in watchmaking dates back to the early 20th century when the brand introduced the Santos, a watch designed for Brazilian aviator Alberto Santos-Dumont. The Santos was one of the first wristwatches for men and was a revolutionary design at the time. Since then, Cartier has become known for its elegant and timeless watch designs, and is the watch of choice for artists, royals, and historical figures throughout the past few decades. The brand's watches are typically priced between $3,000 to $50,000. 

IWC Schaffhausen

IWC Pilot Mark XX

IWC Schaffhausen is a Swiss watch brand that was founded in 1868 by American watchmaker Florentine Ariosto Jones, operating out of a German-speaking town in Eastern Switzerland. The brand is known for its technical innovation, exceptional quality, and connection to aviation. IWC is estimated to produce more than 60,000 watches each year and is an especially popular choice among pilots and flying enthusiasts.

IWC’s pilot watches are adored by aviators to time flights and perform navigation calculations. In addition to aviation watches, IWC is also known for its Portugieser Chronograph dress watch. The brand's watches are typically priced between $4,000 to $30,000 at retail, though they typically don’t hold value as well on the secondary market.

Jaeger-LeCoultre

Jaeger-LeCoultre is a Swiss watch brand that was founded in 1833 by a French man Antoine LeCoultre. The brand is known for its exceptional quality and ultra-thin movement designs. Jaeger-LeCoultre produces around 100,000 watches each year. 

Jaeger-LeCoultre is known for its expertise in watchmaking, particularly in the areas of complications and movements. The brand is regarded by the industry as the watchmaker’s watchmaker, since they provided the mechanical movements for most of the industry’s early needs before other brands developed their in-house movement designs. The brand has developed hundreds of different calibers over the years, including the iconic Reverso movement, which features a case that can be flipped over to protect the dial for polo players.

In addition to its technical innovations, Jaeger-LeCoultre is also known for its elegant and timeless watch designs in ultra-thin case profiles, such as the Ultra-thin moon and the Master Control Calendar. The brand also produces a range of complications, including tourbillons, perpetual calendars, and minute repeaters. Jaeger-LeCoultre's watches are typically priced between $5,000 to $50,000. 

Grand Seiko

Grand Seiko, founded in 1960 by Seiko, is a Japanese watch brand celebrated for its exceptional craftsmanship and relentless pursuit of perfection. With a limited production each year of around 40,000 pieces, Grand Seiko prioritizes quality over quantity, resulting in timepieces of extraordinary precision and accuracy. Drawing inspiration from the natural beauty of Japan, the brand incorporates elements such as snow, mountains, and cherry blossomsto capture the essence of its heritage. While Grand Seiko may not have the same level of recognition as European luxury brands, it has gained a devoted following among watch enthusiasts who appreciate its craftsmanship, attention to detail, and exceptional value for money.

One of Grand Seiko's standout innovations is its Spring Drive technology, a unique and patented movement that combines the precision of quartz with the traditional mechanical mechanism. The Spring Drive movement is renowned for its remarkable accuracy, smooth sweeping seconds hand, and extended power reserve. This innovative technology sets Grand Seiko apart from other watch brands. 

Among Grand Seiko's iconic timepieces, the Snowflake model holds a special place. Inspired by the pristine snow-covered landscapes of the Shinshu region, where Grand Seiko watches are crafted, the Snowflake exhibits a distinctive textured dial resembling the glistening snow. The intricate craftsmanship and attention to detail can be observed in every aspect of the watch, from the finely finished hands and markers to the precise Zaratsu-polished case. On the secondary market, prices for most Grand Seiko watches can range from $4,000 to $15,000. 

Tudor

Tudor is a sister brand of Rolex, founded in 1926 by Hans Wilsdorf. The brand is known for producing high-quality watches that are affordable for a wider audience. Tudor is estimated to produce around 250,000 watches each year, and its designs are inspired by its heritage and history.

Tudor's history is deeply rooted in the military, with the brand producing watches for the French Navy in the 1950s and 1960s. In the 1970s, Tudor introduced the Snowflake, a watch that became a favorite among divers and military personnel.

While its big brother brand Rolex is going larger in size and more modern in design, Tudor is offering Rolex/Tudor classic vintage designs with modern durability in their current lineup of offerings. Tudor watches are known for their quality, durability, and affordability relative to other luxury brands in the established brands category. On the secondary market, prices for most Tudor watches can range from $1,000 to $15,000, depending on the model and condition.

Zenith

Zenith is a Swiss watch brand that was founded in 1865 by Georges Favre-Jacot. The brand is known for its technical innovation, exceptional quality, and connection to aviation. Zenith produces around 40,000 watches each year and is highly regarded by collectors and enthusiasts.

Zenith is best known for its El Primero movement, which was introduced in 1969 and was one of the first automatic chronograph movements in the world. Because of this incredible feat, many watch brands such as Rolex used Zenith’s El Primero movement to power their chronograph watches such as the Daytona, before they designed their own in-house movements. The El Primero movement is still highly coveted today and is renowned for its accuracy and reliability.

Zenith watches, including those Rolex Daytonas powered by Zenith movements, are typically priced between $3,000 to $30,000 on the secondary market.

Rolex Day-Date Ref. #18238

And that’s our stroll through the intriguing world of established watch brands, from the pioneering spirit of Rolex to the Japanese precision of Grand Seiko, and the elegance of Cartier to the pioneering chronograph of Zenith. These brands have not just withstood the test of time but also shaped our understanding of what a quality timepiece should be. Through their unique histories and iconic models, they've woven a rich tapestry that continues to captivate watch enthusiasts and collectors alike.

In the next digest we're diving headfirst into the realm of Haute Horology Brands. Brace yourselves for an immersive look into the intricate world of brands like the revered Patek Philippe and the avant-garde Audemars Piguet.