Vol 4 - Market Breakdown by Watch Brand Categories
Last updated: Nov 2023 | Est. 6 mins
Welcome back to the Oliver Digest, where we talk about all things watches without the influence of dealers and industry sponsors.
In the last digest, we talked about the different designs of mechanical watches today (read here). In this volume, we’ll break down the notable mechanical watch brands that makeup majority of today’s watch market transactions.
Patek Philippe Ref. #5004P
Today’s watch market has four major brand categories:
1/4 - Established Brands
Established Brands are brands that have a strong grasp of aesthetic designs, have a reputation for quality and durability, and produce in high quantities.
These brands include Rolex, Omega, IWC, and JLC. These brands typically produce 200,000+ pieces per year, and as a result, are more saturated in the watch market today than watches from other categories. They are known for their classic designs, reliable movements, and rugged durability.
On the secondary market, prices for most of these watches can range from $2,000 to $50,000, depending on the model and condition.
Editor’s Note: For those beginning their collecting journey, this category is often recommended by seasoned collectors. These brands produce some of the most iconic pieces, exemplify timeless designs, have consistently strong market demand for your liquidity, and offer the most value for their price.
2/4 - Haute Horlogerie
Haute Horlogerie is a category that represents the pinnacle of watchmaking, with a focus on the endless pursuit of craftsmanship and complicated movements.
Brands such as Patek Philippe, Audemars Piguet, and Vacheron Constantin fall into this category. These watches are typically produced in smaller quantities (between 5,000 - 100,000 pieces produced a year) and are often handmade, which contributes to their lower production quantities and higher price points. They are known for their intricate complications, such as perpetual calendars and tourbillons, and their exceptional finishing.
On the secondary market, prices for most of these watches can range from $20,000 to $300,000, depending on the rarity and complexity of the watch. Coveted pieces from these brands are typically seen as “grail” pieces by most collectors, where people are inspired to achieve more to add these pieces into their collections with achievement/life milestones.
Editor’s Note: While Haute Horlogerie pieces are fantastic additions to any collection, it's important to note that they can be more delicate and fragile than watches from established brands. Therefore, seasoned collectors would typically not recommend these pieces as your first watch if you're looking for a daily wear. It's best to have at least one watch from an established brand such as Rolex and JLC for your heavy-duty daily needs. With increase in watch theft crimes around the world, there would also be less decision friction to put on a $15,000 Rolex GMT-Master each morning than the risk calculation friction to put on a $100,000 Patek Philippe Nautilus each morning.
3/4 - Independent Artisans
Independent Artisans are smaller, more independent brands that focus on unique designs, handcrafted movements, and often the most extreme attention to detail.
Examples of brands in this category include FP Journe, Richard Mille, and Philippe Dufour. These watches are produced in even smaller quantities than Haute Horlogerie watches, often with just under 5,000 pieces produced each year. These watches are known for their innovative designs, exceptional finishing, and use of exotic materials.
On the secondary market, prices for most of these watches can range from $50,000 to $1,000,000, depending on the watch and brand provenance. This space is typically visited by a niche group of collectors.
4/4 - Contemporary Brands.
Contemporary Brands are brands that offer a more modern take on watch design, with a focus on relative affordability and functionality.
Examples of brands in this category include Nomos, Hamilton, and Junghans. These watches are produced in larger quantities than Haute Horlogerie and Independent Artisan watches, and are often made using modern manufacturing techniques. They are known for their clean, minimalist designs, reliable movements, and affordable price points.
On the secondary market, prices for these watches can range from $200 to $4,000, depending on the model and condition. German brands inspired by the Bauhaus design movement dominate this sector, and they are indeed some of the cleanest, purest modern executions of watch design aesthetics.
In conclusion, I hope my breakdown of the watch industry today by brand categories can give you a better understanding of the lay of the land as you grow in your collecting journey. Each category has its own unique qualities, and there are watches available for every budget and taste. Whether you're looking for a classic Rolex, a complicated Patek Philippe, or a modern Nomos, there's a watch out there for everyone.
In the coming weeks, I’ll breakdown the specific watch brands that make up each category. Get ready to learn all about the provenance of individual brands like Rolex, Omega, IWC, and JLC next week, followed by Patek, AP, and others in the coming weeks.
