Silver Snoopy order process may drive me away from Omega

cvalue13

Mechanical watches used to be utilitarian, a long time ago, and accordingly they came at utilitarian prices and through utilitarian channels.

Mechanical watches are now only luxury jewelry, and accordingly they now come with all the trappings of luxury products and marketing.

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Just a casual google of “principles of luxury marketing” brings out hundreds of marketing agencies laying out the ground rules of luxury markets - here’s just one, summarizing the 8 P’s of luxury marketing:

(1) PERFORMANCE: the product does its thing very well (e.g., precision, etc.)

(2) PEDIGREE: history = mystique

(3) PAUCITY: natural paucity (e.g., precious metals), or tactical paucity (e.g., induced scarcity)

(4) PERSONA: what the brand is known for (e.g., manly endeavors vs lovers gifts), and how it’s communicated to buyers

(5) PUBLIC FIGURES: endorsements from people who reflect the above-noted Persona

(6) PLACEMENT: from store locations, to salesperson dress, and sports endorsement decisions (e.g., tennis not ping pong)

(7) PUBLIC RELATIONS: used to generate buzz and convey brand identity/news

(8) PRICING: make the price high to meet image expectation, but don’t jump the shark

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The Swiss watch industry appears particularly subject to this dynamic. Having read through the last few years of financial analysts reports about the luxury Swiss watch industry, the repeated view is that Swiss mechanical watch companies are subject to certain market forces that mean they MUST succeed in selling every unit, and for secondary prices to not fall below MSRP. Otherwise, say the analysts, these companies are circling the drain, financially.

Selling every unit and keeping secondary prices above MSRP fits nicely with many of the 8 P’s, but especially tactical scarcity: ensuring a long waitlist simultaneously achieves luxury image/hype, and financial strength.

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If a casual google of luxury marketing principles can so quickly summarize what luxury brands like Omega are (and must be) about, it’s puzzling to me that so many here seem to take continuous offense to it.

At some point, the fault for such outrage has to lay in the person still not picking up the signals here. We’re buying luxury jewelry, from luxury companies, with luxury marketing - and it’s not because they’re evil, but instead because they want to stay in business.

Apple watches are cheap, and you can buy one on Amazon for delivery by the end of the week.

TechFounder

As I've said previously, if you want to know where the industry is headed, take a good look at the camera market. We're seeing similar trends playing out in the Swiss watch market now from Smartwatch sales. Think of Canon and Nikon as Rolex and Omega, and Leica as Patek. I like to joke that someday, Leica will be selling $50k cameras to their 500 customers. Leica played the same game as what Rolex is doing now and Omega is about to. It will only work for so long but the long-term trends are not great. Not to mention what the brand now represents. When people see someone with a Leica, envy, and prestige are probably the last reactions associated with ownership.

TechFounder

Hmm, I'm not sure what part of mass-produced machine-made parts that you don't understand? Couple that with huge over-capacity last year where they had to drastically reduce production due to a lack of demand. I'm not sure what else I can say to make it any clearer?

EricCsN

not good comparison
nikon is dying - lost a lot of money in 2020 (coolpix , nikon 1, dslr are dead and came in too late and too little for full frame mirrorless and dependent on its competitor sony for its camera sensor). leica is affordable doesnt cost as much as a luxury watch and poor enthusiasts - as will all class of leica fanboys - will also buy it and some of them even at the expense of rent, housing and basic living and necessities. sony now second (overtaken nikon) and fuji third with attractive medium format cameras to compete with full frame. And in general, phone camera killing camera companies (point and shoot cameras are dead); more consolidation ahead for them (Mount Olympus has already fallen a couple of years back)

J jayhawaii22

What do you think will hold its value more say in 5-10 years--- a 50th Snoopy or the 321 Ed White?

J jayhawaii22

What do you think will hold its value more say in 5-10 years--- a 50th Snoopy or the 321 Ed White?

stevec14

I couldn’t tell you whether I’ll be alive in 5-10 years, but likely the snoopy.

value is more than just what a bloody watch is worth. How about how it makes you feel for the next 5-10 years. Isn’t that worth something?

I’d rather wear a watch I enjoy and lose a few quid in doing so than wear one I don’t like that much but is worth more than what I paid.

where’s the fun in that?

TechFounder

Sorry, that's not how it works.

Omega produces close to a million watches a year. Do you know how many that is per day? Do you really think they would have a hard time cranking out an extra 25k watches of a particular model if they wanted to? Last year, they reduced their production from around 900k down to 500k. They are dying for more business, not less. They could literally fill all of the worldwide demand for 321 and Snoopy in a month if they wanted to. Remember, they are mass producers of watches with machine-made parts. This is not Patek where they're hand finishing and hand producing parts. It's all automated. They have hand assembly in an assembly line fashion. Rolex, for example, has a machine that cranks out baseplates at 100 a minute (that's 144,000 every 24 hours). It spends most of the day like the Maytag repairman, doing nothing. I find it laughable that people believe the lie that they can't meet demand.

The only reason Omega chooses not to is that they've learned from Rolex that it pays to fool their customers. The more they pretend that there's a shortage, the more people think that they have something valuable. Just look at all the people here pinning for one as if they're missing out on the next great thing.

sgrenald

Well...I got on a list at an OB today. No money up front, with the watch expected in 24-30 months. Which is fine with me. 😎

EricCsN

on the list means nothing, where I am (just one country) the waiting list is already many thousands long enough to buy out the whole production line.

mjb

Weel, I tried to quote the OP but my technological failings have struck once again. What I wanted to say to him was that I did understand the original rant and the subsequent one, and I didn't think and still don't think you deserved those nasty comments directed your way. I get your frustration. I am not in the medical profession, but I have been a patient (not Covid, just typical stuff). And yes, we all have been under some additional strain over the past year, but you guys and gals have certainly borne the brunt of it. Thank you for that.

I spend more time than is healthy on the Rolex forum, and the amount of complaining, teeth gnashing and outright anger toward Rolex and the inability to purchase a Daytona/GMT/Submariner at MSRP is just sad. It really is, just sad. It's a freakin' watch. Go buy something else. There are plenty to choose from. Omega, for instance. LOL

As for the Snoopy, yes, I wanted one too. Then I read that only OBs would take deposits, and I don't have one close by, and with the lockdown, I don't see me traveling to NYC any time soon. By the time I decided to go ahead and try anyway, it was too late.

So I have moved on. I've probably bought 3 watches since then, all for less than what the Snoopy costs. Do they have a dog spinning around on them? No. But I can wear them now, not some day in the future.