All luxury products aspire to be veblen goods. It's about perception, not objective "value" to the consumer. If the market leader increases prices and you don't then uninformed people (which there are a lot) will tend to perceive your good as being inferior. I don't think Omega think they can beat Rolex just by increasing their prices but they want the perception that their goods are somewhat equitable. So I don't think it's a losing strategy at all but hardly a winning one either.
I buy all my watches because I like them with zero regard to resale value. They're not investments, they're simply things that bring me joy.
Why some people feel to need to devolve every discussion into Omega vs Rolex is beyond me.