Opinions within luxury watch brands regarding discounting tend to generate a heated debate. Many brand leaders see discounting as strategically perilous and potentially harmful to the brand’s image. This view assumes that luxury brands should strive to maintain their exclusivity, believing that discounts erode this cachet. For many luxury watch brands, avoiding discounts is a strategic imperative, a way to valiantly defend the value and prestige attached to their products.
While instances of discounting do occur, they are often painted with broad, negative strokes, casting them against a backdrop of an industry that views discounting as diametrically opposed to luxury brand objectives and ideals. The prevailing belief seems to suggest that discounts are a plague to be fought against relentlessly, with an admiration bestowed on peers who sell watches at, or even above, the retail price.
Recent reports suggest that luxury behemoth Richemont might list its historic watch brand, Jaeger-LeCoultre, for sale. This speculation follows the announcement of Richemont’s decision to sell Baume & Mercier to the Damiani Group. Though the two labels operate on different market levels – with Jaeger-LeCoultre priding itself on a higher-end manufacture approach and Baume & Mercier functioning closer to a fashion brand with outsourced movements – the whispers of this potential sale have sent ripples throughout the horology industry.