Could Controlled Discounting be The Secret to Satiating Luxury Watch Lovers and Boosting Sales Figures?

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.

The stance on discounting, in essence, should be about striking a balance. A stringent refusal to give discounts might keep the superficial prestige associated with the brand intact, but it could also create barriers to broadening the customer base. On the other hand, controlled discounting, handled with sophistication and strategy, could indeed pave the road to higher sales and happier customers, without compromising the brand’s luxury appeal.