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luxury Swiss watch sales down 10%

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https://www.theguardian.com/business/2017/jan/26/swiss-watch-sales-fall-10-per-cent-china-corruption-crackdown

Quote

Sales of luxury Swiss watches dropped by 10% last year following a crackdown on corruption in China.

The Federation of the Swiss Watch Industry said 2016 watch exports fell by more than 2bn Swiss francs (£1.6bn) to SFr19.4bn as the Chinese bought far fewer luxury watches, which have been used to grease the wheels of politics and commerce in the world’s second-largest economy. It was the worst year for the Swiss watch industry since 2009, when sales declined by 22% due to the global financial crisis.

The federation said sales in Hong Kong and China have fallen by 25% and 22% respectively in the four years since the Chinese president, Xi Jinping, announced a campaign against rampant corruption that he said threatened to “doom the party and the state”.

Tick tock...

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I do wonder how much smart watches have eroded the market?

To me a Rolex is little more than Jewellery, limited functionality and no more accurate than £5 1980s black plastic digital watch.

Am I missing something?

I could easily have bought several £10k watches the last 20 years, I just don't see the point.

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34 minutes ago, Mikhail Liebenstein said:

I do wonder how much smart watches have eroded the market?

To me a Rolex is little more than Jewellery, limited functionality and no more accurate than £5 1980s black plastic digital watch.

Am I missing something?

I could easily have bought several £10k watches the last 20 years, I just don't see the point.

People are buying stuff to make themselves look rich and to store wealth/get rich quick.

I could have bought a house any time in the last 10 years...why didnt I ?  there is no value in them, there is a lot of money to be lost.

All houses offer shelter.

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As is so often the case.... The Daily Mash is on the case

 

http://www.thedailymash.co.uk/news/society/mans-luxury-watch-successfully-impresses-fellow-twats-20161024115895

 

was so much to love here, but it was the gratuitous use of "bellends" that made me chuckle the most!! As in...

 

"A MAN’S ludicrously expensive wristwatch has gained him the respect of other total bellends, he has revealed."

 

B2

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I got fed up with mechanical watches breaking, and bought a Casio f-91W

Then I upgraded to the w800h-1-av because I wanted to be able to see the time when using the stop watch at a glance without pressing any buttons.

http://www.casio.com/products/watches/classic/w800h-1av

I've got them both on NATO straps. The plastic ones they come with are awful.

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Still have my original g-shock DW-5000C from 1983/4. New battery 3 weeks ago (£7). Prefer it to my 15 year old breitling which needs a battery (£520 with service). The Breitling is the only thing I own worth more than £600 that is not a vehicle / house. 

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3 hours ago, ChewingGrass said:

I've just taken to nuclear ones with TLS light sources in them, means I can tell the time in total darkness without revealing my position

Are you a sniper with some Yorkshire Puddings in the oven?

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4 hours ago, Mikhail Liebenstein said:

I do wonder how much smart watches have eroded the market?

To me a Rolex is little more than Jewellery, limited functionality and no more accurate than £5 1980s black plastic digital watch.

Am I missing something?

I could easily have bought several £10k watches the last 20 years, I just don't see the point.

Luxury watches are also used for their cash-like qualities (bribery, store of value).

2 hours ago, btd1981 said:

JHC I used to have an F-91W at primary school, almost 30 years ago. They still make them? :o

Apparently the watch of choice amongst some very specific groups of people.  (see here)

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The only way I can justify my Rolex is that it has gone up some 45% in the last two years - that's better than bricks and mortar and I don't have to worry about replacing the boiler or voids - innit?

In a world with .00001% return for capital at the banks, money will go anywhere and everywhere

 watches = crap jewellery = art = put your money somewhere and hope for the best

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My view would be that not a small factor is the growth of bitcoin in China.  Why?  Because high end watches were a wealth preservation tool used by many of the new rich - buy a dozen and hide them in your apartment/garden/ancestral village. 

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13 hours ago, GreenDevil said:

Never wear my submariner, some scumbag would prolly mug me. 

Do you find that many people notice? I've owned two separate Omegas since 2007 and think less than ten people have ever a.) spotted the watch, b.) asked about it and c.) known enough about watches to know what is worth any money.

12 hours ago, hp72 said:

Still have my original g-shock DW-5000C from 1983/4. New battery 3 weeks ago (£7). Prefer it to my 15 year old breitling which needs a battery (£520 with service). The Breitling is the only thing I own worth more than £600 that is not a vehicle / house. 

So what do you own c£600 or less that made you use that as a cut off?

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Current changes to salary sacrifice schemes will impact this market as well. I work for a large bank and a number of my colleagues have used salary sacrifice to buy goldsmiths vouchers at a 40% discount to face value (ie higher rate tax payers) and then used these vouchers to buy a Rolex or similar. To these people they are getting a Submariner for Tag Carrera money. 

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17 hours ago, knock out johnny said:

The only way I can justify my Rolex is that it has gone up some 45% in the last two years - that's better than bricks and mortar and I don't have to worry about replacing the boiler or voids - innit?

In a world with .00001% return for capital at the banks, money will go anywhere and everywhere

 watches = crap jewellery = art = put your money somewhere and hope for the best

Rolex well out of my price range but the few I looked at on the internet I've never seen anything as garishly tacky. Saw one for 33k and it just screamed chav not elite sophistication.

Although as with all potential investments it's all down to luck.

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My wanky old Omega is still going. I won it in a card game, and it's all scratched now. I probably won't buy another one, as I'm not Chinese or bent!

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I recently put my Omega in for it's 5 year service. They forgot to put a bit back in (or damaged it) when they returned it. I googled and found out the problem and told them when I took it back. They were very apologetic and all but still for the money paid very un Swiss like. 

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The other thing that nobody seems to mention is the higher rate of tax on dividends. 7pc is quite a lot extra

 

I've got an iwc and a breitling. Find rolex too tacky, i wouldn't mind a hublot black magic but can't justify it.

 

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On 26/01/2017 at 9:49 PM, GreenDevil said:

Never wear my submariner, some scumbag would prolly mug me. 

Not much point having it then?

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On 26/01/2017 at 8:32 PM, Mikhail Liebenstein said:

I do wonder how much smart watches have eroded the market?

To me a Rolex is little more than Jewellery, limited functionality and no more accurate than £5 1980s black plastic digital watch.

Am I missing something?

I could easily have bought several £10k watches the last 20 years, I just don't see the point.

I would say a Rolex (or any other fine watch) is exactly jewellery for men.

I think you can divide Rolex purchasers into two - those who want to mark a significant achievement - a promotion, or special birthday/anniversary and want a reminder they can use all day, every day for the rest of their lives. It is certainly not for "bragging rights" as no-one notices or cares what another person has on their wrists.

Then there are the collectors who go nuts over a red font or Comex logo on the dial. Strange, but no more illogical than collecting stamps or something.

I personally bought a Rolex with the money I saved since I gave up drinking four years ago. I could have kept that money in a bank account earning 1% interest, or bought some shares and risked losing a chunk (BT). Instead what I have is a daily reminder of my achievement, in an item that is unlikely to lose much in real value over the long term not that I intend to sell it. 

I know of at least two people who have purchased a Rolex with money left to them after a close family member passed away. Again I'm sure it serves as a daily reminder for them.

Comparisons with smart watches and digital watches are a little like asking why there is a market for Range Rovers when a second hand Golf estate will do the same job. 

As to why they are so expensive, this Forbes article isn't specifically about Rolex but the principle is the same…  

http://www.forbes.com/forbes-life-magazine/2009/1102/big-time-finishing-touches-watches.html

It’s fair to ask why a top-notch timepiece is so expensive. But when you multiply the number of hours it takes to hand-finish just one part–more than half a day in some cases–by the number of components in the movement and then by the number of years it takes to learn how to finish a piece of metal the size of a fly antenna, it’s easier to see how the price starts to add up. It’s the hundreds of hours of human skill concentrated in a cubic centimeter

 

 

 

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I guess I got a watch because I saw one at a "clock fair" in the 90s. I used to fix clocks, for old ladies. So many were not wound up, for such a tiny fault! I could fix that, but there is no money in it.

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