With the launch of Swatch 'Royal Pop' Audemars Piguet has successfully secured a new customer base and the value of the Royal Oak will rise even further.

Shock in the Watch Industry

The industry was abuzz with the news that Audemars Piguet, A symbol of Swiss high-end watchmaking, Has partnered with Swatch to release its most iconic collection, The Royal Oak, In a bio-ceramic (plastic) version.

On online communities, Reactions such as "This collaboration is not on the same level" and "I want to throw away my Royal Oak" were even observed, So it is true that negative views were dominant.

However, I think the opposite.
I believe this collaboration can effectively resolve the long-standing issues Audemars Piguet has faced, Increase demand for the Royal Oak and ultimately serve as a catalyst to further raise its price.

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Let us analyze the impact that the 'Royal Pop', A collaboration between Swatch and Audemars Piguet, Will have on the value of the Royal Oak from the perspective of supply and demand.

Reason for Increased Demand 1.
Solving Luxury Fatigue

For customers who have proven their brand loyalty by purchasing several models, The 'Jumbo' Royal Oak is allocated so that only one can be purchased in a lifetime.
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The greatest risk to the value of the Royal Oak is not competing brands or economic downturns but 'Luxury Fatigue'. This refers to the fatigue experienced by customers who are interested in and fond of the brand but are turned away due to excessive emphasis on mystique and exclusivity by luxury brands.

Thanks to SNS and YouTube, The Royal Oak is more recognized than ever, But it is difficult to enter the Audemars Piguet boutique without a reservation, Supply is limited, And prices start from tens of millions of won.

© Watch Terminal

Awareness of watch brands and models
High awareness of Audemars Piguet Royal Oak.

© Watch Terminal

Recently, I heard a 'horror story' about an Audemars Piguet experience from an acquaintance:

"My wife gave birth to our second child. As a gift for her hard work, I visited the Cheongdam Audemars Piguet boutique to buy the Royal Oak she had long wanted. However, What we first encountered was being turned away at the door. The cold response that we could not enter without a reservation left us feeling upset as we left."

This acquaintance was a sufficient potential customer for Audemars Piguet but ended up losing even the affection he had for the brand due to experiencing
'Luxury Fatigue'.

Audemars Piguet Seoul Cheongdam Boutique
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Even those who know the brand well and want the model experience high barriers to entry just by visiting the store, And the image of actual owners is often disappointing compared to the brand's mystique marketing. In this context, The collaboration with Swatch is a brilliant marketing move that elevates the Royal Oak as a design icon and allows it to be loved by the public.

Reason for Increased Demand 2.
Securing a New Customer Base

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There is agreement that Luxury Fatigue must be resolved.
However, There is also the counterargument that "some degree of specialness and exclusivity should be maintained for existing customers".

Here, The fact that the Royal Pop is a pocket watch is the 'killer point' of this collaboration.

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First, Since it can be hung somewhere with a lanyard instead of a bracelet, It is more likely to be consumed as an accessory than as a watch.

"I am glad it does not go on the wrist. If it did, The damage would have been significant."
— Royal Oak owner

And since Swatch has produced Gerald Genta's genius design as a lightweight plastic object in a variety of colors, It is expected that the sales volume will far exceed what Audemars Piguet could have achieved on its own.

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So what will young consumers who experience the Royal Pop think? Perhaps they will dream of "one day owning a Royal Oak". Just as Ferrari positions itself as a 'dream car' by selling hats with the Ferrari logo, And Nescafe creates future customers by selling coffee candies to children in Japan.

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Supply Remains the Same,
Only Demand Increases.

Royal Oak Perpetual Calendar Openworked
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Thanks to the release of the Royal Pop as a plastic pocket watch, Its distinction from the metal wristwatch Royal Oak has not been compromised. The satisfaction of owning and wearing a Royal Oak was not shaken even when kits to modify Casio G-Shock into 'CasiOak' were released or when Chinese counterfeiters mass-produced sophisticated replicas. In the same context, The Royal Pop cannot be a substitute for the Royal Oak.

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However, If Audemars Piguet increases the production of the Royal Oak in response to the rising demand due to the Royal Pop, It could lower the perceived value of the brand and the watch among existing collectors and potential customers. But Audemars Piguet is not a brand that operates on such a simplistic logic. The Audemars and Piguet families have maintained independent management for 151 years over four generations, And this brand will not make the simplistic mistake of increasing production in response to short-term demand.

Yellow Gold Perpetual Calendar Royal Oak auctioned for $1.1 million
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Royal Oak with impressive bloodstone dial
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Conclusion: The Price of the Royal Oak
Can Only Go Up

Sky Blue Dial 15550ST
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The conclusion is simple. Demand increases while supply remains the same. As this excess demand intensifies, The resale premium for the Royal Oak is maintained and the retail price rises.

If you see people lining up in front of Swatch stores to buy the Royal Pop and paying high premiums in the secondary market, You should consider which Royal Oak suits you best.

Royal Oak for those with slender wrists, Royal Oak for those who want to experience complications, Royal Oak for those who value 'tradition', All can be experienced through VIVER.