Swatch Royalpop Effect

With the launch of Swatch 'Royal Pop' Audemars Piguet has successfully secured a new consumer base and the value of Royal Oak will only increase further.

Shock in the Watch Industry

The industry was stirred by the news that Audemars Piguet, A symbol of Swiss high-end watchmaking, Is collaborating 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 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

The 'Jumbo' Royal Oak, Allocated so that even customers who have proven their loyalty by purchasing multiple models can only buy one in their lifetime.
https://www.ssongwatches.com

The biggest risk to the value of the Royal Oak is not competing brands or economic downturns, But 'Luxury Fatigue'. This refers to the exhaustion felt by customers who are interested in and fond of luxury brands but are turned away due to excessive emphasis on mystique and exclusivity.

Thanks to SNS and YouTube, The awareness of the Royal Oak is higher than ever, But it is difficult to even enter an Audemars Piguet boutique without a reservation, Supply is limited, And prices start at tens of thousands of dollars.

© Watch Terminal

Brand and model awareness
Shows the high awareness of Audemars Piguet Royal Oak.

© Watch Terminal

Not long ago, 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 went to the Cheongdam Audemars Piguet boutique to buy the Royal Oak she had long wanted. But what greeted us was a cold shoulder. We were told we could not enter without a reservation and left feeling upset."

This acquaintance was a sufficient potential customer for Audemars Piguet, But ended up losing even his fondness for the brand after experiencing
'Luxury Fatigue'.

Audemars Piguet Seoul Cheongdam Boutique
https://www.montreskorea.com

Even those who know the brand well and want the model experience a high barrier 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 to 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 addressed.
However, Some argue that "a certain level of exclusivity and specialness must be maintained for existing customers".

Here, The fact that Royal Pop is a pocket watch is the key 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'm glad it doesn't go on the wrist. If it did, The damage would have been huge."
— Royal Oak owner

And since Swatch is producing Gerald Genta's brilliant design as a lightweight plastic object in various colors, 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 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 created a future customer base in Japan by selling coffee candies to children.

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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 Royal Pop as a plastic pocket watch, Its differentiation from the metal wristwatch Royal Oak remains intact. The satisfaction of owning and wearing a Royal Oak was not shaken even when modification kits to turn Casio G-Shocks into 'CasiOaks' appeared or when Chinese counterfeiters mass-produced sophisticated replicas. In the same context, Royal Pop cannot be a substitute for the Royal Oak.

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However, If Audemars Piguet increases the production of Royal Oak in response to the rising demand due to 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 simple logic. The Audemars and Piguet families have maintained independent management for 151 years over four generations, And they will not make the simplistic mistake of increasing production in response to short-term demand.

Yellow Gold Perpetual Calendar Royal Oak sold for $1.1 million
https://everywatch.com

Royal Oak with impressive bloodstone dial
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Conclusion: The Price of Royal Oak
Can Only Go Up

Sky Blue Dial 15550ST
https://monochrome-watches.com

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

If you see people lining up in front of Swatch stores to buy Royal Pop and paying high premiums in the secondhand 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.