High-end watches - a lucrative business

By Susanna Tjokro, s_tjokro@yahoo.com

"It's a status symbol, just like a vehicle. However, while you can't bring your car into the meeting room, you certainly can wear your watch in a business meeting," says my former boss about her Rolex. Several watch brands, such as Rolex and Patek Philippe, are incredibly famous and are considered status symbols, such that many people wish -- or dream -- to have one.

Just like my chic Australian former boss, many Indonesians adore branded items too, from clothes to shoes, from Calvin Klein to Gucci. From New York to Jakarta, people (well, at least some of them) want to be associated with luxury brands and the ones who have money to burn don't even pay attention to price tags -- a Zenith Tourbillon watch will set you back S$186,000 (about US$110,000).

These days, fortunately, Indonesians do not have to travel overseas just to buy, say, a real Breguet watch. Breguet, along with other luxurious timepieces, like Vacheron Constantine and Zenith, are available here in Indonesia. Buyers of high-end products may represent just a small segment of our society, but the market generates lots of money.

Despite economic problems in Indonesia, high-end watches are a lucrative business, and reflects the high importance given to status in Indonesia. The current growth in high-end timepieces segment in Indonesia is about 20%, according to Irwan Danny Mussry, the president director of Time International that owns several luxurious watch boutiques.

It is a lucrative business, as Indonesians are getting increasingly brand conscious, and apart from that, high-end timepieces have always been the choice of those who give importance to quality -- pricing remains a largely secondary matter. After all, luxury watches offer the incredible quality of craftsmanship as well as state-of-the-art technology.

Time International opened Cartier Green Boutique at Plaza Indonesia in 1995. Afterward, to accommodate growing demand, the company opened several The Time Place boutiques, in 1998 (at Plaza Senayan), 2002 (Plaza Indonesia), 2004 (Tunjungan Plaza, Surabaya), and this year, it opened two In Time boutiques, at Plaza Senayan (in April) as well as at Pondok Indah Mall II (in August), reflecting a growing demand for luxurious timepieces in Indonesia.

Time International carries 27 medium and high-end watch brands. Rolex, Vacheron Constantine, Zenith, Panerai, Jaeger- LeCoultre, Piaget and Cartier to name a few of its luxury watch brands. The ones easier on the pocket, say, JLo (Jennifer Lopez) watches, are also on display, priced from S$190 to S$265.

The company also operates The Time Care Service Center, an officially authorized service center for brands carried by The Time Place. "It's really important to buy a watch at an authorized dealer and bring your watch to an authorized service center only," says Irwan.

To help promote sales of timepieces, Time International published The Time Place magazine. It's a high-quality, glossy free magazine, filled with interesting articles in English and Indonesian.

The Hour Glass (a Singapore-based luxury watch retailing group) has opened two boutiques that offer medium and high-end watches as well. The Hour Glass (at Plaza Senayan) was opened in January 2005 and Audemars Piguet boutique opened its doors in 2002. The Hour Glass boutique offers 13 medium and high-end brands, such as Breguet, Patek Philippe, Ulysse Nardin, Harry Winston, Gerald Genta and Daniel Roth. There are 20 The Hour Glass boutiques in seven countries (Singapore, Malaysia, Indonesia, Thailand, Hong Kong, Japan and Australia). Indeed, globally, people are getting more and more brand-conscious.

Audemars Piguet boutique only carries timepieces from Audemars Piguet, one of the most prestigious watch companies in the world; it has been making superb quality watches since 1875. A Royal Oak Offshore Chronograph Automatic is priced at S$35,600, while Ladies' Rubber-Clad Royal Oak Offshore Gem-Set Chronograph carries a price tag of S$56,500 - just to name a few of the luxurious watches available at its boutique at Plaza Senayan.

Buyers of these high-end timepieces are mostly Indonesians. "Ninety percent of our customers are locals," says Derrick Ng, the operations manager of The Hour Glass. Their customers are mostly men, ranging from 20's to 60's. "A watch is the only accessory that men wear, so if a man wants to look good, he should have a good watch and about 70% of our buyers are male," says Irwan, president director of Time International. "Customers are becoming more knowledgeable about watches than ten years ago. Today they can go on-line and learn about market values, watch companies or whatever else they want to know. They are also well- traveled," says Irwan.

Many watch connoisseurs are interested in the history of the brands as well. Many of the internationally famous brands have been making superb quality watches since 17th and 18th centuries.

Patek Philippe, Rolex, Cartier, Breguet and Audemars Piguet are among the popular luxury brands in Indonesia. It is widely accepted that Switzerland produces the best watches and their products are available in every price range, from the cheap to the incredibly expensive.

As for price, well, quality does not come cheap and higher quality products normally equate to higher prices. A Rolex White Gold Cosmograph Daytona with Rolex chronograph movement, the Calibre 4130 is priced at about S$40,850, while a Zenith Chronomaster Open El Primero is priced around S$11,800, the latter being awarded for 'best watch' at the Grand Prix d'Horlogerie in Geneva according to The Time Place magazine.

"We guarantee that our customers get a fair price. We will refund their money if they find exactly the same watch cheaper anywhere else around the region, including in Singapore and Malaysia," says Irwan.

Many buyers see the timepieces as works of art, as well as a good investment, as luxury watches tend to appreciate in value over time and they remain relatively recession-proof. A Patek Philippe watch became the most expensive timepiece ever sold when it fetched $11,002,500, according to Guiness Records (www.guinessrecords.com). The Supercomplication gold watch was sold by Sotheby's auction house on Dec. 2, 1999.

An 18K Gold Patek Philippe wristwatch with Perpetual Calendar and Moonphase, 1961 was sold for $1,012,000 in November 2001, while a Rolex Cosmograph Yacht Master / Paul Newman, 1965 was sold for in June 2001; both are just two examples of the exceptional prices of watches sold by Christie's auction house, according to www.christies.com. Among the twelve watches in the list, eight of them are Patek Philippe and the rest are Rolex, Cartier, Franck Muller as well as a Huaud / Hager pocket watch circa 1680 ($79,100).

A high-quality watch is more than just a way to tell time; it's a work of art that emphasizes craftsmanship and quality, and of course - a status symbol as well, and when you wear a Rolex or Patek Philippe on your wrist, it says you appreciate the finer things in life. "High-end watches cater for customers with a taste for the finer things in life, like the best wines, cigars and cuisine," says Irwan, and in Indonesia, apparently there are many people who appreciate the finer things in life.

As long as connoisseurs of timepieces can afford to splash out S$50,000 or even S$150,000 (or more if you really want to splurge) on a wristwatch; as long as watch aficionados think it's fun to have a wardrobe of watches for different occasions; and as long as people cannot deny the allure of those beautiful, high- quality timepieces, this lucrative market will remain attractive.