JP/6/Watch

JP/6/Watch

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.

The writer can be reached at s_tjokro@yahoo.com