Counterfeit resistant watch, will this strategy work?
October 22, 2008 : Posted by: Roman : Category: Business : Add Comment
CONDÉ NAST PORTFOLIO had a very interesting article today on how companies are developing ways to make their watches hard to copy or replicate. To sum it up, Vacheron Constantin created a watch (Image above) that is extremely hard to copy. Making or saving the company million because there theory is that the people who were buying the counterfeit watches will be buying the originals instead.
There are 2 issues with this strategy. The first is that they are expecting that the new watches will not be duplicated in the near future. That is a horrible way of thinking, new currency bills are replicated in a matter of weeks. If there is money in making copies someone will have copies out. The second, most the people who buy the fakes will not be buying the original watch for 30-40 thousand. If they could afford it then they would not be shopping for a fake on Canal Street.
What do we learn from this? Know your target market! Your clients all want a similar experience. In this case they want to feel as if they are in a club that has a very high cost of entry. This is a perfect niche/ space for watches that cost 30,000-40,000. But, you can always spot a fake on a person who should not have that type of watch. Now as for the person who can afford the watches and don’t wear the real ones. That is simple why invest into something that you will break in a week. A 60 dollar copy works great for people who tend to break there watch faces in a short time. People buy what works for them not what the companies want them to buy.
For all the capital that they spent in preventing knock offs these companies could have created secondary brands that target this market in particular. People always need good cheap watches and if they have a similar look to an expensive brand that will be great for everyone. This strategy of knowing your markets worked great for Gap, old navy and Banana Republic. Each brand targets a specific niche of the market. Each brand has its own price ranges that reflect their markets.
