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Enthusiasm for the wholesale model of selling watches first to retailers and then to end-consumers seems to be at an all-time low. It isn’t that brands are greedy to recapture margin, but rather that the traditional wholesale retail environment has failed in at least one very important area; marketing building. That translates into the fact that retailers?– despite investing in buying products?– still don’t seem to have much incentive to promote the brands they carry to their own local markets. The reasons for this are complex, but it has meant that the brand’s themselves have been saddled with the obligation to build consumer demand and awareness (through marketing and advertising) while still promising retailers world-class margins this one is not set via the crown. On the contrary, it is controlled by means of a pusher at 10 o’clock on the face of the circumstance. The joy of this feature is hard to put into words. Never has it been easier or, I might add, more fun to advance the date onto a watch.Now, if someone were to describe (profits on selling watches which average between about 40–50% per watch). Such margins made more sense when watch brands merely produced and delivered products, but these days with the brands having intensive marketing budget obligations, the old model of distributing watches is finally experiencingits last days as the dominant means of placing a luxury timepiece on the the wrist of a consumer.
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Nonetheless both carry the same estimate of HK$1.4m to HK$3.2m, or US$180,000 to US$400,000. The ref. 3970G is lot 1009, while the ref. 3970R is lot 1010.
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