Quote:
Originally Posted by macrowatch
Do you think they will seriously unwind CODE and SS RO pricing? My personal bet is highly doubt it and they will cut production before they do that. (Unless of course big daddy Arnault is in charge).
To OP, Vogel Phenoix data point is spot on. By way of analogy, the ascent feels like Chanel pricing up to Hermes. Will it work long term, who knows. But the premium pricing gap closed between the two at the rate it was closed is the closest analogy IMHO in the luxury space. To this point, I believe the Chanel pricing strategy almost exclusively was made with Asia consumers in mind.
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I don't think they will unwind CODE. They've put too much into it already. As far as pricing, it's hard to say. I've been on both sides of it though. I purchased a 44 CE ROO when retail was in the mid $40's and then they dropped the price about $8k into the 30's not long after. That didn't feel good. lol.
On the other end, I got my SS RO QP this year when retail was in the low $80k's and saw it go up to $106k a few months later. Hard to explain why the same watch is worth $20k+ overnight, but it felt good.
I think it will all depend on macro economics and demand. I sure hope they don't cut prices and reduce production instead as it's not good for the brand overall when you go through price cuts.