Photo: Courtesy Vacheron Constantin
The Hidden Hand of the Media in Luxury Watch Valuations
In the intricate world of luxury timepieces, where craftsmanship meets prestige, the media plays a pivotal yet often overlooked role. Recent research from Cornell University and INSEAD reveals that the way media outlets mention and associate watch brands can significantly impact their market value, especially at auctions.
The Study: Mapping Media Mentions to Market Prices
Researchers Kim Claes and Frédéric Godart delved into a decade’s worth of media reports and auction data, analyzing how luxury watch brands are portrayed in the press. They introduced the concept of “coreness,” referring to how central a brand is within media narratives based on co-mentions with other brands.
Their findings suggest that brands frequently mentioned alongside other prominent brands tend to fetch higher prices at auctions. This interconnectedness in media coverage enhances a brand’s perceived value and desirability.
Why Being Part of the ‘In-Crowd’ Matters
Contrary to the belief that standing out is the key to success, the study indicates that being part of a well-connected group of brands in media narratives can boost a brand’s prestige. This association creates a cognitive framework for consumers, positioning the brand as a staple within the luxury watch industry. For consumers and collectors, this underscores the importance of media narratives in shaping perceptions of value. Being aware of these dynamics can inform purchasing decisions and investment strategies in the luxury watch market. Dailyscitech
For instance, if a brand like Omega is frequently mentioned alongside Rolex and Patek Philippe, it benefits from the shared prestige, enhancing its appeal to collectors and enthusiasts. For consumers and collectors, this underscores the importance of media narratives in shaping perceptions of value. Being aware of these dynamics can inform purchasing decisions and investment strategies in the luxury watch market. Dailyscitech
Implications for Brands and Consumers
Understanding the media’s influence offers strategic insights for luxury watchmakers. By fostering relationships that lead to favorable media co-mentions, brands can enhance their market position and appeal. For consumers and collectors, this underscores the importance of media narratives in shaping perceptions of value. Being aware of these dynamics can inform purchasing decisions and investment strategies in the luxury watch market. Dailyscitech
For consumers and collectors, this underscores the importance of media narratives in shaping perceptions of value. Being aware of these dynamics can inform purchasing decisions and investment strategies in the luxury watch market. Dailyscitech
