DESPICABLE - Omega and Patek

[SLR]

Front page of the WSJ today: Omega watch sold at auction this year for $351K. What Omega doesnt tell you is that the buyer was Omega. Omega never recovered from their 80's decision to compete with the quartz cheap watches, so for most of 2005 and 2006, they strategized with Antiquorum's Osvaldo Patrizzi on how to revive the brand name. The solution, hold a highly-publicized auction and pump up pricing to make Omega a name with cachet, even if Omega has to buy their own watches. Omega bid on 80 lots of 300, outbidding collectors on 46 lots. AND Omega supplied many of the older watches for the sale.

Same goes for Patek Philippe since 1989's first Patek auction. Philippe Stern has been doing the same. from the WSJ, "Mr. Stern became a top Patrizzi client, buying hundreds of Patek watches at Antiquorum auctions, sometimes at record prices. The brand's retail prices soared. Over the next decade, the company began charging about $10,000 for relatively simple models and more than $500,000 for limited-edition pieces with elaborate functions known in the watch world as "complications."" It goes on to quote Philippe Stern as saying, "Certainly, through our action, we have been raising prices."

Ok, I'm a relative noob in the watch world, but the behavior of both Omega and Patek Philippe to artificially pump up pricing at these auctions is, IMO both despicable and unethical. It doesn't matter if these companies are buying from themselves or from private individuals, the premise of a thematic auction held specifically to create branding and raise pricing is wrong. Auction houses that encourage this behavior, namely Antiquorum, should be shut down. Auctions should be what they simply are - auctions. I don't see anything wrong with Omega wanting to buy an old watch back, but to hold a marketing event in the guise of an auction and simultaneously rip off collectors is questionable behavior to say the least. Christie's policy is to tell the bidders when a seller is bidding above a reserve price.

If I owned Patek's and Omega's and realized that the premium I paid for the timepieces was an orchestrated maneuver by the companies themselves (and not by the inherent value of the watches), I'd be infuriated. I, for one, will never purchase an Omega or Patek from this point on. And if there's justice in the world, the exposure of this practice will affect both companies.

[timebroker]

Insiders knew this was going to happen before the auction,
Sothebys auctions were (dunno about now but in the past) 10% fakes, antiquorum actually buys watches themselves, etc etc.
Because they are auction houses it does not mean they are any different from any other company ... sad but true I know.

[SPACE-DWELLER]

That's outrageous!

I HATE shill bidding!

[Fitchy]

Interesting read

[leopardprey]

I prefer Vacheron over Patek, any day!!!

As for Omega, well they are the new "Tool" watches in my opinion.

But, they are becoming a little too "Main Line" for me, as Rolex is becoming to "luxury line" for me.

[Tools]

Originally Posted by leopardprey

As for Omega, well they are the new "Tool" watches in my opinion.

But, they are becoming a little too "Main Line" for me, as Rolex is becoming to "luxury line" for me.

I don't know about becoming too main line....They're still ~2,000 bucks a pop for a decent one.

But, I do feel that Omega is filling the gap left by the Rolex price hikes the past couple of years..

As far as the auctions....it's marketing and manipulation. Lot's of free media attention when a watch goes for that much money....

[leopardprey]

Well, what I guess by being Mainline. Featured in the new Bond Movies, are now sold at the Army and Airforce Exchanges, and see more and more people starting to wear. Especially all the Brits that use to work for me, Omega was their preferred choice. Omega was the first Swiss Watch I bought and it served me well, and now is serving my brother. Becoming very popular in Asia.

[roadcarver]

Omega did say that they were bidding for the watch cause they wanted it for their museum.

[SPACE-DWELLER]

Originally Posted by roadcarver

Omega did say that they were bidding for the watch cause they wanted it for their museum.

What else should they have said??

"Hey, we're OMEGA, and we're engaging in this auction in order to be able to inflate prices and get lots of FREE publicity!"

[roadcarver]

It would have been worse if they employed someone to do the bidding for them.

Originally Posted by Spacedweller

What else should they have said??

"Hey, we're OMEGA, and we're engaging in this auction in order to be able to inflate prices and get lots of FREE publicity!"

[Tools]

Since we're talking Omega...

I do believe that Omega is spending their marketing money where they can get the "best bang for the buck".

The latest Bond movies are a case in point....The producers didn't switch to Omega out of the kindness of their hearts...There's large amounts of money involved for both them and Omega here.. The 007 themed Omegas are one of their biggest sellers now.

I believe that Omega can see there is a huge void in the sport watch market, the fastest growing share, in the 1,000 - 4,000 dollar niche. I think they intend to fill that void..

And Omega watches are not slouches either; I applaud their efforts..

I just wish they'd bring back the white face GMT..

[SLR]

Originally Posted by roadcarver

Omega did say that they were bidding for the watch cause they wanted it for their museum.

Philippe Stern said the same thing about the Patek auctions. It's the only justification for what's otherwise seen as blatant brand manipulation. Odd that they would supply their own antique pieces for the auction and then buy them back.

I do realize of course that this is brilliant marketing, provided no one finds out who the winning bidders are. And as Larry mentioned, spending their marketing dollars where it counts. It's just that even after buying movie placement and celebrities, they still can't reach the status and reputation of the high-end boutique watchmakers, or Rolex. So the auction with Antiquorum was a different tact. Omega realized that pricing is mostly about perception of their brand, which they tarnished in the 80's and they've got no one to blame but themselves. Maybe this is idealistic, but I'd like to think pricing is based on inherent value as well.

[leopardprey]

Damn you Tools!!!!! I had an opportunity to buy a BNIB OMega White GMT in Cambodia in June for $1600 at the Omega AD. And I passed it up! Actually I think it is still there!


To be very honsest, Omegas in many ways IMHO are equal to, if not better than Rolex. TH several thousand extra you pay for a Rolex is more for the Brand Name rather than watch improvement. It was a shame that Rolex priced itself out being affordable to many soldiers and now Omega is starting to fill that void. Up until the mid 90s you could buy a Rolex at the PX, now they sell Omegas. Omegas have had great bracelets, cases that are rounded and smoothed out, nice case back engraving, domed crystal with AR coating, and the movements, especially the new co-axial movements are really good!!

[timebroker]

There was a thread on here some time ago which claims there are problems with the co-axial movement?

[Robb]

Originally Posted by leopardprey

Damn you Tools!!!!! I had an opportunity to buy a BNIB OMega White GMT in Cambodia in June for $1600 at the Omega AD. And I passed it up! Actually I think it is still there!

What was the msrp on the GMT Chad??????

[leopardprey]

I think MSRP was around $2200 IIRC.

[JAD3703]

Yep, I read about this inflating of bids via manufacturers. Can't say that I'm surprised, really.

And now Antiquorum's entire business model is under the scrutiny of PWC, called in for an external audit by the new board, which ousted Patrizzi and his board while they were on the traditional mid-July to mid-August watch industry's holiday.

Nasty stuff, all around. I wonder if companies like Omega understand the ethical line they cross when they do business this way, though? Artificial and secretive schill bidding is always dangerous and tends to be not well received when found out. And it does not mitigate the perception of such actions when you say after the fact that it's for the musuem.

Having said all of that, I really do love my Omega SMP 300M Chrono Diver. Excellent timepiece.

James