Audemars Piguet X Swatch "Royal Pop"

Unless you're a student of horology -- and perhaps even if you are -- you may be perplexed by news reports this week that people are getting on a five-day line to buy a watch. Yes, a watch. The release date is Saturday and, for the inconvenience of sitting in that line, consumers will be granted the privilege to buy a single watch for $400. Just one, no more.

Even odder than that, the watch is a collaboration by two companies, Swatch and Audemars Piguet. If you know watches, this is akin to Ferrari teaming up with Taco Bell. An elite luxury manufacturer working with a pedestrian watch company. What?!

To understand this you need some context. True luxury watches cost around $50,000. Ordinary watches range from $50 to $10,000. The difference in price is due to craftsmanship. Luxury watches are made by hand, almost exclusively in Switzerland. Ordinary watches are made by machines everywhere.

The first question that comes to mind is why would someone pay $50,000 for a watch? The answer is three-fold. First, appreciation of real craftsmanship honed over centuries. The second is that luxury watches, unlike ordinary ones, appreciate in value. If you buy one today, it will likely be worth more in the future. No ordinary watch will ever recover its purchase price. Third, people are social animals and love to brag about what they own. Showing off a fancy watch is like wearing expensive jewelry. "Hey, look at this!"

Obviously for $400 you are not getting a handmade watch. The new model (Audemars Piguet X Swatch "Royal Pop") is fully machine-made. Further distinguishing it from luxury watches is its bright color. (There are 8 hues to choose from.) The watch's design references Pop Art of the 1950s (especially Andy Warhol's work). 

Why is Audemars Piguet doing this? It wants to lure new young buyers into the industry. Get them excited so, down the road, they'll graduate up to real watches. With all the media buzz this model is creating, that may be marketing genius.

Why is Swatch doing this? They had success a few years ago with their "MoonSwatch", a collaboration with another company (Omega). The difference here is that Swatch and Omega are owned by the same conglomerate whereas Audemars Piguet is an independent company.

A final point: the watch being sold is a pocket watch, not a wristwatch. The watch industry is pivoting back to pocket watches as homage to its origin. In the beginning for several centuries pocket watches were the only watches made. Then when wristwatches began, only women wore them. Men used pocket watches; women wore watches on their wrist. Only after the World War did men start wearing wristwatches. During the War pilots and soldiers found wristwatches more functional and carried that preference home.

Instead of hiding your new $400 watch in a pocket, many buyers will wear theirs around their neck or hang it from a handbag like a Labubu. Really. That's where we're heading. A trendy item, brightly colored, possessing social cachet. That's why people are waiting in line for five days...