Why are RICHARD MILLE Watches So EXPENSIVE?? - Explained

so why are rooster Mill watches so expensive well I got my trusted RM expert in-house and he's going to tell us so stay tuned to find out [Music] all right Adrian so over the last let's say three to five years Richard Mill Market specifically has really exploded in popularity what in your opinion or your perspective has contributed to Richard millwatch as being so expensive the reason for their success ultimately is they are the best marketers in the business and for whatever reason that specific brand caught fire with all markets starting with the Asian market the Dubai the Arab Market the European market as well as the United States Market I never had experience you know handling or seeing Richard Mill watches right we've had you know 6501 Split Second chronographs for example we've had a number of different ones with you know alternative case materials ntpt and the likes really richer Mill were the Pioneers unless we forget a lot of their Tech comes from Renault and Poppy right which is now owned by AP and there's no denying in my opinion the technical side of things right as much as we may say okay yes they have amazing advertisement and all this stuff you know when the rm001 was was first invented and launched in the market in 2001 it was the first tourbillon of its kind that was actually shock resistant so you are right in that and there's nothing against the engineering or their movements or anything like that but there's two type of people there's some there's there are people that love the watch and there are people that don't love the watch I remember when I first saw it in this business the whole hype was AP Concepts yeah okay right so the AP concept one was pretty much the uh The Godfather 2 of Richard meal correct so you had these incredibly incredibly sporty watches that were essentially racing machines on the wrist that's how they Market themselves right restart meal kind of tapped into that market the concept market and I started to see a lot of concept people switch to Richard meal first off the watch is far far far more comfortable than any type of concept and and then I noticed Trends in terms of uh overall popularity in the Asian market it was right around 2016 where we really just started selling them like very very hot and heavy and uh there was a guy in Indonesia I used to deal a lot with and I asked them very specifically I'm like hey what you know what's going on here and his response was restart meals due to the lack of supply of the of the product is a hedge against our Dollars currency and that's what the bottom line is they would have rather had reshardened meal money parked than Richard meal than in their currency because their currency was so volatile which is pretty incredible to think about right I mean it really was almost the precipice of the idea of watches as kind of a store of value as before like it was thought of right because if you go back five years you know Watchers as an investment was I mean I don't think anybody was talking about what he was talking about right nobody was really talking about or at least a store of value or things of that nature right so it really was in some cases you know an investment watch before the term investment watch what was it right and you mentioned kind of formula one which is uh something that I actually wanted to talk about right you talk about racing machines on the wrist again we we already mentioned for example the engineering of their pieces the use of alternative materials even just for example in the case the ergonomics the way it wears I think all those factors also played into the price right because listen a watch has to have a certain pull as well right because if you're investing your dollars into it I think you have to have a feeling that when you put it on risk and you see it you know there you're like okay damn this is you know this is pretty damn good yeah I mean a lot of a lot of Reserve meals clients they are not as uh as I like to call him a horology nuts like you are right they aren't buying the uh movement behind the watch right you know back in the day there used to be a saying uh the million dollar handshake or the Billionaire Boys Club that's what Richard Richard was Associated to and from then on it just kind of caught on they make it damn near impossible for you to walk in and buy what you want I mean they only make nowadays I think roughly two to three thousand they make more now potentially right but at least at least what we've what I've seen online is about two to three thousand maybe closer to five nowadays let's say um but still extremely limited and they've only been around since 2001 right so to say like a brand that's only been around 21 years is now completely sold out and their watches sell at you know almost 2x multiples and sometimes sometimes sometimes even higher right it's just unseen and unfortunate yeah I've I've seen the trend of these watches I've seen the growth rate by far just exponentially more than any other brand yes we've seen Rolex in AP and Paddock and some models just go into just into the stratosphere and just prices that just don't it makes sense but when it comes to restart meal when you have 30 000 of the most in-demand watches for the whole entire Global Market you're talking about 3 000 watches or 3 500 whatever it is for the richest people in the world wealthiest clients in the world that's the whole point of it people want what they can't have right how do you see the Richer Mill Market kind of playing out right do you still see uh it being you know kind of a little bit everywhere as we're seeing it now do you see kind of the really rare stuff still progressing and still you know being rare five years from now what are you seeing for example it's a good question with with Richard mail the whole their whole entire market and the the demand for the product really uh depends on the distribution so Richard meal has three or four different distributions they have the Americas which causes of Canada United States and South America then you have Europe uh Middle East and Africa which is distribution center number two and then you have Asia which is distribution center number three and I believe Japan may be its own separate Distribution Center so it really depends there are guys at the Forefront that will say hey this watch belongs here right it's not a random sequence of events so it all depends on how many watches or or what actual product they put out there on the market now I will say this although it is probably it is my second favorite were banned to protect Felipe I love researching me when I wear it I'm wearing an RM 28 rose gold right now in my personal opinion the past I would say three four years has actually been my least favorite uh Richard meal releases onto the market if that makes sense so let's talk about the 6501s that is now it's not their gold standard chronograph like the 11 the rm11 was and then that followed with the 1103 right at 6501 although it looks very similar to both of them it's a split second right so that's not marketing as their uh gold standard chronograph the 7201 is right that's their first in-house I believe their first in-house chronograph it is completely different look to the 1103 and 11. okay going back to the 6501s the problem with that watch is and if you're seeing those watches on the market now for the first time in a long time they're actually trading for around MSRP right which is unseen of in the last five hours and I'll explain to you besides the ladies and I'll explain to why for whatever reason they decided to over Supply them onto the market so do you think it's too much Supply or people just aren't it's always it's always it's always a supply for me when the 1103 started to drop they were damn near impossible to get they made them in a lot of different variations they made them in rose gold rose gold titanium they made them in titanium they made special edition so such as 1103 McLaren which you know which was a huge marketing success you know the idea behind that was you're able to buy a 1103 McLaren at MSRP which at the time I believe was about 180 000 if you got allocation of the McLaren setup I don't want to call stunt but but marketing genius and it really worked plus the watch was was spectacular nobody's ever seen the tiger stripe before it was yeah black and orange yeah and it's and it just it really did well then you had the 1103 John jeanto which was blue they never seen an ntpt material with a blue color in it that took off like crazy so anytime pieces like that take off their counterparts take off as well that being the 1103 black all ncpt the 1103 red qtp and and their other pieces for whatever reason their current chronograph line and current Split Second Line just did not follow the same Trend right but I think you can also say this uh kind of for rooster Mill in general right which is when they do off the beans past stuff like the the price on the secondary Market is nowhere near what their alternative materials fetch which is crazy right because they're more or precious or semi-precious Metals versus something like a carbon right which is you know it's just pressed together sheets of carbon absolutely which is not as you know spectacular and yet it's far more questions it's almost like the less precious metal you have in the watch the more expensive which is crazy right that's part of the whole Allure of Richard meal you know especially I remember when they released the 6702 so the 6702s is the uh I guess success within 6701 but they made it in ncpt materials when that watch first hit the market it was the running joke of the entire industry from our wholesale side of things amongst us dealers to the retail side of things fast forward years later it is the best holding value Richard meal currently today from from its absolute Peak to the market on them today is as stable as it could possibly go because I've seen 1103s I've seen 6501s I've seen 7201s which is like the most popular pieces really really tank in price over the past year I would say ever since crypto started dropping they took a nasty nasty fold the 6702s I'm not saying they went up in value but they have been pretty stable because people people associate that with minimalistic extremely sporty Fu money and that's what it is you're essentially wearing a very thin piece of plastic on a hair scrunchie and you know it's three hundred thousand dollars so that's the other part of Richard meal I when I explain it to a new customer when they come in why is this watch so expensive I Can't Tell You Why the watches because there's obviously enough demand for the product I like to compare it to Modern Art so you could you can understand a Sistine Chapel while Michelangelo correct me yeah okay my clientele painted that you look at that and you're in awe right it's the same thing as looking at a Patek it's a it's a tested product over many many generations right so you understand the value of Patek a reshard meal to me is a Jackson Pollock it's a it's a Matisse yeah it's something that is if if you don't understand that it's very hard to explain when I look at modern art or Roscoe I say hey there's two colors on a wall and they look red and blue to me why is this worth 100 million dollars I don't understand that but there but it alures me it's like captured the attention of watch collectors and the market in a way that nobody RM as just for whatever reason has been able to do that in comparison to other brands so that's that's what RM is to me it's when you look at the piece you know they don't everything that they engineer is catered to sport it's catered to the racing machine on the wrist which is their original marketing campaign and they've they've stuck to their branding they've stuck to their to their culture and then here we are today so I think it's pretty clear from our conversation the main factor that has contributed mostly to Richard Mills success is the incredible marketing right I think we've also established you know that they're Pioneers in the use of alternative materials they've done things in terms of complications the mechanics of things they're extremely well built watches made by Renault poppy we don't have to get into it but the mechanics are there the substance is there and the marketing right it's been featured you know on the risk of all celebrities actors uh all this stuff has definitely contributed to it right now again we've talked about a little bit about the future of Richard Mill what would you like to see from them in the future that will continue to contribute to their success us first and foremost what I would like to see is uh what they do with their partnership with Ferrari so prior to Ferrari they had a partnership with McLaren and prior to McLaren they had a partnership with lotus every watch they made for those car brands was an absolute success my favorite watch for the longest time was the arm 11 Lotus so it was an all black watch it had gold accents it had red Accents in it okay okay so they made it with ntpt they made it with uh with the gold sides as well that was the arm 11. they had a uh arm 5001 which I actually sold a few times over and actually very funny story with that watch uh the first time I sold the watch Klein bought it I shipped it over to Asia to our office over there and then when he went to pick it up I get a WhatsApp early in the morning saying hey man there's something wrong with the watch I'm like no there can't be you know we checked the chronograph we checked all the functionality tourbillon was working perfectly cases Immaculate he goes no you don't understand the g sensor is not working I'm like the what the g sensor well I'm like how do you check a g sensor like I wasn't driving an F1 car and he shows me on video he takes the watch and he goes like this to it right and it and the needle would have moved so essentially what happens is that watch measures G-Force so that was probably my favorite RM tourbillon that they ever created with Ferrari we have yet to see anything spectacular they made the plate I like to call it the plate the Ferrari plate the thinnest watch which is one of the I'm sorry one of the ugliest which to me was a massive disappointment because I know based on their their past what they did with the car brands and then you take and then you put it in the hands of Ferrari I was thinking of something absolutely spectacular right maybe they're 70 to a one make it a Ferrari Edition in ntpt with some red or something like that or they're 6501 Split Second make a Ferrari Edition yeah it will absolutely express it which is crazy right because Ferrari has always been the kiss of death yeah and it just feels like this is headed to there too because it's like oh this is not Richard Mill at all I was uh pleasantly disappointed with uh with the release of that watch I have yet to see one on the market there is absolutely zero demand from on my side of things so I am excited to see what they do with Ferrari I would like to see them discontinue a few of their watches that they've had on their catalog for quite some time from the likes of the rm30 or the likes of the rm55 they've had them for enough time where I think they can kind of slowly phase them out and maybe make something else because I see a lot of new things that they're making and it's really catering towards a certain Market a certain clientele like the Smileys and a lot of colors a lot of variations which works for them they sell it to those markets and they bring crazy premiums your American Wall Street Banker guy or executive or it doesn't Like Richard Mills we're going back to the idea of racing machines on the wrist that is not a racing machine on the wrist no that is uh I don't want to call it a cash grab but it it's to them to them it's something that attracts a certain crowd and uh it just makes it again it goes back it goes back to hey look at what we can do we can release this crazy watch and it's going to sell for X over retail crazy Premium Retail we can do it again and again and that keeps people engaged their ability to engage Their audience is is better than any brand I know if you look at Rolex if you look at Paddock and you look at AP what do they do costly with their most popular models not really a whole heck of a lot right they recycle old models but they're very good at keeping that fine balance between not producing something for too long and like under producing something at the same time right where you keep customers like really frustrated I think Richard Miller's gonna find that balance but they definitely need to find I think that's a great point so guys that's our thoughts any closing remarks any thoughts on what you think the future of Richard Mill is I think I I really do think they have a bright future um I think that they have put their stamp on the watch industry that they are at the Forefront of the modern art side of things right I'm right there with you I think I'm going to go back to something that you said earlier which was the idea of being a racing machine on the wrist right what made Richmond so great at least initially in my opinion was that Innovation I think they strayed away from that Innovation be it in their complication the use of alternative materials all that stuff they've kind of become a little bit more conservative which I don't like because Richard Miller is not a conservative brander isn't meant to be conservative so I'd love to see them really go again and push the boundaries with respect to what they're doing away from you know I guess the Smileys and the the stuff that they're doing now which is colorful and bright but not necessarily I would say what they are known for originally but guys let us know down in the comments what you think I'd really appreciate Adrian solving me thank you for having me absolutely it's always fun talking about RM the best RM conversations actually don't happen amongst RM enthusiasts yeah it happens amongst people that don't like it the polarizing nature of the brand makes it so popular of the bread absolutely guys be sure to like comment subscribe again let us know down in the comments what you think we'd love to hear from you and guys we'll see you in the next one take care [Music]

Channel: Luxury Bazaar

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Id: Kwzyx-hgV10

Length: 16min 13sec (973 seconds)

Published: Mon Nov 21 2022