I recently was speaking with an industry insider (not from VC or Richemont) about the crazy prices for modern watches which semed totally de-linked from their intrinsic value and the reply was eye opening.
"10 years ago every type of watch had more or less a set price: a gold chronograph was $XX, with an inhouse movement it was $xx, a tourbillon was $xx, a time only was $xx etc etc...
Came along Frank Muller who sold steel time only watches with perdestrian movements for the price of a gold chronograph with inhouse movement and his watches sold like hot cakes. The watch industry as a whole looked at this and said, if he can do it and get away with it then so can we. From then on it was a free for all"
What surprises me most today is that the traditional high end brands such as VC and PP seem a bank for the buck compared to many of the new comers or the mid range brands comming out with bells and whistles watches!