Luxury watches as an alternative investment – A qualitative study on how watch specialists see the luxury watch market in Finland
Kylämarkula, Martin (2023)
Kylämarkula, Martin
2023
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Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi-fe2023060652593
https://urn.fi/URN:NBN:fi-fe2023060652593
Tiivistelmä
The demand for luxury watches is growing at a fast phase and luxury watches are not only attracting collectors but also investors. Nevertheless, the knowledge about luxury watches as investments, luxury investment watch markets and the investors investing in luxury watches is still very limited especially among investors. While there are studies about alternative investments, there are only a few prior studies about luxury watches as investments, luxury watch investors and the luxury investment watch markets. This thesis aims to fulfill the gap in knowledge in watches as alternative investments and contribute by investigating the luxury watch market in Finland using watch specialists as informants. More specifically the research questions that my study seeks to answer to are: 1. Why become an investor in luxury watches? 2. What is the Finnish watch market like? 3.What are the investors like who invest in luxury watches?
The research strategy was a qualitative study conducted through semi structured interviews with the main market operators in Finland to get as insightful data as possible. The data was analyzed using thematic analysis. The study is relevant for actors who work within the luxury watch market as it aims to present an overview of the luxury watch investment markets, and the investors investing in luxury watches.
The main reasons to invest in a luxury watch were according to the respondents that luxury watches can be used to diversify the investment portfolio, and appreciation for fine watch-making. The Finnish luxury watch market was described by the participant as a fast evolving, small and local market where the transactions take place in many forms and in many channels. The Finnish luxury watch market was also described as a market with very limited investment opportunities. The investors that invest in luxury watches share one trait which is passion. Passion was also deemed necessary by the participants; without passion it is very hard to collect the needed information when purchasing a luxury watch. The investors in luxury watches can be divided into two categories experienced investors, who consist of highly educated and wealthy individuals, and of developing niche investors consisting of more diverse profiles including opportunists. The scope included only four watch experts due to the small amount of watch experts that act on the Finnish luxury watch market, which may limit the results.
The research strategy was a qualitative study conducted through semi structured interviews with the main market operators in Finland to get as insightful data as possible. The data was analyzed using thematic analysis. The study is relevant for actors who work within the luxury watch market as it aims to present an overview of the luxury watch investment markets, and the investors investing in luxury watches.
The main reasons to invest in a luxury watch were according to the respondents that luxury watches can be used to diversify the investment portfolio, and appreciation for fine watch-making. The Finnish luxury watch market was described by the participant as a fast evolving, small and local market where the transactions take place in many forms and in many channels. The Finnish luxury watch market was also described as a market with very limited investment opportunities. The investors that invest in luxury watches share one trait which is passion. Passion was also deemed necessary by the participants; without passion it is very hard to collect the needed information when purchasing a luxury watch. The investors in luxury watches can be divided into two categories experienced investors, who consist of highly educated and wealthy individuals, and of developing niche investors consisting of more diverse profiles including opportunists. The scope included only four watch experts due to the small amount of watch experts that act on the Finnish luxury watch market, which may limit the results.