Is Seiko still the best value proposition?
Daniel PintoAs you well know, at LOFT we are die-hard fans of the Japanese giant. Our entire collecting journey has been accompanied by great SEIKO diving watches, and besides their iconic design, what they all had in common was that unique and unparalleled ability to deliver a monster of a watch at a truly affordable price. But seriously affordable—not like when we say a $5,000 USD Speedmaster is affordable, but rather we're talking about true legends for less, sometimes much less, than $500 USD.
Seiko's volume and technical expertise allow it to manufacture 100% in-house mechanical watches at a very low cost, thanks to its economies of scale. It even has the luxury of selling its movements to other brands, with its automatic and Mecaquartz calibers being some of the most widely used in the microbrand universe. But it has been precisely these microbrands that have provided Seiko with strong competition in recent years in the battle to deliver the best quality/price ratio. Their direct-to-consumer business model allows them to avoid the costs of the traditional model and compete with Seiko's entry-level models.
On the other hand, the Japanese brand has been embarking for several years on a campaign to increase its visibility, the quality of its distribution network, and consequently, its prices. New models increasingly incorporate more technology and new calibers, as well as materials such as porcelain and ceramic, but their new entry prices are no longer $300 USD, but instead start at $500 USD, with a mid-range of $1,200 USD and up to $5,000 USD for the most exclusive references in the Prospex family.
No one doubts that the quality is still spectacular, but paying over $1,000 for a Seiko is something many still can't fathom, a rather abrupt shift in the brand's value proposition in pursuit of elevating its positioning. We see Seiko everywhere: sporting events, high-profile ambassadors, special editions in collaboration with streetwear brands, and massive marketing campaigns in major world capitals. Even its network of in-house boutiques has grown exponentially, removing from its distribution network retailers that don't meet the new standard of accessible luxury that Seiko seeks to position itself to defend this new pricing structure.
All of this comes at a cost, but it also comes at a risk. In these price ranges, they are directly competing with some of the most traditional Swiss brands, such as Hamilton, Certina, Longines, and even Omega, which have been competing in this market segment for centuries and bring a very powerful offering in terms of quality and, above all, tradition and status. Even within the Seiko catalog itself, we can find sports watches like the Seiko 5 Sports ranging from $250 to an LX Line at $5,000 USD, which confuses consumers and can diminish the perception of value for those considering investing in one of the higher-end models.
https://youtu.be/bb0c8MkpGV0On the other side of the spectrum, where they once reigned supreme, have stepped in brands like Baltic and Lorier, offering nostalgic vintage design for under $500, but also superior quality and specs to comparable Seikos. While we love the look and feel of the 5 Sports, they objectively fall short of what many of the microbrands are offering for a similar price, and the retirement of the legendary SKX007 has only alienated longtime fans who started collecting thanks to that model and turned it into an icon and a pioneer in the modding industry.
So how does this new Seiko leave us?
On the one hand, we're amazed by the brand's ability to release a more spectacular watch each month than the last. Dozens of models inspired by its greatest hits have flooded the market, and at LOFT we've tried and purchased several of them, with great satisfaction, despite several issues with quality control. Simply put, nothing gives us butterflies more than opening that little Seiko box and rediscovering our love for the brand and its ability to make us feel like life's adventurers. Furthermore, this strategy of multiple releases has allowed us to reach a much broader audience who are discovering this hobby for the first time, thanks to Seiko's product and marketing efforts.
On the other hand, we can't help but feel nostalgic and a little sad because the Seiko we knew, the one that gave us so much in the 90s and 00s, no longer exists and will never exist again. That charm of being a "hidden gem" from the Far East, coupled with its indestructibility, design, and credibility, transformed it into the most versatile brand of all. There's one in every collection in the world. Its prices were truly democratic, giving us the freedom to use and abuse them without remorse. Today, that's changed. The new Seiko is beginning to resemble its Swiss counterparts, and for those of us who fell in love precisely because it was different, it's hard to look at it the same way we did before.
Everything changes, and everyone has a different opinion about this new era. But what will never change is that no brand has left such a unique mark on this small world as our beloved Japanese giant, from Ginza to the world, ever more rapidly.
What are your Seiko stories? Tell us about your favorite models and discover the incredible pieces we have in our store » Seiko at LOFT .
