Why Citizen Watches are Not Considered Luxury Despite Producing High-Quality Timepieces for Decades

Producers of premium goods for an extended period do not automatically be classified as luxury brands. The case of Citizen, a renowned watch manufacturer, is a prime example of this principle. While Citizen has produced high-quality watches for many years, the brand is not often associated with luxury watches. This article explores the reasons behind this misperception and provides insights into the role of marketing and brand positioning in the luxury watch industry.

Luxury Brand Perception vs. High-Quality Products

High-end products are not synonymous with luxury, as perceived by the market. For instance, Citizen has their premium line called "THE Citizen," comparable to Ferrari and La Ferrari in terms of luxury. However, the Watches from THE Citizen are often overlooked, even among watch collectors. The reason for this oversight is primarily due to a broader perception that only watches from countries like Switzerland can be considered truly luxurious.

The Finishing and Pricing of The Citizen Watches

The THE Citizen line features superior finishes and can cost up to $3,000. This is a significant amount, but still relatively lower compared to other luxury watches. The affordability and higher finishing quality make them a desirable option for collectors and enthusiasts who value quality without the hefty price tag of mainstream luxury brands.

Why Citizen Chooses Not to Be Perceived as a Luxury Brand

Citizen’s decision not to be perceived as a luxury brand stems from its business strategy. The company is one of the largest watch manufacturers globally, with revenues exceeding $3 billion. However, its production has never been focused on the luxury niche. Instead, Citizen prioritizes an excellent price-to-quality ratio, catering to a wide range of customers who value affordability and reliability. This market positioning has allowed Citizen to maintain its reputation as a reliable and affordable watchmaker while avoiding the higher costs and competitive landscape of the luxury watch industry.

The Citizen Group and Its Luxury Brands

It is worth noting that Citizen is not the only brand under the Citizen Group. The group also owns other watch brands such as Bulova, Frederic Constant, Alpina, Campanola, and movement makers Miyota and La Joux Perret. These brands are marketed as luxury watches, and one can find luxury timepieces from the Citizen Group at premium prices. For instance, the Arnold Son Globetrotter Day, an entry-level luxury timepiece, is priced at $18,500. This demonstrates that luxury is a concept embraced by the Citizen Group beyond just the Citizen brand itself.

Marketing and Brand Positioning

Marketing and brand positioning play a crucial role in defining a brand’s perception in the market. Citizen has chosen to market itself as an affordable, reliable, and high-quality watchmaker. This strategy has helped maintain its competitive edge and allowed the company to thrive in a market that values affordability and quality.

Rotation in a Collector’s Watch Collection

Amidst luxury watch snobbery, some enthusiasts might consider adding some of the THE Citizen watches to their collection. These watches, despite not being considered luxury brands, offer a unique blend of quality and affordability. Collectors can choose THE Citizen watches as part of a rotation in their collection, ensuring a balance of luxury and accessibility.

Conclusion

Despite producing high-quality watches for decades, Citizen is not perceived as a luxury brand. This is a strategic choice that focuses on maintaining affordability and quality. However, within the Citizen Group, there are luxury brands that do cater to the market for high-end watches. Understanding the role of marketing and brand positioning is key to understanding why Citizen watches are not typically considered luxury items.