"Because at Patek he'd encounter the most extreme brand age phenomenon: artificial scarcity. You can't just buy a Nautilus. You have to spend years proving your loyalty first by buying your way through multiple tiers of other models, and then spend years on a waiting list."
Strange game, the only winning move is not to play.
I've heard other brands do this (Ferrari?) and, of course, there are lines outside "luxury" brands like Louis Vuitton. Why bother?
Humans are status-seeking creatures, and status is expressed through signaling. If you're rich and so are the people around you, money alone ceases to be a differentiator. Ultra-luxury brands appeal to this by adding hoops that money alone can't clear: time, loyalty, relationships. The signal shifts from "I can afford this" to "I was invited to spend my money here."
Lines outside Louis Vuitton are more down-market, aspirational luxury - an ultra-wealthy person wouldn't be caught dead queuing on a sidewalk. Patek and Ferrari operate at the level above, where the signal isn't wealth but access. (HBS calls Ferrari's version "deprivation marketing.")
Is it a game worth bothering with? Enough people think so to sustain billion-dollar brands.
(Of course, PG writing an essay about being too smart for fancy watches - while knowing a lot about them - is its own signaling game, just aimed at a different audience)
While the ultra rich do buy from luxury brands, they're often spending the most on unique items, such as ordering a custom yacht.
Having the most expensive item in some category, or close to it, often gets you news coverage, which is something a normal purchase can't really offer.
Status is a tool for the working wealthy, but ultra-luxury brands are only appealing to a subset of wealthy people.
There’s a great number of people with 100+M and even far beyond that who enjoy nobody knowing just what kind of wealth they have. This doesn’t mean looking poor, but there’s plenty of value in anonymity.
The price isn’t keeping anyone at that level of wealth from buying a Nautilus or a Lange 1 or a panda Daytona. But they can still flex with ultralimited pieces like Zuck’s Greubel Forsey.
“There are three of these things made in a year, and I’ve got the juice to get one of them” is. Zuck doesn’t care about a million dollar price tag, any more than I would care about a couple bucks.
Actually in many cases it is for social KPI storytelling. I know some wealthy people and at gatherings they love to tell 5-10min long stories of exclusive processes that they followed to gain something exclusive while dropping names and numbers. The processes are easy to understand for the entire social circle (i.e. not technical or business achievements which they can't easily disclose).
They might pass the time doing those things, but not as a mere passtime or hobby, like if they were sewing or playing CoD. Unlike those, doing them and telling about doing them serves a specific social purpose.
I'm not arguing with you - you have a valid point.
But I don't view hobbies as that separate from status signals within the hobbying group. Oh you play games? What games? Did you beat it? etc etc.
Esoteric knowledge/practices here are status signls (Oh you reached shattered planet without xyz??).
That starts to sound a lot like "Oh you aquired a lambo XYZ without usual steps abc" and that's a really fun convo in the in-group, and a total miss with the out-group.
>But I don't view hobbies as that separate from status signals within the hobbying group.
The difference though is that this is not meant to serve "within the hobbying group".
They serves the status signal purpose when showing them to "laymen" and other rich people in general, not necessarily to other expensive car buyers or luxury watch buyers.
In other words, the, typically quiet, flaunting, is done to people otherwise uninterested about the specific ting, that nonetheless recognize the exclusivity and the knowledge that it's a subtle signal of "elevated taste" and that they belong to the tasteful-rich club.
Look, I dont want to be argumentative, but my (perhaps cynical) view on people who say they don't do status signaling when they "avoid status signaling" is it's just like the fish who goes "what's water"? It's worth thinking about whether you're doing it by accident.
This could be explained away by them working for the same place and assuming to contact them you call the same switchboard and ask for the person, but even back in the 90s it would have been strange for wall street "Vice Presidents" (even if it was somewhat of a ceremonial title) to not have their own unique business number.
Also, Paul Allen giving his card to someone else with the same contact number for the purposes of being in touch to plan to play squash doesn't make much sense unless you get meta and assume Paul Allen was aware this had no practical value and just wanted to ego-drop the card.
It's exclusivity and sales schticks. Artificial scarcity, social status, conspicuous consumption. Same things that drive influencers to rent limos, pose on other people's private jets, pretend to buy bottles in clubs, flash fake cash, wear bling.
From a birds-eye view it's less a hedonistic treadmill and more a feeding frenzy.
It's a game you can play, but for the life of me, I cannot comprehend why you'd want to, there are so many other better things in life.
>>> Why bother?
Exactly - go give someone you love a hug, that's worth infinitely more than flexing an expensive watch.
Genuinely. All fashion, all accessories, whatever you put on your body is a signal, even if you don’t intend it to be. Your outfit is a costume, and so is everyone else’s.
I've got three Oceanus watches (Casio's boutique brand). I never wear them, anymore, because of Apple Watch.
I brought a couple of them in Japan. There, the G-Shock brand is very popular. They sell G-Shock watches for ridiculously (to Americans, who are used to cheap G-Shocks) high prices.
Clothes, wristwatches, cars, you name it. It's a very common play on luxury brands, Hermes Birkins is the most famous that comes to my mind and follow a very similar playbook.
Apart from the KYC aspect of the process it's their way of solving the problem of artificial scarcity on the second-hand market as the article explains. They want a second hand market to exist to indicate that this is a luxury item, but too many and the price tanking with excess supply.
It also solves the real problem of labor scarcity. If you have X master watchmakers available to make a halo product you can only get so much output from them. You can increase X, increase production efficiencies (reduce labor input), or limit supply. The first two reduce exclusivity and perceived quality so the third makes sense if you can live without growth or can grow via high pricing strategies.
More and more I realize I am completely obvlious to all of the class signaling happening here. I couldn't imagine spending that much on anything, let alone a watch. And I certainly wouldn't think someone wearing that did, either.
I feel bad for the folks who pick up on stuff like this, that must be a heavy weight to bear constantly comparing yourself to other people.
Ironically a desire for such social signalling requires being poor enough that you believe the item is worth a vast and near unobtainable amount of money making it seem like a very impressive signal to you. That’s what makes these items desirable. As in these signals can be a sign of just how poor you are as opposed to how wealthy.
A classic case is when you observe teenager targeted status signalling trends. This can be as low value as an expensive shirt, ie shirts branded ‘supreme’ costing $300 which isn’t worth signalling to anyone who pays rent or a mortgage. But to a teenager? Wow man $300! such status!!! On the flip side if we see someone above teenager age wearing such teenager targeted status symbols we reasonably subconsciously assume they live with their parents and have very little income.
This continues up the wealth chain forever. Status symbols are invariably a way to see just how little people actually have because the person wearing the status symbol clearly believes the value of what they are flaunting is impressive.
Status symbols aren’t a signal of how much money you have so much as signal of what you believe to be an incredible amount of wealth to flaunt.
Well framed. I will add though that it's not entirely indicative of how much one thinks is a lot; it can also be, as was explained to me, that for ultra wealthy people, the price, at any magnitude, becomes a rounding error.
half a million for a car sounds absurd to me, but it's 0.5% of $100M. Compare that to $50k car on a ~$200k median net-worth US household.
> I am completely oblivious to all of the class signaling happening here.
If you're comfortably middle class and in a demographic recognized to "deserve" to be middle class, then you can afford to be oblivious to a whole lot of class signaling. You aren't striving to reach a higher station, and you aren't likely to get demoted out of your current one, so you can mostly ignore it.
People that are lower-class and trying to move up, or in demographic categories that are often shunned access to higher social classes don't have that luxury and are incentivized to be savvy to this kind of stuff.
This is one of the kinds of things that people talk about when they talk about "privilege". It's not that you should feel bad because you don't have to worry about this stuff. It's just an acknowledgement that some people have the privilege of not having to worry about this stuff because they were born into a level of class security that others lack.
>I feel bad for the folks who pick up on stuff like this, that must be a heavy weight to bear constantly comparing yourself to other people.
You can have that heavy weight while living on the suburbs or even the ghetto too. The objects are prices mostly change with the wealth level, not the game.
It being an "acquired taste" is part of the appeal. A lot of high-end stuff is ass-ugly on purpose. If everyone liked it because it simply looked nice, you couldn't tell who's "in the club" of other rich people. Brands will attach elaborate stories and histories to objects to make people feel cultured that they have invested time in acquiring the knowledge, but really it comes down to in-group object recognition.
My least favorite of that eras Gerald Genta designs. The original Royal Oak is comparatively far more attractive. Both are outdone by the 222 (different designer though), but it's all subjective.
Ads for Patek Philippe on the back of The Economist get more and more annoying over time. (e.g. the president writes "How Happy I am to be a Nepo Baby")
This is so silly. Do you really not have any hobbies where you spend inordinate time or money on things you could objectively accomplish quicker and cheaper, but having less fun, in other ways? Like, I ski. It’s a silly way to get up and down a hill in the 21st century.
I’m not a watch guy. But mechanical watches are beautiful. There are idiots who buy them. But that doesn’t mean everyone who does is an idiot.
Collecting watches isn't a hobby, it's pure consumerism. Sure many hobbies have (recently?) gotten way more people spending top dollars for no reason but with watch collecting there's nothing else. You're not tweaking the dials, you don't know how to make the watch, you just watch it and wear it while a technologically superior version is 500 times cheaper. There's also no natural shortage of them, they can make a trillion of these watches.
At least with cars or audio equipment there's some marginal benefits once you get to crazy numbers, not the case with watches.
What is wrong with watch consumerism? It isn't like it's ruining the planet and hurting anyone. Like you said, there is no shortage and nobody will die without them.
>That's not why brand age watches look strange. Brand age watches look strange because they have no practical function. Their function is to express brand, and while that is certainly a constraint, it's not the clean kind of constraint that generates good things. The constraints imposed by brand ultimately depend on some of the worst features of human psychology. So when you have a world defined only by brand, it's going to be a weird, bad world.
This is a wild thing to say. Brand age watches don't look strange. They look beautiful. Incredible thought and care and intention is put into their design. The people who buy them love them. It's so funny to me to get this far into one of PGs blogs and sort of realise "Oh right, you don't actually understand beauty". It's very hard to read this as much more than a slightly autistic man not understanding that it's ok for people to like beautiful things. It is not worth it to me to spend £100k on a watch, but I don't deny it is to other people, I'm not going to pretend the watch is undesirable.
But it does make me wonder whether Paul things that YC is successful today because it has a better design than other startup programmes, or is it successful today because of it's brand?
I disagree. It's worth asking why some people find brand watches beautiful? Where did they get their sense of aesthetic? Were they born with a congenital preference for RM 16-01 Citron?
Culture shapes our taste. Companies go on multi-decade billion-dollar campaigns to shape our culture. We like certain things because famous actors or athletes endorse them; because hip hop artists rap about them; because influencers talk about them; because Hollywood portrays them a certain way. This extends to all modern aesthetic preferences from architecture to watches to cars to furniture to dating.
I think the argument pg is making is that brand-obsessed cultures are not maximally truth/beauty-seeking and gets really weird. e.g. Japanese Ohaguro, Chinese foot binding, various cranial deformation practices from the Mayans to the Huns, high-heels, ugly (to outside observers) watches.
It's a really thought-provoking essay. But it's too heterodox and "autistic" to share with most of my friends. Socially speaking, it's best to outwardly embrace the current zeitgeist.
Citron is obviously a weird watch but you can always find weird expensive examples of anything. Most expensive watches look normal and they look really beautiful thanks to the attention that goes into building them.
They may be beautiful, but the fact remains if you could produce and sell Patek Philippe Nautilus for $200 no one would be interested in it. The same is not true for most other beautiful objects
Well firstly, they don't charge $200 for them because they can't produce them for $200. But the point I'm making is he seems to be trying to say they aren't beautiful. He says he's describing this "dark" world or "strange" watches. I do actually think he probably thinks the watches look strange. I don't think he thinks they're beautiful, maybe he'll find a brand to fall in love with one day. I doubt it because he seems to have too much of himself invested in this. But the people buying them don't think they're strange, they think they're beautiful. I don't go out telling everyone that they shouldn't buy a Ferrari because my Honda Civic can do the same job.
I think you are missing his point - the items are desireable because of the brand. The stories, the movie stars, the songs and so on.
They don’t possess a universal, objectively valuable beauty that motivates the desire. If they did, fakes would be equally desireable and they are not.
You're confusing the price of something with how much it costs to make it. Prices are just a made up number. Hopefully, the amount someone will pay you for the watch you made is more than it costs you to make it, and you have a sustainable business, but the funny thing about capitalism is that is not at all guaranteed. If the company wants to juice sales, they'll have a limited time discount. Or how about when the company is bankrupt and out of business? Then theres a fire sale and the price of something is pennies on the dollar. So they could sell the watches for $200, or they could give them away for free, or they can charge $100k, or they could barter for them. It's all a matter of business.
I agree. Following his x account and posts, intellectuality in PG’s content has gone massively downhill (starting from slightly earlier than his recent rants about ‘wokeness’).
Once one of my favourite writers is really hard to read now.
It feels to me like he is so overconfident now that he thinks he gets it in any topic, even on the ones he has very little understanding of.
You are pointing to an outlier that is not expensive due to its beauty but historical significance. Typical expensive watches look normal and beautiful:
Guy who still wears high-heels because they originated in men using them in stirrups. "No, babe, this is normal. It's actually good men's fashion. Where did you think your heels originated?"
I agree with several things in TFA but you're right that some people just love these because they look beautiful.
TFA says this:
> If mechanical watches had only been accurate to a minute a day they couldn't have made the leap from keeping time to displaying wealth.
I don't think it's necessarily about displaying wealth: we could discuss humans (not just women but also men) wearing some kind of jewelry since thousands of years, including poor people who don't do it to display wealth but just because they enjoy the look of it. There was an article about monkeys enjoying the looks of crystals the other day I think.
One example would be people who don't dress nicely and who drive a cheap car and overal look like they just don't care about what others do think, and yet wear a dive watch. There are countless dive watches, be it a cheap no-name one, a perfect chinese replica of a Rolex Submariner (some replicas have most parts that can be exchanged with real Rolexes, which created the entire "frankenwatch" thing: where some parts are from the true brand and others have been swapped by chinese parts) or a real Rolex Submariner or Sea-Dweller costing $10 K to $20 K (for the base models).
Also in an age of alienating technology, something has to be said about a 100% mechanical device that's not connected to anything and doesn't require a battery to work, however imprecisely: it's not just about the beauty of the object when you look at it. It's also the beauty in having something that's not spying on you.
Just like there are people who, for a variety of reason, only ever take out their old Ferrari for a spin at night (when there's no trafic).
I take it you could very probably say: "Most people own fancy mechanical watches and high-end sport cars to flaunt wealth". But you can't generalize to 100% of watch owners and Ferrari owners.
I watched the Macbook Neo launch video yesterday and while the product is not very exciting, the video has great production value and it showed this: People want to pay for marketing.
Not that Apple's only appeal is marketing, Mac laptops certainly have pros over the bottom and mid tier Windows laptops. But having seen that video, and knowing that other have seen it, are aware of Apple and its positioning, makes people feel better while using and owning their devices.
People absolutely want that feeling and they're willing to pay for it.
Apple clearly positions themselves as a premium product. There is some luxury element to it to (e.g., my friends will look down on me if I have an android), but it's not really the same as a true luxury product where brand is the main thing you are paying for. If you offered to sell me a macbook for 25% cheapr on condition that I remove the branding, I'd be happy to do so. I'm not a watch person, but I suspect that most Rolex buyers would not pay anything close for an identical watch without the crown logo.
Actually most watch collectors do not wear their most expensive watches, they have daily or travel watches to wear that carry less risk.
Also, watches are status symbols to a really narrow niche. Vast majority of people cannot name a non-Rolex expensive watch and would assume Seiko (and maybe Tissot) are the best watches after Rolex, followed by Swatch (and maybe Timex).
My main point can be put a little more clearly: it is not just that we are willing to pay for the brand experience and the marketing that builds it, but we actively want to pay for it.
Macbook Neo customers want Apple to put out creative product marketing videos, they believe it is part of the offer.
Interesting historical anecdote: the Swiss became the world's best watchmakers because, in Protestant Geneva under the leadership of John Calvin, jewelry was banned as ostentation. But you were allowed to wear a watch - it was important to get to church and work on time - so people starting wearing expensive watches instead of jewelry.
I don't think the Brand Age is as bleak as this essay suggests.
Branding is not inherently unproductive, nor is it guaranteed to produce worse watches. They may be larger and less accurate, but consumers still (evidently) find value in the brand. A Grand Seiko or a Nomos or a Patek is perhaps now even more interesting & identity-productive than a watch was in the 60s.
As technologists I think we're prone to dismissing improvements that aren't engineering-backed. But all life is storytelling, and labeling that work as "button-pushing" is… dismissive, to say the least.
What I got from the essay: "brand is the only way to beat competition when you can't significantly beat them on quality". It's basically the market suffering from success. You can buy a cheap quality watch today.
For some product types there is no better alternative, like ISPs. But I'd argue this is because of monopoly, which is different from brand. Most monopolies (like ISPs) usually have negative brands, and there's no alternative not because one can't create a better brand (that's easy), but because the upfront cost to become profitable is too high.
> Now they cost a lot because brands spend a lot on advertising and use tricks to limit supply, and what the buyer gets in return is an expensive status symbol.
Sounds a hell of a lot like the diamond industry. Also, the top fashion houses, but both industries are taking a drubbing from artificial competition (artificial diamonds, and knockoffs, of various stripes).
I'm a believer in branding. I worked for many years, for a company with a "top-shelf" brand, and saw what it took, to maintain. But it takes a huge amount of discipline and "silly" stuff. Brand damage can come from a million different directions. I have found very few people are willing to do what it takes to maintain a top brand.
For quite a while, there have been "brand-only" products, like Von Dutch, or Life Is Good™. They are the two-dollar hat, with the twenty-dollar logo. Like Izod Lacoste or Members Only, in the last century.
Sometimes, you can't fight it, but other times, trying to correct can only make things worse.
This is where having sober, experienced PR people and CEOs comes into play. There's no "textbook" way to deal with this stuff. It is different, each time, so you need smart leaders (something in short supply, these days).
The company that I worked for, was a camera company. One of their brand-protection strategies, was to have as much control as possible over any images made public from their cameras.
They went waaaaaay out of their way to help photographers get the best results, and it was a bitch to get test images from prerelease kit.
His point of Omega doubling-down on the things that would progressively harder to establish a moat on made me think about what we have been seeing with higher ed. It seems the "smart ones" definitely read the book that making the "education better," in a world where it is mostly free, was a fool's errand, and now the margins that they all compete it stray far, far away from the quality of the schooling. I work in K-12, and see the same things happening here too.
P.S.: It is odd to me to have such a length pg essay been up for such a long time with just a handful of comments. Did something happen? I would've expected a wealth of discussion on a post like this by now.
I think there are a number of reasons for this, but a couple come to mind. First, pg seems distant from YC now (to those not at office hours, I guess), and rarely publishes new essays, so he's rarely discussed or present in the minds of commenters here. Also, pg has the fortune or misfortune to write in a way that feels like some LLM writing, when he's writing well. I haven't gone back to earlier essays to check this notion, but I think he's going out of his way to break up thoughts into less likely sentence fragments, now, which give his recent writing a choppier, less well-written feel, with standalone sentences like
> But you could recognize one from across the room.
The something that happened was ChatGPT. Enough commenters didn't like the idea that everything they write publicly online is fed in as training data for AI that there's been a shift in this site's community. That, and everyone got laid off, either for section 174 or AI reasons, but Twitter employees are no longer collecting that fast paycheck and posting here. I'm sure a data scientist could make a good analysis of if what I'm saying is backed by actual data, but that's my feel based on spending more time on here than is healthy.
The ability to transfer a lot of money in the physical shape of brand watches costing 200k per piece may have added to their appeal. AppleTV’s show Friends and Neighbours upselling their value as Jon Hamm tries to steal them from neighbours may be product placement. But these were all tactics from the 50s and 60s where relatively few media sources meant you could buy your way into the hearts of the masses with an ads campaign.
Today we have a massively accelerated pace of society burning through fads and information - largely due to social media. The artificial scarcity trick is no longer an MBA secret. A brand, especially an AI brand, can burn in and out of favor in days. Transparency in society helps maybe bring out authenticity. Advertising of the past was often “advertising to your weaknesses” and that game is over.
If we can structure the transparency and apply it to politicians and other less transparent institutions that count on “Brand” to the list (especially ones with high margins and large networks) maybe the world will see true competition that benefits everyone more. Lack of transparency (and liqidity, and availability) are what make trust bubbles that distort markets.
> "Brand is what's left when the substantive differences between products disappear. But making the substantive differences between products disappear is what technology naturally tends to do. So what happened to the Swiss watch industry is not merely an interesting outlier. It's very much a story of our times."
Really interesting parallel between decidedly traditional technology and today.
Naomi Klein’s famous book No Logo* does a great job diving into the expansion of branding that happened around the 80s and into the 90s. As someone who’s lived in the post-branding world my whole life, it reads like an anthropological text about my culture from an outsider. It’s fascinating the kinds of things we take for granted.
> Jaeger-LeCoultre's web site says that one of their current collections "takes its inspiration from the classic designs of the golden age of watchmaking." In saying this they're implicitly saying something that present-day watchmakers all know but rarely come so close to saying outright: whatever age we're in now, it's not the golden age.
not sure what tfa is trying to say here, but this is far from being an indictment of the current age. the term "golden age" is (from what I've seen) usually used for the time when an industry or field was taking the leap from niche to mainstream, and in the process defining some of the things that would later come to be considered characteristic. by that token, of course the golden age of watchmaking is not today - the field has already gone mainstream and indeed does retain a lot of the characteristic features that the golden age innovated upon and defined.
GPT doing a great job summarizing and providing a counter:
what's they key thesis here and the argument ?
*Key thesis:*
When technology eliminates meaningful performance differences between products, industries shift from competing on *engineering and function* to competing on *brand and status*. The Swiss watch industry after the quartz crisis is a clear example: mechanical watches stopped being valuable tools and became *luxury symbols whose value comes mainly from branding, scarcity, and signaling wealth*.
*In one sentence:*
The essay argues that when technology makes functional differences between products disappear, industries shift from engineering competition to branding competition, and the modern luxury watch market illustrates how that transformation works.
---
If you want, I can also explain *why this essay is controversial among economists and designers*—there are a few big assumptions in the argument.
And the counter
A few places the argument is debatable (even if it’s persuasive as a narrative):
It treats “brand” and “engineering” as mostly opposed. In practice, luxury buyers often do pay for engineering (finishing, durability, serviceability, movement architecture), and those technical choices can reinforce brand rather than fight it. The tension is real, but not always zero-sum.
It downplays other drivers of the Swiss recovery. The rebound isn’t only “they discovered brand.” Things like Swatch’s role in recapitalizing distribution/production, industry consolidation, improvements in manufacturing, and globalization of luxury demand can explain a lot of the late-1980s revenue surge alongside marketing.
The “artificial scarcity = managed asset bubble” framing is provocative but contestable. Scarcity can be interpreted as: capacity constraints, quality control, long-term brand stewardship, or channel strategy—not necessarily “bubble management.” It may function bubble-like in resale markets, but that doesn’t prove intent or fragility in the way financial bubbles work.
Some claims are asserted more than demonstrated. Examples: Rolex “abandoned research” after ~1960; “only three survived as independents”; “most brands are owned by six holding companies”; “they rebuy hundreds per year.” These might be true in broad strokes, but the essay uses them as load-bearing supports without showing evidence in-text (beyond a couple notes).
The design-history claims are simplified. Watch size and shape trends aren’t only branding; they’re also driven by changing tastes, ergonomics, manufacturing norms, sport/tool styling, and shifting notions of masculinity. “Big = cheap historically” is directionally true in some eras, but not a universal law.
The gender section is especially shaky. “Women never really went for mechanical watches” and the steam-engine analogy read like overgeneralizations—there are strong counterexamples (and cultural variation) that complicate that story.
Brand are brittle. It takes a single CEO associated to some pedophile network or make a nazi salute and it's ready to plummet.
If the business really mainly on the technical merits of the product/service, even blank brand is an option. Many brand as a façade to a single plant is a different tradeoff.
He's omitting the most important bit. Data from the OECD shows highly unequal societies tend to be more status-obsessed, leading to higher spending on "positional goods" (items bought to signal status). These economies often have higher advertising expenditures (as a percentage of GDP) to fuel that competition. Inequality is quite corrosive in many ways, including leading to fascism.
Maybe the phone market is still in its golden age? It's a wonder you can get the best phone in the world for only a little over $1000. And everyone can buy it. Online without a line.
Comparing with luxury watches which cost a magnitude or two more and are beaten in precision by a $10 casio.
I guess the thing to watch out for is technical stagnation and "good enough"? Uh..
I kept thinking that he'd eventually compare it to writing software by hand, and how we're at the end of one golden age. But he never did. So I wonder what the impetus for the essay was.
Apparently this was written to wrap the AI promotion:
"The more subtle lesson is that fields have natural rhythms that are beyond the power of individuals to resist. Fields have golden ages and not so golden ages, and you're much more likely to do good work in a field that's on the way up."
Cigarettes were resisted, leaded fuel was resisted, nuclear energy was resisted. AI is already being resisted and the resistance will grow.
The question in the zeitgeist is whether coding agents will be to software engineers as the quartz revolution was to expert watchmakers.
Commoditized software is here. Will there be a market for high-end, luxury software? Becoming an artificially scarce veblen good is unlikely to work for digital goods the way it has for watches.
Wild timing on this. Been seeing a huge uptick in people "trying to learn opsec" as they fumble around for ways to make money with openclaw and land on "selling fake bags/shoes/watches", seemingly emboldened by those who value these brands trying to use openclaw to secure mispriced items or snipe auctions.
Funny thing is, I'm not sure anyone is actually doing either thing successfully. Every time I've looked into an openclaw success story it's ended up being complete fiction.
Obviously not the main point, but I've been reading watch media online for over a decade now, I've read or heard this "Quartz Crisis" story hundreds of times and never ONCE read about the coincidence with the Bretton Woods agreement. Makes sense though, its basically oral history.
software is becoming like the fashion industry. you go to Prada vs Hermess because you think one does better shoes and the other better bags. But is not because neither could do better shoes or bad it isb ecause your mind positioning is set.
Software. everyone can do it now. but you still buy lets say Crowdstrike for security, because is in your brain for years as security software.
> So the only thing distinguishing one top brand from another was the name printed on the dial
Respectfully disagree.
Since the 60's (and one could argue, even long before that), watches are 1) fashion, and 2) male wealth-signaling fashion. That's it. Nothing more. And for males who subscribe to this wealth-signaling cult, they know from a long way away what watch brand is on that guy's wrist.
Okay, today's brands signal maybe a little differently than just wealth. Casio G-Shock watches aren't substantially different than their non-G-Shock counterparts in any significant way, but they cost way more. The G-Shock brand signals... I dunno, sportsy-ness? Maybe it is closer to a pure fashion brand here.
I think we've been in "The Brand Age" since the advent of advertising. There are plenty of products that have virtually no differentiation besides brand, and there (almost) always has been.
> they know from a long way away what watch brand is on that guy's wrist
No, they didn’t. The makers of movements and makers of cases were separate. From far away you only know the case on the wrist. Not the movement. (I think Rolex was the first mass-market Swiss watch brand to vertically integrate. Patek may have been the first boutique.)
The movement isn't part of the brand. It's not part of the signal. The case/dial/sometimes band are the brand. And if you couldn't tell them apart, they wouldn't be any good at signaling, the entire point of wearing them.
> movement isn't part of the brand. It's not part of the signal. The case/dial/sometimes band are the brand
The movement was the expensive part. Audemars, Vacheron and Patek only made movements. The retailer would then put it in a case. That’s the entire point of PG’s essay.
> if you couldn't tell them apart, they wouldn't be any good at signaling, the entire point of wearing them
Which might lead you to revise your hypothesis around why these watches were bought and made in the “golden age of watches.” Then as now there is such a thing as quiet luxury.
I don't think thats really true, Audemars & Patek deffo made entire watches in the 50s.
Don't get me wrong they also designed movements, but by the time of the quartz crisis, Patek bought in movements from outside.
It doesn't really help that omega and tissolt were merged with Certina, ETA, hamilton when then turned into swatch, which basically dominates the entire swiss watch industry along with rolex and richemont(who own Vacheron)
It’s sort of hard to unravel what’s part of the brand, it’s all imagination anyway.
The watch manufacturer, as part of their reputation, buys “premium” internal components. And then the hardcore watch-heads get to know that this model has that premium movement. Everybody in the club gets to signal to each other by knowing internal details that outsiders don’t notice (or even details that can’t be noticed, I mean, I assume by nowadays non-premium-brand movements are functionally identical to the premium ones).
They were. The Acquired podcast on Rolex really opened my eyes to this whole world. They defined the playbook in the 1930s that Apple repeated in the 80s and especially 2000s.
I entered this cult last year. It’s been super fun to spot and infer from a distance, as you say, these hidden signals that men have chosen to spend $20,000 to $120,000 on.
G-Shock says “I do things that are so dangerous and so off the grid your Rolex or Apple Ultra would shatter and die”. And it’s true, out of my whole collection, that’s the one that will still be within a ms of true time 25 years after the power goes out after the nukes go off.
>The G-Shock brand signals... I dunno, sportsy-ness? Maybe it is closer to a pure fashion brand here.
I own (among other, nicer time pieces) a G-Shock. I bought it when I was in the military and frankly it's a great watch that has withstood some serious abuse. Maybe a cheaper watch would have also survived? I'd happily buy another but mine's still literally and figuratively ticking.
> The best way to answer that might be to imagine what someone from the golden age would notice if we brought him here in a time machine. [...] The first thing he'd notice, if he walked through a fancy shopping district, is that all the prominent watchmakers of the golden age seem to be doing better than ever.
Because he focuses in the story of luxury watches, Graham sees only the brand tricks that work mostly for rich people.
There are brands for non-rich: Linux is a very strong brand but virtually free and non-exclusive at all (think Android phones). Patriotism and country reputation might also be thought as brands. E.g. would Portugal's tourist boom happen without the Portuguese tarts popularity?
I'm still not really clear on what the point PG is driving at.
However swatch group(omega was force merged in the 80s to form the swatch group) has 3x the turnover of Patek.
More over Swatch caters to both high end and the poors + kids. So brand is.. good? so long as you only cater for the rich? I'm not getting that really.
I'm struck by the utilitarian mindset of this essay. What Paul so disparagingly refers to as "brand" can also be referred to as "art". People _want_ art, and will indeed pay good money for it. Said differently, people _value_ art enough to differentiate it from "optimal design", and indeed a subset of people will pay top dollar for a suboptimal but artistic design.
It is possible to view the fact that capitalist markets can turn a desire for art, individuality, and "something special" into a business as a bad thing. I'm not entirely convinced that's particularly interesting, though... it seems just a localized restatement of a generic "capitalism is bad" take.
- This change of what used be a functional object into a brand was done to appeal to one-upmanship (my watch is more expensive than yours) rather than the aesthetic urge which drives appreciation for art. He doesn't blame the watch brands, it may have been the only way they could survive after the triple shock. But..
- If you're an engineer and techie type and are drawn to the complexity and mechanistic elegance of mechanical watches, he's warning you that the problems being worked on in the brand age actually take you away from good functional design which attracted you there in the first place.
In almost every category meaningful differentiation is a myth. It sounds nice to tell yourself you've got it and talk about moats or whatever, but it misses the point.
What people usually mean when they talk about differentiation is distinctiveness [1]. Design isn't a differentiator for these watches it's about being distinctive. At the end of the day when telling the time is commoditized, and expensive watches are just a status symbol it's all you've got.
I asked Claude to psychoanalyze why I got obsessed with them and it said I’m likely striving for something tangible that appeals to my engineer mindset that isn’t now obsolete in the age of AI. It’s my career’s existentialism.
Status games are evergreen, and a lot of conspicuous consumption has fallen out of fashion. They've gotta flaunt their wealth and position somehow, and lambos are just too crypto-bro and gauche.
It's also a sales tactic - a watch can be a schelling point if you're looking to network with someone who's into it.
Watches were understated in the 70s and turned more to gold in the 80s and a super proliferation of diversity in the 90s. 90s also had machismo Schwarzenegger sized cases for steroid men.
2000s brought Hiphop bling culture to them which embraced maximalism with size further increasing and 85 diamonds and rubies being something worthy of showing.
2010s austerity led to a retreat all the way to 1940s style trench and dress watches, cases back to 38mm.
Post Covid, boldness is having a comeback. See the newest Planet Ocean. We are seeing bling and ostentatious gold again on celebrities this year.
Nike is a useful test case (1) here. Brand was the whole competitive moat for them and once athletic gear commoditized, then management spent five years cutting the things that sustain it: athlete relationships, premium positioning, product development. Each cut looked (somewhat) rational on its own but none of them were, taken together.
The question is, in this new software world order, how much do brands matter vs what they've done vs network effects. I could have Claude code shit out a Facebook or Twitter clone, or an Uber clone, and have none of the baggage of Cambridge Analytica, being owned by Elon Musk, or Travis kalanick of Greyball and S. Fowler legacy. An Uber driver-turned-dev could easily stand up a competitor and give way more money to the drivers simply by not having the overhead that Uber has with lawyers and executive salaries in this age of ChatGPT. Drivers will go to where there's riders and money, and riders will go to where there's drivers and cheaper rides. (and no drivers.) If someone needs an app idea to work on, it's the incumbents, without the suck. Facebook without "People just submitted it. I don't know why. They 'trust me'. Dumb fucks."
Because looking at Truth Social and Gab, people do adopt brands as part of their identity; and Uber but for drivers, or Facebook, without the spying, are trivial to make the software side of things on now. The fact that we haven't seen a dozen Uber competitors spring up is a testament to the fact that branding is a helluva moat. It's impossible to put a dollar value on it, but ChatGPT has no moat, except that it's Chat-fucking-GPT. The original chatbot and no matter how good Claude gets, it'll never be the original.
Some of them will. And I suspect the set of markets in which they do will only increase—traditional SWE is probably dying, hard as that is to accept. But the fundamentals of engineering and business are nowhere close to going away. And those are the actually-hard parts of business.
Your taste buds prefer the flavor, not the brand. If they changed their name to "Caramel Diet Fanta" but kept the recipe identical, you'd still enjoy the taste.
The New Coke brand failed because people didn't like the taste, not the other way around.
New Coke is a very interesting counterpoint to the brand focus, but on the other hand, they did at the time make a very big push of it being "New" Coke. Hard to tell what would've happened if they had just swapped out the formula.
I drink Diet Coke, which is basically the same formula that became New Coke with chemical sludge instead of sugar, and it tastes pretty good to my tongue to the point where I drink it over Coke Zero, the one closer to "the real thing".
Every time I drink a Coke (or any other soft drink), the brand's baggage (good and bad) is present. Unless you're doing a blind taste test, it's impossible to avoid that.
> I could have Claude code shit out a Facebook or Twitter clone, or an Uber clone
No, you couldn’t. At best you’d turn out a video game simulating Uber. The idea that all of the business is in its software seems to be one Silicon Valley perennially unlearns.
As long as we agree that code generation is capable of creating a video game simulating Uber, we're on the same page. The fact that there's more to a business than a flashy bit of software is exactly my point! The idea that Silicon Valley is one dude who doesn't get it is as old as the valley itself.
I've found the newer generation of founders understand that. The issue is they don't use HN anymore.
I've noticed a significant tone and demographic shift on the site over the past 2-3 years with more Western Europeans and Midwesterners and fewer Bay Area+NYC users, and fewer decisionmakers or decisionmaking adjacent people using the site.
And the deeply technical types who used HN largely shifted to lobste.rs.
Karrot_Kream (another longtime HN user) identified this shift as well [0]
The Bay Area/NYC and founder adjacent folks I know are mostly on group chats and messaging apps. Fundamentally the signal on this site is too low to be of use in those conversations. It's difficult to discuss decisionmaking in a forum full of random Fortune 100 employee deep in a torrid company hierarchy complaining about what their management hierarchy wants them to do.
There's also a tension between the increasing "community building" happening on HN and the Bay Area/NYC crowd. A lot of them have an extant community largely based on in-person relationships. The more HN builds its own community, the more you alienate this set of people. In other words, Slashdotification is happening more and more to HN where a set of very online tech people who don't really make decisions generate most of the chatter on this site.
The younger generation of founders meets in-person and uses iMessage and Instagram. The older generation meets in-person and uses iMessage, Signal, or WhatsApp.
The reality is, most people are in-person now and conversations that were happening on HN because of the pandemic are now being done offline.
Blind is toxic, but at least the users are cynically realistic.
I can't respond to tzury's comment because it's already flagged and dead but I honestly don't think that's quite fair on this board.
The very same people who would be flagging that comment wouldn't bat an eye at saying they won't read or support anything by folks like DHH, or a hundred other prominent tech figures who have committed some ideological-wrong.
It's just a similarly heavy-handed reaction from the other side of the divide.
I don't find anything wrong or downvotable about people voicing perfectly valid criticisms about pg, his opinions, who he associates with and signal-boosts...unless these standards you all want to apply wrt cancellation are "for thee and not for me".
The very same people who would be flagging that comment wouldn't bat an eye at saying they won't read or support anything by folks like…
First off, you might be right for some small number of cases, but I’d flag any and all rants such as this, regardless of the target. Off-topic, and doesn’t contribute to the conversation.
Second, for those as you describe, when they go off on an off-topic rant about DHH, someone else will conveniently flag it.
There is not a single discussion on this board about DHH that doesn't get overrun with posts about what people think about the guy, regardless of the posts' topic.
You've got enough karma to click [vouch] on the comment if you think it shouldn't be dead. It's a bit of a rant, and while there are good points, they're lost in an emotional diatribe and, I mean, I feel for them, but I can also see why it was marked dead.
I did click vouch, but I also still stick by what I said because I see all sorts of personal, emotional crusades against various tech figures reposted, signal-boosted, amplified, etc. on this board. I'm not saying that you're wrong, I'm just asking people to pause and think about what the comments would look like if this were in response to some other characters...
People like being repetitive on this board. Read Google in title and say “I never use Google because killing Reader”. It’s not like LLM. It is worse. Like hashmap. Deterministic same answer. That’s fine for them. But I have no interest in starting everything with a litany, land acknowledgement, and whatever other modern preface required.
We acknowledge this message board is the rightful unceded home of the startup enthusiast people. We affirm their right to it and recognize their sovereignty.
See, you enjoy me bringing pet subject into discussion with nebulous relation? You want always to see it? Good. I will do so. No downvote it unfair.
"Because at Patek he'd encounter the most extreme brand age phenomenon: artificial scarcity. You can't just buy a Nautilus. You have to spend years proving your loyalty first by buying your way through multiple tiers of other models, and then spend years on a waiting list."
Strange game, the only winning move is not to play.
I've heard other brands do this (Ferrari?) and, of course, there are lines outside "luxury" brands like Louis Vuitton. Why bother?
PS I'll stick to my Casios: https://blog.jgc.org/2025/06/the-discreet-charm-of-infrastru...
Humans are status-seeking creatures, and status is expressed through signaling. If you're rich and so are the people around you, money alone ceases to be a differentiator. Ultra-luxury brands appeal to this by adding hoops that money alone can't clear: time, loyalty, relationships. The signal shifts from "I can afford this" to "I was invited to spend my money here."
Lines outside Louis Vuitton are more down-market, aspirational luxury - an ultra-wealthy person wouldn't be caught dead queuing on a sidewalk. Patek and Ferrari operate at the level above, where the signal isn't wealth but access. (HBS calls Ferrari's version "deprivation marketing.")
Is it a game worth bothering with? Enough people think so to sustain billion-dollar brands.
(Of course, PG writing an essay about being too smart for fancy watches - while knowing a lot about them - is its own signaling game, just aimed at a different audience)
While the ultra rich do buy from luxury brands, they're often spending the most on unique items, such as ordering a custom yacht.
Having the most expensive item in some category, or close to it, often gets you news coverage, which is something a normal purchase can't really offer.
Status is a tool for the working wealthy, but ultra-luxury brands are only appealing to a subset of wealthy people.
There’s a great number of people with 100+M and even far beyond that who enjoy nobody knowing just what kind of wealth they have. This doesn’t mean looking poor, but there’s plenty of value in anonymity.
He’s probably also too rich for fancy watches to actually be a useful signal of wealth amongst his peers.
The price isn’t keeping anyone at that level of wealth from buying a Nautilus or a Lange 1 or a panda Daytona. But they can still flex with ultralimited pieces like Zuck’s Greubel Forsey.
I didn't realize that "fools and their money will soon be parted" was a flex.
“There are three of these things made in a year, and I’ve got the juice to get one of them” is. Zuck doesn’t care about a million dollar price tag, any more than I would care about a couple bucks.
>>> ...PG writing an essay about being too smart for fancy watches
Stealthy, like a submarine.
I know I’m being sold something when someone declares the science of human nature.
Economists have a term for these kinds of things where the demand rises as prices rise: Veblen goods
https://en.wikipedia.org/wiki/Veblen_good
Buying unnecessary expensive stuff is one thing. But it's hard to understand why anybody would want to display that total loyalty to a brand signal.
Harley Davidson, anyone?
"There is only sex. Everything is sex" - Robert California
It taps into a very primordial "I'm better than you" urge some people need.
Actually in many cases it is for social KPI storytelling. I know some wealthy people and at gatherings they love to tell 5-10min long stories of exclusive processes that they followed to gain something exclusive while dropping names and numbers. The processes are easy to understand for the entire social circle (i.e. not technical or business achievements which they can't easily disclose).
Being wealthy solves virtually all problems of consumption, so the invisible hand provides new problems to serve the market need. Beautiful, really.
It's a formalized, sanitized simulacrum of striving! Like sports is for competition
So, hobbies. You're talking about hobbies.
No, he talks about status signalling.
They might pass the time doing those things, but not as a mere passtime or hobby, like if they were sewing or playing CoD. Unlike those, doing them and telling about doing them serves a specific social purpose.
I'm not arguing with you - you have a valid point.
But I don't view hobbies as that separate from status signals within the hobbying group. Oh you play games? What games? Did you beat it? etc etc.
Esoteric knowledge/practices here are status signls (Oh you reached shattered planet without xyz??).
That starts to sound a lot like "Oh you aquired a lambo XYZ without usual steps abc" and that's a really fun convo in the in-group, and a total miss with the out-group.
>But I don't view hobbies as that separate from status signals within the hobbying group.
The difference though is that this is not meant to serve "within the hobbying group".
They serves the status signal purpose when showing them to "laymen" and other rich people in general, not necessarily to other expensive car buyers or luxury watch buyers.
In other words, the, typically quiet, flaunting, is done to people otherwise uninterested about the specific ting, that nonetheless recognize the exclusivity and the knowledge that it's a subtle signal of "elevated taste" and that they belong to the tasteful-rich club.
I have several hobbies, and none of them revolve around artifical scarcity or gatekeeping.
(Well, the way that _some_ people play Magic: The Gathering does - but I wouldn't want to play with anyone who raised a stink about proxies)
Look, I dont want to be argumentative, but my (perhaps cynical) view on people who say they don't do status signaling when they "avoid status signaling" is it's just like the fish who goes "what's water"? It's worth thinking about whether you're doing it by accident.
"Let's see Paul Allen's card"
https://www.youtube.com/watch?v=KlYH-hmxOqc
I wonder if it's intentional that they all say "Aquisitions", with no "c".
As for fonts etc: https://hobancards.com/blogs/thoughts-and-curiosities/americ...
They all have the same phone number too.
This could be explained away by them working for the same place and assuming to contact them you call the same switchboard and ask for the person, but even back in the 90s it would have been strange for wall street "Vice Presidents" (even if it was somewhat of a ceremonial title) to not have their own unique business number.
Also, Paul Allen giving his card to someone else with the same contact number for the purposes of being in touch to plan to play squash doesn't make much sense unless you get meta and assume Paul Allen was aware this had no practical value and just wanted to ego-drop the card.
It's exclusivity and sales schticks. Artificial scarcity, social status, conspicuous consumption. Same things that drive influencers to rent limos, pose on other people's private jets, pretend to buy bottles in clubs, flash fake cash, wear bling.
From a birds-eye view it's less a hedonistic treadmill and more a feeding frenzy.
It's a game you can play, but for the life of me, I cannot comprehend why you'd want to, there are so many other better things in life.
>>> Why bother?
Exactly - go give someone you love a hug, that's worth infinitely more than flexing an expensive watch.
Because the people bothering are precisely those that want to differentiate themselves from those who'd rather stick to their Casios :)
Ah, so these products are useful to me after all!
Genuinely. All fashion, all accessories, whatever you put on your body is a signal, even if you don’t intend it to be. Your outfit is a costume, and so is everyone else’s.
> Casios
I've got three Oceanus watches (Casio's boutique brand). I never wear them, anymore, because of Apple Watch.
I brought a couple of them in Japan. There, the G-Shock brand is very popular. They sell G-Shock watches for ridiculously (to Americans, who are used to cheap G-Shocks) high prices.
Clothes, wristwatches, cars, you name it. It's a very common play on luxury brands, Hermes Birkins is the most famous that comes to my mind and follow a very similar playbook.
Apart from the KYC aspect of the process it's their way of solving the problem of artificial scarcity on the second-hand market as the article explains. They want a second hand market to exist to indicate that this is a luxury item, but too many and the price tanking with excess supply.
It also solves the real problem of labor scarcity. If you have X master watchmakers available to make a halo product you can only get so much output from them. You can increase X, increase production efficiencies (reduce labor input), or limit supply. The first two reduce exclusivity and perceived quality so the third makes sense if you can live without growth or can grow via high pricing strategies.
I just want low maintenance cars. Everything else is a waste.
Anyone with $(80,00-250,000) (which is a lot of you) can buy a Nautilus today[1].
This status-through-martyrdom ritual to get it from retail at MSRP is utterly bizarre.
[1] https://www.chrono24.com/patekphilippe/nautilus--mod106.htm
More and more I realize I am completely obvlious to all of the class signaling happening here. I couldn't imagine spending that much on anything, let alone a watch. And I certainly wouldn't think someone wearing that did, either.
I feel bad for the folks who pick up on stuff like this, that must be a heavy weight to bear constantly comparing yourself to other people.
Ironically a desire for such social signalling requires being poor enough that you believe the item is worth a vast and near unobtainable amount of money making it seem like a very impressive signal to you. That’s what makes these items desirable. As in these signals can be a sign of just how poor you are as opposed to how wealthy.
A classic case is when you observe teenager targeted status signalling trends. This can be as low value as an expensive shirt, ie shirts branded ‘supreme’ costing $300 which isn’t worth signalling to anyone who pays rent or a mortgage. But to a teenager? Wow man $300! such status!!! On the flip side if we see someone above teenager age wearing such teenager targeted status symbols we reasonably subconsciously assume they live with their parents and have very little income.
This continues up the wealth chain forever. Status symbols are invariably a way to see just how little people actually have because the person wearing the status symbol clearly believes the value of what they are flaunting is impressive.
Status symbols aren’t a signal of how much money you have so much as signal of what you believe to be an incredible amount of wealth to flaunt.
Well framed. I will add though that it's not entirely indicative of how much one thinks is a lot; it can also be, as was explained to me, that for ultra wealthy people, the price, at any magnitude, becomes a rounding error.
half a million for a car sounds absurd to me, but it's 0.5% of $100M. Compare that to $50k car on a ~$200k median net-worth US household.
> I am completely oblivious to all of the class signaling happening here.
If you're comfortably middle class and in a demographic recognized to "deserve" to be middle class, then you can afford to be oblivious to a whole lot of class signaling. You aren't striving to reach a higher station, and you aren't likely to get demoted out of your current one, so you can mostly ignore it.
People that are lower-class and trying to move up, or in demographic categories that are often shunned access to higher social classes don't have that luxury and are incentivized to be savvy to this kind of stuff.
This is one of the kinds of things that people talk about when they talk about "privilege". It's not that you should feel bad because you don't have to worry about this stuff. It's just an acknowledgement that some people have the privilege of not having to worry about this stuff because they were born into a level of class security that others lack.
>I feel bad for the folks who pick up on stuff like this, that must be a heavy weight to bear constantly comparing yourself to other people.
You can have that heavy weight while living on the suburbs or even the ghetto too. The objects are prices mostly change with the wealth level, not the game.
I dunno, I'd probably spend that much on a house.
Holy shit that's an ugly watch too, looks like something outta chinatown lmao.
It being an "acquired taste" is part of the appeal. A lot of high-end stuff is ass-ugly on purpose. If everyone liked it because it simply looked nice, you couldn't tell who's "in the club" of other rich people. Brands will attach elaborate stories and histories to objects to make people feel cultured that they have invested time in acquiring the knowledge, but really it comes down to in-group object recognition.
My least favorite of that eras Gerald Genta designs. The original Royal Oak is comparatively far more attractive. Both are outdone by the 222 (different designer though), but it's all subjective.
Ads for Patek Philippe on the back of The Economist get more and more annoying over time. (e.g. the president writes "How Happy I am to be a Nepo Baby")
> Why bother?
ego, of course
Vanity. Ego is something else.
> ego, of course
This is so silly. Do you really not have any hobbies where you spend inordinate time or money on things you could objectively accomplish quicker and cheaper, but having less fun, in other ways? Like, I ski. It’s a silly way to get up and down a hill in the 21st century.
I’m not a watch guy. But mechanical watches are beautiful. There are idiots who buy them. But that doesn’t mean everyone who does is an idiot.
Collecting watches isn't a hobby, it's pure consumerism. Sure many hobbies have (recently?) gotten way more people spending top dollars for no reason but with watch collecting there's nothing else. You're not tweaking the dials, you don't know how to make the watch, you just watch it and wear it while a technologically superior version is 500 times cheaper. There's also no natural shortage of them, they can make a trillion of these watches.
At least with cars or audio equipment there's some marginal benefits once you get to crazy numbers, not the case with watches.
What is wrong with watch consumerism? It isn't like it's ruining the planet and hurting anyone. Like you said, there is no shortage and nobody will die without them.
We can say all the same things about cars, but nobody thinks it’s odd that there’s a status culture about cars worth more than $75,000.
Because that’s only 2-5x the price of a new cheap car.
A watch at $80,000 is what, 10,000x what a new cheap one is?
But good for them! It’s really hard to be angry at them for buying said watch without it being some form of jealousy.
> nobody thinks it’s odd that there’s a status culture about cars worth more than $75,000
Sure. To each their own. I drive a Subaru. I don’t think it’s weird that others like a nice car. (I also think there are douchebags who drive both.)
> Strange game, the only winning move is not to play.
What a tired aphorism. Just like PG's 50 year old insights.
>That's not why brand age watches look strange. Brand age watches look strange because they have no practical function. Their function is to express brand, and while that is certainly a constraint, it's not the clean kind of constraint that generates good things. The constraints imposed by brand ultimately depend on some of the worst features of human psychology. So when you have a world defined only by brand, it's going to be a weird, bad world.
This is a wild thing to say. Brand age watches don't look strange. They look beautiful. Incredible thought and care and intention is put into their design. The people who buy them love them. It's so funny to me to get this far into one of PGs blogs and sort of realise "Oh right, you don't actually understand beauty". It's very hard to read this as much more than a slightly autistic man not understanding that it's ok for people to like beautiful things. It is not worth it to me to spend £100k on a watch, but I don't deny it is to other people, I'm not going to pretend the watch is undesirable.
But it does make me wonder whether Paul things that YC is successful today because it has a better design than other startup programmes, or is it successful today because of it's brand?
I disagree. It's worth asking why some people find brand watches beautiful? Where did they get their sense of aesthetic? Were they born with a congenital preference for RM 16-01 Citron?
Culture shapes our taste. Companies go on multi-decade billion-dollar campaigns to shape our culture. We like certain things because famous actors or athletes endorse them; because hip hop artists rap about them; because influencers talk about them; because Hollywood portrays them a certain way. This extends to all modern aesthetic preferences from architecture to watches to cars to furniture to dating.
I think the argument pg is making is that brand-obsessed cultures are not maximally truth/beauty-seeking and gets really weird. e.g. Japanese Ohaguro, Chinese foot binding, various cranial deformation practices from the Mayans to the Huns, high-heels, ugly (to outside observers) watches.
It's a really thought-provoking essay. But it's too heterodox and "autistic" to share with most of my friends. Socially speaking, it's best to outwardly embrace the current zeitgeist.
Citron is obviously a weird watch but you can always find weird expensive examples of anything. Most expensive watches look normal and they look really beautiful thanks to the attention that goes into building them.
> RM 16-01 Citron
Wow that is certainly a look.
They may be beautiful, but the fact remains if you could produce and sell Patek Philippe Nautilus for $200 no one would be interested in it. The same is not true for most other beautiful objects
Well firstly, they don't charge $200 for them because they can't produce them for $200. But the point I'm making is he seems to be trying to say they aren't beautiful. He says he's describing this "dark" world or "strange" watches. I do actually think he probably thinks the watches look strange. I don't think he thinks they're beautiful, maybe he'll find a brand to fall in love with one day. I doubt it because he seems to have too much of himself invested in this. But the people buying them don't think they're strange, they think they're beautiful. I don't go out telling everyone that they shouldn't buy a Ferrari because my Honda Civic can do the same job.
> But the people buying them don't think they're strange, they think they're beautiful.
Can you reflect on why they think those designs are more beautiful than others?
I think you are missing his point - the items are desireable because of the brand. The stories, the movie stars, the songs and so on.
They don’t possess a universal, objectively valuable beauty that motivates the desire. If they did, fakes would be equally desireable and they are not.
You're confusing the price of something with how much it costs to make it. Prices are just a made up number. Hopefully, the amount someone will pay you for the watch you made is more than it costs you to make it, and you have a sustainable business, but the funny thing about capitalism is that is not at all guaranteed. If the company wants to juice sales, they'll have a limited time discount. Or how about when the company is bankrupt and out of business? Then theres a fire sale and the price of something is pennies on the dollar. So they could sell the watches for $200, or they could give them away for free, or they can charge $100k, or they could barter for them. It's all a matter of business.
I agree. Following his x account and posts, intellectuality in PG’s content has gone massively downhill (starting from slightly earlier than his recent rants about ‘wokeness’).
Once one of my favourite writers is really hard to read now.
It feels to me like he is so overconfident now that he thinks he gets it in any topic, even on the ones he has very little understanding of.
To everyone else who reads this and thinks to themselves "Man, this guy has a refined palate that PG doesn't have. PG can't appreciate beauty", go take a look at the Nautilus yourself https://glennbradford.com/products/patek-philippe-nautilus-0...
It looks like an Aliexpress Timex.
You are pointing to an outlier that is not expensive due to its beauty but historical significance. Typical expensive watches look normal and beautiful:
https://www.iwc.com/gb-en/watches/pilot-watches/iw388106-pil...
https://www.omegawatches.com/en-gb/watch-omega-speedmaster-m...
https://www.rolex.com/watches/submariner/m124060-0001
dang why did I click, they are gorgeous...
Where do you think the Aliexpress Timex designs came from?
Guy who still wears high-heels because they originated in men using them in stirrups. "No, babe, this is normal. It's actually good men's fashion. Where did you think your heels originated?"
I was not expecting it to be this ugly.
> The people who buy them love them.
Yeah, when you spend half a million dollars on a watch, the sunk-cost fallacy has gotta hit hard.
I agree with several things in TFA but you're right that some people just love these because they look beautiful.
TFA says this:
> If mechanical watches had only been accurate to a minute a day they couldn't have made the leap from keeping time to displaying wealth.
I don't think it's necessarily about displaying wealth: we could discuss humans (not just women but also men) wearing some kind of jewelry since thousands of years, including poor people who don't do it to display wealth but just because they enjoy the look of it. There was an article about monkeys enjoying the looks of crystals the other day I think.
One example would be people who don't dress nicely and who drive a cheap car and overal look like they just don't care about what others do think, and yet wear a dive watch. There are countless dive watches, be it a cheap no-name one, a perfect chinese replica of a Rolex Submariner (some replicas have most parts that can be exchanged with real Rolexes, which created the entire "frankenwatch" thing: where some parts are from the true brand and others have been swapped by chinese parts) or a real Rolex Submariner or Sea-Dweller costing $10 K to $20 K (for the base models).
Also in an age of alienating technology, something has to be said about a 100% mechanical device that's not connected to anything and doesn't require a battery to work, however imprecisely: it's not just about the beauty of the object when you look at it. It's also the beauty in having something that's not spying on you.
Just like there are people who, for a variety of reason, only ever take out their old Ferrari for a spin at night (when there's no trafic).
I take it you could very probably say: "Most people own fancy mechanical watches and high-end sport cars to flaunt wealth". But you can't generalize to 100% of watch owners and Ferrari owners.
Calvin: I wish my shirt had a logo or a product on it.
Hobbes: …
Calvin: A good shirt turns the wearer into a walking corporate billboard!
Hobbes: …
Calvin: It says to the world, “My identity is so wrapped up in what I buy that I paid the company to advertise its products!”
Hobbes: You’d admit that?
Calvin: Oh, sure. Endorsing products is the American way to express individuality.
https://i.imgur.com/dY2hkOJ.gif
I watched the Macbook Neo launch video yesterday and while the product is not very exciting, the video has great production value and it showed this: People want to pay for marketing.
Not that Apple's only appeal is marketing, Mac laptops certainly have pros over the bottom and mid tier Windows laptops. But having seen that video, and knowing that other have seen it, are aware of Apple and its positioning, makes people feel better while using and owning their devices.
People absolutely want that feeling and they're willing to pay for it.
Apple clearly positions themselves as a premium product. There is some luxury element to it to (e.g., my friends will look down on me if I have an android), but it's not really the same as a true luxury product where brand is the main thing you are paying for. If you offered to sell me a macbook for 25% cheapr on condition that I remove the branding, I'd be happy to do so. I'm not a watch person, but I suspect that most Rolex buyers would not pay anything close for an identical watch without the crown logo.
Actually most watch collectors do not wear their most expensive watches, they have daily or travel watches to wear that carry less risk.
Also, watches are status symbols to a really narrow niche. Vast majority of people cannot name a non-Rolex expensive watch and would assume Seiko (and maybe Tissot) are the best watches after Rolex, followed by Swatch (and maybe Timex).
My main point can be put a little more clearly: it is not just that we are willing to pay for the brand experience and the marketing that builds it, but we actively want to pay for it.
Macbook Neo customers want Apple to put out creative product marketing videos, they believe it is part of the offer.
https://www.youtube.com/watch?v=u3SIKAmPXY4
Interesting historical anecdote: the Swiss became the world's best watchmakers because, in Protestant Geneva under the leadership of John Calvin, jewelry was banned as ostentation. But you were allowed to wear a watch - it was important to get to church and work on time - so people starting wearing expensive watches instead of jewelry.
I don't think the Brand Age is as bleak as this essay suggests.
Branding is not inherently unproductive, nor is it guaranteed to produce worse watches. They may be larger and less accurate, but consumers still (evidently) find value in the brand. A Grand Seiko or a Nomos or a Patek is perhaps now even more interesting & identity-productive than a watch was in the 60s.
As technologists I think we're prone to dismissing improvements that aren't engineering-backed. But all life is storytelling, and labeling that work as "button-pushing" is… dismissive, to say the least.
What I got from the essay: "brand is the only way to beat competition when you can't significantly beat them on quality". It's basically the market suffering from success. You can buy a cheap quality watch today.
For some product types there is no better alternative, like ISPs. But I'd argue this is because of monopoly, which is different from brand. Most monopolies (like ISPs) usually have negative brands, and there's no alternative not because one can't create a better brand (that's easy), but because the upfront cost to become profitable is too high.
Apart from the issue is omega (swatch group) has 3x the turnover of patek.
The other part of the story is swatch is also quite successful at the shit tier watches as well.
So this article misses the point really.
> Now they cost a lot because brands spend a lot on advertising and use tricks to limit supply, and what the buyer gets in return is an expensive status symbol.
Sounds a hell of a lot like the diamond industry. Also, the top fashion houses, but both industries are taking a drubbing from artificial competition (artificial diamonds, and knockoffs, of various stripes).
I'm a believer in branding. I worked for many years, for a company with a "top-shelf" brand, and saw what it took, to maintain. But it takes a huge amount of discipline and "silly" stuff. Brand damage can come from a million different directions. I have found very few people are willing to do what it takes to maintain a top brand.
For quite a while, there have been "brand-only" products, like Von Dutch, or Life Is Good™. They are the two-dollar hat, with the twenty-dollar logo. Like Izod Lacoste or Members Only, in the last century.
How do "big brands" deal with efforts pretty clearly (but deniably) aimed at sabotaging their brand? Besides the ebay approach.
Like pissing in beer vats?[0]
Sometimes, you can't fight it, but other times, trying to correct can only make things worse.
This is where having sober, experienced PR people and CEOs comes into play. There's no "textbook" way to deal with this stuff. It is different, each time, so you need smart leaders (something in short supply, these days).
The company that I worked for, was a camera company. One of their brand-protection strategies, was to have as much control as possible over any images made public from their cameras.
They went waaaaaay out of their way to help photographers get the best results, and it was a bitch to get test images from prerelease kit.
[0] https://www.atlasobscura.com/articles/corona-urine-rumor-cou...
His point of Omega doubling-down on the things that would progressively harder to establish a moat on made me think about what we have been seeing with higher ed. It seems the "smart ones" definitely read the book that making the "education better," in a world where it is mostly free, was a fool's errand, and now the margins that they all compete it stray far, far away from the quality of the schooling. I work in K-12, and see the same things happening here too.
P.S.: It is odd to me to have such a length pg essay been up for such a long time with just a handful of comments. Did something happen? I would've expected a wealth of discussion on a post like this by now.
I think there are a number of reasons for this, but a couple come to mind. First, pg seems distant from YC now (to those not at office hours, I guess), and rarely publishes new essays, so he's rarely discussed or present in the minds of commenters here. Also, pg has the fortune or misfortune to write in a way that feels like some LLM writing, when he's writing well. I haven't gone back to earlier essays to check this notion, but I think he's going out of his way to break up thoughts into less likely sentence fragments, now, which give his recent writing a choppier, less well-written feel, with standalone sentences like
> But you could recognize one from across the room.
and
> Or maybe not so lucky.
and starting a paragraph with
> For men, at least.
Omega's entire brand was accurate tool watches. The megaquartz was peak luxury for someone that wanted accuracy and style https://chronomaddox.com/omega_megaquartz_2400.html
yeah they were force merged with ETA, longines, Hamilton and eterna, which basically dominated the swiss watch industry .
Patek Phillipe was all about just being expensive with other people's movements. They were the balenciaga of watches (subjective view point there.)
The something that happened was ChatGPT. Enough commenters didn't like the idea that everything they write publicly online is fed in as training data for AI that there's been a shift in this site's community. That, and everyone got laid off, either for section 174 or AI reasons, but Twitter employees are no longer collecting that fast paycheck and posting here. I'm sure a data scientist could make a good analysis of if what I'm saying is backed by actual data, but that's my feel based on spending more time on here than is healthy.
Hoping to add to this perspective:
The ability to transfer a lot of money in the physical shape of brand watches costing 200k per piece may have added to their appeal. AppleTV’s show Friends and Neighbours upselling their value as Jon Hamm tries to steal them from neighbours may be product placement. But these were all tactics from the 50s and 60s where relatively few media sources meant you could buy your way into the hearts of the masses with an ads campaign.
Today we have a massively accelerated pace of society burning through fads and information - largely due to social media. The artificial scarcity trick is no longer an MBA secret. A brand, especially an AI brand, can burn in and out of favor in days. Transparency in society helps maybe bring out authenticity. Advertising of the past was often “advertising to your weaknesses” and that game is over.
If we can structure the transparency and apply it to politicians and other less transparent institutions that count on “Brand” to the list (especially ones with high margins and large networks) maybe the world will see true competition that benefits everyone more. Lack of transparency (and liqidity, and availability) are what make trust bubbles that distort markets.
> "Brand is what's left when the substantive differences between products disappear. But making the substantive differences between products disappear is what technology naturally tends to do. So what happened to the Swiss watch industry is not merely an interesting outlier. It's very much a story of our times."
Really interesting parallel between decidedly traditional technology and today.
Naomi Klein’s famous book No Logo* does a great job diving into the expansion of branding that happened around the 80s and into the 90s. As someone who’s lived in the post-branding world my whole life, it reads like an anthropological text about my culture from an outsider. It’s fascinating the kinds of things we take for granted.
* https://bookshop.org/p/books/no-logo-no-space-no-choice-no-j...
> Jaeger-LeCoultre's web site says that one of their current collections "takes its inspiration from the classic designs of the golden age of watchmaking." In saying this they're implicitly saying something that present-day watchmakers all know but rarely come so close to saying outright: whatever age we're in now, it's not the golden age.
not sure what tfa is trying to say here, but this is far from being an indictment of the current age. the term "golden age" is (from what I've seen) usually used for the time when an industry or field was taking the leap from niche to mainstream, and in the process defining some of the things that would later come to be considered characteristic. by that token, of course the golden age of watchmaking is not today - the field has already gone mainstream and indeed does retain a lot of the characteristic features that the golden age innovated upon and defined.
GPT doing a great job summarizing and providing a counter:
what's they key thesis here and the argument ?
*Key thesis:* When technology eliminates meaningful performance differences between products, industries shift from competing on *engineering and function* to competing on *brand and status*. The Swiss watch industry after the quartz crisis is a clear example: mechanical watches stopped being valuable tools and became *luxury symbols whose value comes mainly from branding, scarcity, and signaling wealth*.
*In one sentence:* The essay argues that when technology makes functional differences between products disappear, industries shift from engineering competition to branding competition, and the modern luxury watch market illustrates how that transformation works.
---
If you want, I can also explain *why this essay is controversial among economists and designers*—there are a few big assumptions in the argument.
And the counter A few places the argument is debatable (even if it’s persuasive as a narrative):
It treats “brand” and “engineering” as mostly opposed. In practice, luxury buyers often do pay for engineering (finishing, durability, serviceability, movement architecture), and those technical choices can reinforce brand rather than fight it. The tension is real, but not always zero-sum.
It downplays other drivers of the Swiss recovery. The rebound isn’t only “they discovered brand.” Things like Swatch’s role in recapitalizing distribution/production, industry consolidation, improvements in manufacturing, and globalization of luxury demand can explain a lot of the late-1980s revenue surge alongside marketing.
The “artificial scarcity = managed asset bubble” framing is provocative but contestable. Scarcity can be interpreted as: capacity constraints, quality control, long-term brand stewardship, or channel strategy—not necessarily “bubble management.” It may function bubble-like in resale markets, but that doesn’t prove intent or fragility in the way financial bubbles work.
Some claims are asserted more than demonstrated. Examples: Rolex “abandoned research” after ~1960; “only three survived as independents”; “most brands are owned by six holding companies”; “they rebuy hundreds per year.” These might be true in broad strokes, but the essay uses them as load-bearing supports without showing evidence in-text (beyond a couple notes).
The design-history claims are simplified. Watch size and shape trends aren’t only branding; they’re also driven by changing tastes, ergonomics, manufacturing norms, sport/tool styling, and shifting notions of masculinity. “Big = cheap historically” is directionally true in some eras, but not a universal law.
The gender section is especially shaky. “Women never really went for mechanical watches” and the steam-engine analogy read like overgeneralizations—there are strong counterexamples (and cultural variation) that complicate that story.
Brand are brittle. It takes a single CEO associated to some pedophile network or make a nazi salute and it's ready to plummet.
If the business really mainly on the technical merits of the product/service, even blank brand is an option. Many brand as a façade to a single plant is a different tradeoff.
He's omitting the most important bit. Data from the OECD shows highly unequal societies tend to be more status-obsessed, leading to higher spending on "positional goods" (items bought to signal status). These economies often have higher advertising expenditures (as a percentage of GDP) to fuel that competition. Inequality is quite corrosive in many ways, including leading to fascism.
I petition to rename "feature" as "complication" on software teams.
Maybe the phone market is still in its golden age? It's a wonder you can get the best phone in the world for only a little over $1000. And everyone can buy it. Online without a line.
Comparing with luxury watches which cost a magnitude or two more and are beaten in precision by a $10 casio.
I guess the thing to watch out for is technical stagnation and "good enough"? Uh..
I kept thinking that he'd eventually compare it to writing software by hand, and how we're at the end of one golden age. But he never did. So I wonder what the impetus for the essay was.
Apparently this was written to wrap the AI promotion:
"The more subtle lesson is that fields have natural rhythms that are beyond the power of individuals to resist. Fields have golden ages and not so golden ages, and you're much more likely to do good work in a field that's on the way up."
Cigarettes were resisted, leaded fuel was resisted, nuclear energy was resisted. AI is already being resisted and the resistance will grow.
The question in the zeitgeist is whether coding agents will be to software engineers as the quartz revolution was to expert watchmakers.
Commoditized software is here. Will there be a market for high-end, luxury software? Becoming an artificially scarce veblen good is unlikely to work for digital goods the way it has for watches.
Wild timing on this. Been seeing a huge uptick in people "trying to learn opsec" as they fumble around for ways to make money with openclaw and land on "selling fake bags/shoes/watches", seemingly emboldened by those who value these brands trying to use openclaw to secure mispriced items or snipe auctions.
Funny thing is, I'm not sure anyone is actually doing either thing successfully. Every time I've looked into an openclaw success story it's ended up being complete fiction.
EconTalk from last month on the topic: https://podcasts.apple.com/fi/podcast/seiko-swatch-and-the-s...
Obviously not the main point, but I've been reading watch media online for over a decade now, I've read or heard this "Quartz Crisis" story hundreds of times and never ONCE read about the coincidence with the Bretton Woods agreement. Makes sense though, its basically oral history.
I'd love to read more about the coincidence with the Bretton Woods agreement.
Wdym 'oral history'? Who has been talking about this history orally?
software is becoming like the fashion industry. you go to Prada vs Hermess because you think one does better shoes and the other better bags. But is not because neither could do better shoes or bad it isb ecause your mind positioning is set.
Software. everyone can do it now. but you still buy lets say Crowdstrike for security, because is in your brain for years as security software.
Also explains why German cars look the way they do today. Emphasizing the brand, so everyone can see it.
> So the only thing distinguishing one top brand from another was the name printed on the dial
Respectfully disagree.
Since the 60's (and one could argue, even long before that), watches are 1) fashion, and 2) male wealth-signaling fashion. That's it. Nothing more. And for males who subscribe to this wealth-signaling cult, they know from a long way away what watch brand is on that guy's wrist.
Okay, today's brands signal maybe a little differently than just wealth. Casio G-Shock watches aren't substantially different than their non-G-Shock counterparts in any significant way, but they cost way more. The G-Shock brand signals... I dunno, sportsy-ness? Maybe it is closer to a pure fashion brand here.
I think we've been in "The Brand Age" since the advent of advertising. There are plenty of products that have virtually no differentiation besides brand, and there (almost) always has been.
> they know from a long way away what watch brand is on that guy's wrist
No, they didn’t. The makers of movements and makers of cases were separate. From far away you only know the case on the wrist. Not the movement. (I think Rolex was the first mass-market Swiss watch brand to vertically integrate. Patek may have been the first boutique.)
The movement isn't part of the brand. It's not part of the signal. The case/dial/sometimes band are the brand. And if you couldn't tell them apart, they wouldn't be any good at signaling, the entire point of wearing them.
> movement isn't part of the brand. It's not part of the signal. The case/dial/sometimes band are the brand
The movement was the expensive part. Audemars, Vacheron and Patek only made movements. The retailer would then put it in a case. That’s the entire point of PG’s essay.
> if you couldn't tell them apart, they wouldn't be any good at signaling, the entire point of wearing them
Which might lead you to revise your hypothesis around why these watches were bought and made in the “golden age of watches.” Then as now there is such a thing as quiet luxury.
> Patek only made movements
I don't think thats really true, Audemars & Patek deffo made entire watches in the 50s.
Don't get me wrong they also designed movements, but by the time of the quartz crisis, Patek bought in movements from outside.
It doesn't really help that omega and tissolt were merged with Certina, ETA, hamilton when then turned into swatch, which basically dominates the entire swiss watch industry along with rolex and richemont(who own Vacheron)
It’s sort of hard to unravel what’s part of the brand, it’s all imagination anyway.
The watch manufacturer, as part of their reputation, buys “premium” internal components. And then the hardcore watch-heads get to know that this model has that premium movement. Everybody in the club gets to signal to each other by knowing internal details that outsiders don’t notice (or even details that can’t be noticed, I mean, I assume by nowadays non-premium-brand movements are functionally identical to the premium ones).
The whole point of pg's essay is that signaling transitioned into being the entire point of wearing them primarily in the 1980s.
They were. The Acquired podcast on Rolex really opened my eyes to this whole world. They defined the playbook in the 1930s that Apple repeated in the 80s and especially 2000s.
I entered this cult last year. It’s been super fun to spot and infer from a distance, as you say, these hidden signals that men have chosen to spend $20,000 to $120,000 on.
G-Shock says “I do things that are so dangerous and so off the grid your Rolex or Apple Ultra would shatter and die”. And it’s true, out of my whole collection, that’s the one that will still be within a ms of true time 25 years after the power goes out after the nukes go off.
>The G-Shock brand signals... I dunno, sportsy-ness? Maybe it is closer to a pure fashion brand here.
I own (among other, nicer time pieces) a G-Shock. I bought it when I was in the military and frankly it's a great watch that has withstood some serious abuse. Maybe a cheaper watch would have also survived? I'd happily buy another but mine's still literally and figuratively ticking.
"When our time traveler peered into the windows of these shops, the first thing he'd notice was how large all the watches were."
My only question about this entire essay is... where did this time traveler came from???
"Our" time traveler was never mentioned until this line.
Not true:
> The best way to answer that might be to imagine what someone from the golden age would notice if we brought him here in a time machine. [...] The first thing he'd notice, if he walked through a fancy shopping district, is that all the prominent watchmakers of the golden age seem to be doing better than ever.
It was several paragraphs before that, where pg said "[...] what someone from the golden age would notice if we brought him here in a time machine."
https://www.econtalk.org/seiko-swatch-and-the-swiss-watch-in...
Don't worry, Seiko learned: https://www.grand-seiko.com/us-en/collections/sbgd223j
Grand Seiko makes some truly beautiful watches, and also some terribly gaudy horrors.
> One obvious lesson is to stay away from brand.
Wow, that is… not what I would recommend. Brand is one of the few things that will give you pricing power in the age of AI.
Because he focuses in the story of luxury watches, Graham sees only the brand tricks that work mostly for rich people.
There are brands for non-rich: Linux is a very strong brand but virtually free and non-exclusive at all (think Android phones). Patriotism and country reputation might also be thought as brands. E.g. would Portugal's tourist boom happen without the Portuguese tarts popularity?
Edit: my watch is a Pebble.
I expected this essay to end with a note about software's golden age.
“Why is the Patek Philippe Nautilus so expensive?”
If you have to explain why your product is expensive, maybe it shouldn’t be.
warren buffett always said brand was the only moat. only IP can be protected. Everything else can be replaced, rebuilt.
Sounds like pg is trying to justify an expensive new hobby :)
No, he's advising us that we software developers might be coming to an end of a golden age, that if so, resistance is futile, and how to find another.
finally, a new essay. and coincidently, its about something i have been thinking about all week.
I'm still not really clear on what the point PG is driving at.
However swatch group(omega was force merged in the 80s to form the swatch group) has 3x the turnover of Patek.
More over Swatch caters to both high end and the poors + kids. So brand is.. good? so long as you only cater for the rich? I'm not getting that really.
Somebody's getting into watch collecting! Quartz watches were also developed in Switzerland: check out the story of the Beta: https://goldammer.me/blogs/articles/beta-21-history-guide
I'm struck by the utilitarian mindset of this essay. What Paul so disparagingly refers to as "brand" can also be referred to as "art". People _want_ art, and will indeed pay good money for it. Said differently, people _value_ art enough to differentiate it from "optimal design", and indeed a subset of people will pay top dollar for a suboptimal but artistic design.
It is possible to view the fact that capitalist markets can turn a desire for art, individuality, and "something special" into a business as a bad thing. I'm not entirely convinced that's particularly interesting, though... it seems just a localized restatement of a generic "capitalism is bad" take.
I think he makes two points:
- This change of what used be a functional object into a brand was done to appeal to one-upmanship (my watch is more expensive than yours) rather than the aesthetic urge which drives appreciation for art. He doesn't blame the watch brands, it may have been the only way they could survive after the triple shock. But..
- If you're an engineer and techie type and are drawn to the complexity and mechanistic elegance of mechanical watches, he's warning you that the problems being worked on in the brand age actually take you away from good functional design which attracted you there in the first place.
In almost every category meaningful differentiation is a myth. It sounds nice to tell yourself you've got it and talk about moats or whatever, but it misses the point.
What people usually mean when they talk about differentiation is distinctiveness [1]. Design isn't a differentiator for these watches it's about being distinctive. At the end of the day when telling the time is commoditized, and expensive watches are just a status symbol it's all you've got.
[1] - https://marketingscience.info/news-and-insights/differentiat...
Chinese models are indeed cheaper!
Is it just me or are an increasing number of (high profile) people in the tech industry into luxury watches these days?
Gotta do something with those RSUs.
I asked Claude to psychoanalyze why I got obsessed with them and it said I’m likely striving for something tangible that appeals to my engineer mindset that isn’t now obsolete in the age of AI. It’s my career’s existentialism.
That sounds overly edgy. Tangibility has value, like buttons making a comeback in cars.
Status games are evergreen, and a lot of conspicuous consumption has fallen out of fashion. They've gotta flaunt their wealth and position somehow, and lambos are just too crypto-bro and gauche.
It's also a sales tactic - a watch can be a schelling point if you're looking to network with someone who's into it.
Watches were understated in the 70s and turned more to gold in the 80s and a super proliferation of diversity in the 90s. 90s also had machismo Schwarzenegger sized cases for steroid men.
2000s brought Hiphop bling culture to them which embraced maximalism with size further increasing and 85 diamonds and rubies being something worthy of showing.
2010s austerity led to a retreat all the way to 1940s style trench and dress watches, cases back to 38mm.
Post Covid, boldness is having a comeback. See the newest Planet Ocean. We are seeing bling and ostentatious gold again on celebrities this year.
Anecdotally, in the trenches, I'm seeing a proliferation of Casio F-91w and AE-1200s. Maybe a counter response, lol.
> That turns out to be a profitable business though.
He does not disappoint. Also, not buying the watch industry parable.
Nike is a useful test case (1) here. Brand was the whole competitive moat for them and once athletic gear commoditized, then management spent five years cutting the things that sustain it: athlete relationships, premium positioning, product development. Each cut looked (somewhat) rational on its own but none of them were, taken together.
(1) https://philippdubach.com/posts/nikes-crisis-and-the-economi...
EDIT: Nevermind comments are apparently just a pg meta discussion..
The question is, in this new software world order, how much do brands matter vs what they've done vs network effects. I could have Claude code shit out a Facebook or Twitter clone, or an Uber clone, and have none of the baggage of Cambridge Analytica, being owned by Elon Musk, or Travis kalanick of Greyball and S. Fowler legacy. An Uber driver-turned-dev could easily stand up a competitor and give way more money to the drivers simply by not having the overhead that Uber has with lawyers and executive salaries in this age of ChatGPT. Drivers will go to where there's riders and money, and riders will go to where there's drivers and cheaper rides. (and no drivers.) If someone needs an app idea to work on, it's the incumbents, without the suck. Facebook without "People just submitted it. I don't know why. They 'trust me'. Dumb fucks."
Because looking at Truth Social and Gab, people do adopt brands as part of their identity; and Uber but for drivers, or Facebook, without the spying, are trivial to make the software side of things on now. The fact that we haven't seen a dozen Uber competitors spring up is a testament to the fact that branding is a helluva moat. It's impossible to put a dollar value on it, but ChatGPT has no moat, except that it's Chat-fucking-GPT. The original chatbot and no matter how good Claude gets, it'll never be the original.
Also those vibe coded competitors will not make it. Feel free to try though
> those vibe coded competitors will not make it
Some of them will. And I suspect the set of markets in which they do will only increase—traditional SWE is probably dying, hard as that is to accept. But the fundamentals of engineering and business are nowhere close to going away. And those are the actually-hard parts of business.
(I look over to the Coca-Cola Classic on my table that I picked because my taste buds prefer the classic brand)
Your taste buds prefer the flavor, not the brand. If they changed their name to "Caramel Diet Fanta" but kept the recipe identical, you'd still enjoy the taste.
The New Coke brand failed because people didn't like the taste, not the other way around.
New Coke is a very interesting counterpoint to the brand focus, but on the other hand, they did at the time make a very big push of it being "New" Coke. Hard to tell what would've happened if they had just swapped out the formula.
I drink Diet Coke, which is basically the same formula that became New Coke with chemical sludge instead of sugar, and it tastes pretty good to my tongue to the point where I drink it over Coke Zero, the one closer to "the real thing".
Every time I drink a Coke (or any other soft drink), the brand's baggage (good and bad) is present. Unless you're doing a blind taste test, it's impossible to avoid that.
> I could have Claude code shit out a Facebook or Twitter clone, or an Uber clone
No, you couldn’t. At best you’d turn out a video game simulating Uber. The idea that all of the business is in its software seems to be one Silicon Valley perennially unlearns.
As long as we agree that code generation is capable of creating a video game simulating Uber, we're on the same page. The fact that there's more to a business than a flashy bit of software is exactly my point! The idea that Silicon Valley is one dude who doesn't get it is as old as the valley itself.
I've found the newer generation of founders understand that. The issue is they don't use HN anymore.
I've noticed a significant tone and demographic shift on the site over the past 2-3 years with more Western Europeans and Midwesterners and fewer Bay Area+NYC users, and fewer decisionmakers or decisionmaking adjacent people using the site.
And the deeply technical types who used HN largely shifted to lobste.rs.
Karrot_Kream (another longtime HN user) identified this shift as well [0]
[0] - https://news.ycombinator.com/user?id=Karrot_Kream
I agree. Where did they go? Blind? Private Slack/discords?
The Bay Area/NYC and founder adjacent folks I know are mostly on group chats and messaging apps. Fundamentally the signal on this site is too low to be of use in those conversations. It's difficult to discuss decisionmaking in a forum full of random Fortune 100 employee deep in a torrid company hierarchy complaining about what their management hierarchy wants them to do.
There's also a tension between the increasing "community building" happening on HN and the Bay Area/NYC crowd. A lot of them have an extant community largely based on in-person relationships. The more HN builds its own community, the more you alienate this set of people. In other words, Slashdotification is happening more and more to HN where a set of very online tech people who don't really make decisions generate most of the chatter on this site.
The younger generation of founders meets in-person and uses iMessage and Instagram. The older generation meets in-person and uses iMessage, Signal, or WhatsApp.
The reality is, most people are in-person now and conversations that were happening on HN because of the pandemic are now being done offline.
Blind is toxic, but at least the users are cynically realistic.
I can't respond to tzury's comment because it's already flagged and dead but I honestly don't think that's quite fair on this board.
The very same people who would be flagging that comment wouldn't bat an eye at saying they won't read or support anything by folks like DHH, or a hundred other prominent tech figures who have committed some ideological-wrong.
It's just a similarly heavy-handed reaction from the other side of the divide.
I don't find anything wrong or downvotable about people voicing perfectly valid criticisms about pg, his opinions, who he associates with and signal-boosts...unless these standards you all want to apply wrt cancellation are "for thee and not for me".
The very same people who would be flagging that comment wouldn't bat an eye at saying they won't read or support anything by folks like…
First off, you might be right for some small number of cases, but I’d flag any and all rants such as this, regardless of the target. Off-topic, and doesn’t contribute to the conversation.
Second, for those as you describe, when they go off on an off-topic rant about DHH, someone else will conveniently flag it.
There is not a single discussion on this board about DHH that doesn't get overrun with posts about what people think about the guy, regardless of the posts' topic.
> The very same people who would be flagging that comment wouldn't bat an eye at saying they won't read or support anything by folks like DHH
You have no way of knowing that. The guidelines against off-topic controversy and generic tangents apply, no matter who the author.
You've got enough karma to click [vouch] on the comment if you think it shouldn't be dead. It's a bit of a rant, and while there are good points, they're lost in an emotional diatribe and, I mean, I feel for them, but I can also see why it was marked dead.
I did click vouch, but I also still stick by what I said because I see all sorts of personal, emotional crusades against various tech figures reposted, signal-boosted, amplified, etc. on this board. I'm not saying that you're wrong, I'm just asking people to pause and think about what the comments would look like if this were in response to some other characters...
People like being repetitive on this board. Read Google in title and say “I never use Google because killing Reader”. It’s not like LLM. It is worse. Like hashmap. Deterministic same answer. That’s fine for them. But I have no interest in starting everything with a litany, land acknowledgement, and whatever other modern preface required.
We acknowledge this message board is the rightful unceded home of the startup enthusiast people. We affirm their right to it and recognize their sovereignty.
See, you enjoy me bringing pet subject into discussion with nebulous relation? You want always to see it? Good. I will do so. No downvote it unfair.
[flagged]