4. They are produced in limited quantities.
Luxury products are by definition rare; and it’s their exclusivity that gives them so much allure. However, watches are not produced in limited quantities for this reason alone.
As we explained, luxury watches are still largely assembled and finished by hand, so scaling their production is not a possibility. Luxury watches are designed to last a lifetime, and even passed on through generations, so they are made, finished, decorated, and tested extensively before they leave the factory.
All these create a market with slow production time and high demand, thus keeping the prices of watches high. As an example, Patek Philippe is estimated to have produced less than a million watches since their inception in 1839.