Technological innovations have made their way into the luxury watch industry, reshaping everything from manufacturing to marketing. This digital transformation has brought new perks to the industry, including increased customer engagement and product innovation.

Traditional watchmakers are embracing technology, but not to the point of displacing heritage and craftsmanship. For instance, Richard Mille has been collaborating with other industries to bring fresh complications and materials into its watches like the monocrystalline silicon movement.

Touchscreens

The use of touchscreens in a watch is an excellent way to add functionality to the device without adding additional buttons. Touchscreens are intuitive and familiar to young generations, and they also enable the device to be made smaller. The technology is available for both analog and digital watches, and there are many different types of touchscreen watches.

Touchscreens have several advantages over traditional watch buttons, including the ability to show more information on a screen and the fact that they can be used with one hand. The technology is particularly popular in digital watches, which can be very small and have a much higher resolution. They also allow the wearer to interact with the watch with more gestures, making them more user-friendly than traditional watches.

There are many different technologies for touchscreens, but the most common is capacitive. This technology uses two layers of glass separated by a layer of plastic or other material. The front and back layers are both coated with indium tin oxide, and they have different voltages applied to each layer. When a finger touches the screen, it causes a short between the layers, and the sensor detects this change. The sensor then digitizes the point of contact as an X-Y coordinate.

Another type of touchscreen is optical. This is the most common type of touchscreen, and it is used in digital watches. The first optical touchscreen was patented by AT&T Corporation in 1962. It had a matrix of collimated lights shining orthogonally across the touch surface, and it used photodetectors to detect shadows that were caused by a finger touching the screen. Later versions of this technology used pulsing emitters and nonorthogonal matrices to improve performance.

Many luxury watch brands are incorporating new technology into their products. But it is important for these brands to make sure that they do not overdo the integration of technology, as this could detract from their brand heritage. This can be accomplished by using a combination of old-world craftsmanship and innovative technology in a way that is not overbearing. It is also important to provide multiple ways for customers to buy the product, including e-commerce and social commerce.

Blockchain

The blockchain is a global digital database that keeps a record of transactions in a secure and unalterable way. The technology is used by some luxury brands to help prevent counterfeiting and stolen timepieces. This is accomplished by adding information to the blockchain that can be verified by anyone with a cryptographic system. This allows the next owner of the watch to be sure it is authentic. This is especially useful for high-end watches where the cost can be significant.

This year, both Ulysse Nardin and Breitling have added the blockchain to their watches. The technology enables the brand to add a digital service history to each watch, providing a tamper-proof record that can be validated by any authorized repair center or retailer. This can also help preserve the value of a watch on resale as buyers can be confident the watch is legitimate.

Blockchain also provides an opportunity for a new type of authentication, which can be done using a token. Tokens are unique pieces of data that represent objects in the blockchain ledger. They can be purchased and traded, just like a cryptocurrency. When a person buys a watch, they can transfer it to another user by giving them the token for the watch. This new authentication capability could disrupt the resale market and reduce fraud.

More importantly, the blockchain can be used to improve sustainability and ethical sourcing for luxury goods. For example, blockchain can track where raw materials come from and how they are sourced. This helps consumers make informed choices about what they are purchasing.

Lastly, the blockchain can also be used to create a digital twin for each physical product that records all useful information in one place. This is known as a Digital Product Passport or DPP. This will allow brands to connect with consumers and increase loyalty by delivering a more personalized experience.

While many of these innovations are still in their infancy, it’s clear that they can have a big impact on the industry. Blockchain can help prevent counterfeits, improve customer retention and loyalty, and increase the resale value of luxury goods. As more of these technologies mature, we will see more and more brands implementing them in their products.

3D printing

3D printing has become an increasingly common tool for luxury watchmakers to prototype new designs. In some cases, it has even entered production. Swiss luxury goods giant Compagnie Financiere Richemont SA (SWX: CFR), which owns brands including Officine Panerai, has recently used 3D printing to create high-end watches with titanium components made from fully recycled material using patented technology by IperionX (NASDAQ: IPX).

A recent prototype created by the company, the Pam 578 Lo Scienziato Luminor 1950 Tourbillon GMT Titanio, features a delicate titanium case with titanium screws and anodized sapphire crystal. The titanium was created by using the Direct Metal Laser Sintering process, which builds layers of powdered titanium with a fiber optic laser. The result is a dense, lightweight component that’s half the density of brass watch components. The timepiece has a price tag of over HK$1 million.

While the 3D printing process is gaining popularity in the luxury watch industry, it’s not without its challenges. One big challenge is that the technology is not yet accurate enough to make it suitable for precise parts and movements. For example, the Manousos Tourbillon 1000% uses a complex design that requires a small tolerance range, but current printers aren’t capable of producing parts with precision as fine as the ones used in traditional movements.

The good news is that as 3D printing becomes more accurate and affordable, it will continue to find its way into the world of luxury watches. Oris, for example, recently announced a partnership with 9T Labs to use its Red Series Additive Fusion Technology in its new ProPilot Altimeter wristwatch. The case was printed with PEKK — a material that’s reinforced with glass, carbon, or basalt fibers to offer superior mechanical strength and aesthetics.

While many experts believe that desktop 3D printers could allow consumers to print their own functional watches, it’s not likely to happen anytime soon. The quality, tolerances, and materials needed to produce a usable watch wouldn’t be available until 2025 at the earliest. Until then, luxury watchmakers will be relying on other technological innovations to stay ahead of the competition.

VR

Virtual reality, or VR, is a powerful technology that has the potential to revolutionize the luxury watch industry. Its immersive and interactive features allow consumers to experience watches in a more realistic way than ever before, allowing them to make informed purchasing decisions. In addition, it can enhance customer engagement and increase sales. In the future, VR could be used for other applications, including enabling users to try on watches in augmented reality (AR).

The AR virtual watch try-on experience has become increasingly popular among luxury watch buyers. It can help them visualize a watch on their wrist and see how it looks with different outfits. This feature can help customers feel more confident about their purchase and build trust in the brand. Additionally, AR can help overcome traditional limitations of retail spaces by letting consumers explore a wider selection of watches without any physical constraints.

Many luxury watch brands have incorporated this technology in their online stores to provide a unique and immersive shopping experience for consumers. For example, Chopard has created a digital showroom that combines VR real-scene tours, 3D product showcases, and AR virtual try-ons. The result is a personalized journey that allows consumers to immerse themselves in the world of Chopard watches and explore its iconic collections.

VR is also a great tool for luxury watch companies to promote their products and build brand loyalty. It helps them connect with consumers in a unique and innovative way and allows them to stand out from their competitors. This type of technology is particularly effective in attracting tech-savvy shoppers who value immersive and interactive experiences.

Augmented reality virtual watch try-ons can be shared on social media platforms, which can boost brand visibility and attract new customers. These virtual experiences can be used to market new products, test out the functionality of a watch, and even make an order. In addition, they can help build brand loyalty by demonstrating a commitment to innovation and customer-centricity.

The luxury watch industry is constantly evolving to meet the needs of today’s sophisticated consumers. With technological innovations like AR, VR, and 3D printing, the future of luxury watches is bright.