During the 1960s, Omega was the premium product, yes, Rolex produced some solid timepieces, yet Omega was the leading brand. As an innovative business, Omega was a well respected organisation producing a quality product that declined in the late 1970s and 1980s before reinventing itself. We know this is not the case now, Omega is trying to match Rolex, but is a long way off.

When the quartz revolution hit, the Japanese technological invention antiquated the mechanical watchmaking business, it immediately made the mechanical movement obsolete. It was aptly named the quartz crisis and bankrupted a large number of Swiss watchmakers. So, when Rolex re-engineered their products as premium products, they became the Rolls Royce of watchmaking.

Omega was in financial distress and was swallowed up as a premium brand of the Swatch Group. Whilst this saved the company, as a subsidiary of a large global business, a large degree of autonomy was ceded. A counter-argument is the Swatch Group provides stability, marketing prowess and liquidity.

Omega is now in the unenviable position of trying to catch up to Rolex. Omega has a great product line, fantastic heritage, innovative designs and the technological advantage, having their reputation tarnished in the 1970s and 1980s has proved to be a major burden though. In the luxury product world, prestige is everything and Rolex has that prestige. 

Rolex is viewed as the Rolls Royce of watchmakers, a stodgy private company that relies on their legacy range of watches to generate growth. In watchmaking, reputation is everything with Rolex reigning as the king of watchmakers. A non-watch enthusiast knows the Rolex brand, but would be hard pressed to name the holy trinity of haute horology of Patek Philippe, Vacheron Constantin or Audermars Piguet – that is amazing.

So Omega is on the rebound, more people are aware of Omega products and plenty of people are willing to part with a premium to own some Omega prestige. Omega is more attainable too, the waiting list for standard timepieces is not long, a customer can walk out of a boutique with a Speedmaster, Seamaster or Constellation secured to their wrist. 

This is near impossible for Rolex, with the exception of the DateJust, walking out of a Rolex boutique with a Submariner, Daytona, Explorer or GMT Master is unheard of. Instead, your name goes on a waiting list and you will be contacted when one becomes available. The mark-up by the retailer must be phenomenal as the retailer is limited by manufacturer supply. This artificial scarcity is driving the Rolex products, a two year waitlist makes this product more appealing. 

The Omega boutique is an entirely different matter, there is little artificial scarcity created. With the exception of some very special releases, supply is pretty good and if you want one of the rarer models, it will be shipped in for you. Can Omega create artificial scarcity? Sure, they can but that would not be building their customer base. Why wait two years for a Rolex when you can have an Omega now with greater styling, a high tech movement, excellent quality control and a fast improving reputation.