Innovation & Richard Mille

When it comes to innovative design Richard Mille certainly stands out, from an iconic watch design to an enigmatic CEO the brand really has made a name for itself since exploding into the luxury watch market in 2001. Innovation is a key for Richard Mille and it follows Maxims for product creation: Technicity, performance, and extreme resistance

The hefty price tags that Richard Mille watches have come to be known for are in large part result both from research and development costs and high product manufacturing costs.

High product manufacturing costs are down to cutting edge manufacturing techniques and the choice of using unconventional materials. Naturally this drives up the costs as it imposes strict manufacturing requirements, highly qualified experts are needed both in the research activities of the company and during the product manufacturing process (operating cutting-edge machinery). Moreover, the watchmaker limits the quantities produced in each “project”, often limiting the number of watches produced to thirty timepieces or less, to ensure rarity and exclusivity which are both key elements of the company’s value proposition. This can mean that cutting edge innovative processes or designs have a limited set of opportunities for being used, however this does not mean that these expenses are wasted as they have other uses.

The company leverages this rarity into a powerful marketing asset that functions as a brand asset, a major brand image strength is the extreme exclusivity of the products that only a fraction of the elite can dream of owning. Therefore, the research and development investments and the choice of using specific materials are powerful weapons in the marketing arsenal of Richard Mille.

In most cases in marketing exclusivity strategies rely on the progressive elimination of competition, research and development allow the company to develop new techniques, processes, materials, and designs that are then protected from imitation or copying by patents providing them with a clear means of differentiation.

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