I found a great deal on a luxury watch brand I haven't heard of, is it a counterfeit?

Not necessarily, but they might be luxury watch imposters. Fakes copy the well known brand names you probably have heard of. But there is another category of wristwatch products being sold on the Internet and through magazine ads that are not actually counterfeit--but they are sold using outrageous misrepresentations and should be equally avoided.

These "luxury watch imposters" are inexpensive watches being misleadingly represented as if they were fine luxury timepieces. They are sold under their own brand name, so they are not fakes of another company's brand. But their products are of modest to staggeringly cheap manufacture and have none of the merits of the fine, expensive brands they allude to. The typical scam on these are a combination of:


An impressive Swiss, German or European sounding name.
An impressive "retail price" or "RRP" (recommended retail price).
Fancy verbiage that sounds like what a luxury watch brand would say.
Impressive comparisons of features to those of "other" luxury timepieces. A special price you can buy it for that is incredibly below the retail price.

The deception here is that claimed retail price is a complete lie. These watches sell regularly at prices that are a trivial fraction--often as much as 70-95% off--of their claimed retail value. How can they sell them so cheap? Simple, they are cheap watches. Ones made to be profitably sold in the low, usually US$10-75, price range of their actual asking price. Any perception that these luxury imposters are even remotely worth in the US$250-2500 range is nothing more than pure marketing bravado and intentional deception.

Consumer protection agencies clearly label such exaggerated retail pricing as a misleading and deceptive sales tactic. The following is an example from the United States Federal Trade Commission (FTC):

"Many members of the purchasing public believe that a manufacturer's list price, or suggested retail price, is the price at which an article is generally sold. Therefore, if a reduction from this price is advertised, many people will believe that they are being offered a genuine bargain. To the extent that list or suggested retail prices do not in fact correspond to prices at which a substantial number of sales of the article in question are made, the advertisement of a reduction may mislead the consumer."

Here are some tips on spotting luxury watch imposter brands:


No real luxury watch sells new for a street, catalog or Internet price of under US$250.

No real luxury watch sells new for more than 50% off of its genuine retail price--even from the most aggressive discount dealers.

No real luxury brands are ever sold at "fire sales," massive inventory clearances or end of model year closeouts. They are valuable jewelry items that no business ever has to resort to liquidating at a below-wholesale loss.

A real luxury brand will be well discussed on the Internet. Do a Google search for the brand name. If you can't find collectors and owners discussing the merits of the brand, it is unlikely to be a true luxury brand.
A real luxury brand will be sold through well known dealers. If you see a brand sold mostly on auction sites--and never anywhere near it's claimed retail price--it is not a luxury brand.

Only in rare cases do these ultra-cheap imposter brands have official company websites that showcase the products. Just because you see a incredibly sophisticated website doesn't ensure that the brand is actually a valid luxury brand.

specific brands known to play the luxury watch imposter game are:


Klaus Kobec -- Advertises heavily in magazines as being comparable to US$2,000+ watches, with a retail price of US$900, but can be yours for only US$200.
Krug Baumen -- Sold on auction sites. Claims "RRP" in the £475-625 (US$900-1,200) range, yet they routinely sell in the £15-50 (US$30-100) range. Even has an impressive looking official website for the brand.
Montre Suisse -- Sold on auction sites especially in the United Kingdom, often in bulk lots of 5 to 10 pieces. Claims a retail price of £129.99 (approximately US$250), yet are sold in any quantity you want for less than £5.99 (US$12) each. Ironically, their name translates to "Swiss style."
Ultimately, any deal on a new luxury timepiece that looks too good to be true... is assuredly a scam. The economics of the manufacturing and selling products make it impossible for new wristwatches to be sold at 70-95% off of a legitimate retail price. Deceptive retail prices are used to get buyers excited that they are "saving" hundreds of dollars on an item. An excitement that causes them to overlook that they are really only purchasing low-end merchandise that is neither a luxury product nor worth anything more than the dime-store price they actually paid for it.

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