On May 16, the long-awaited and over-hyped Royal Pop Collection was slated to go on sale at Swatch retail stores around the world. Anticipation was running high for the collection of eight candy-colored and highly stylized plastic pocket watches that were the result of an unlikely collaboration between the exclusive high-end luxury Swiss watchmaker Audemars Piguet and the Swatch Group. Unfortunately, the launch did not go as smoothly as everyone hoped. Crowds in the hundreds started to show up before stores opened, and police needed to be called. My local Swatch retail store at the King of Prussia Mall made the news because rowdy patrons attempted to swarm the mall before it even opened. This prompted the Swatch store to remain closed for the day as police were called on the scene. Those lucky enough to get their hands on the $400 mass-produced watch were able to immediately sell it on the secondary market for thousands of dollars. This is pure insanity for a product that isnt even limited in production. The Swatch Group even made several statements before the launch telling buyers that this collection of watches would be readily available in Swatch stores for months if not years to come. That said, most of the buyers were in fact resellers (not watch enthusiasts) who just wanted a quick payday by flipping the product online. Unfortunately, this is the sad state of watch collecting in the modern era. Behind all the hype of this product, however, lies a lot of controversy. You would be forgiven if the name Audemars Piguet does not resonate with you. Audemars Piguet is one the most exclusive high-end luxury Swiss watchmakers. Along with Patek Philippe and Vacheron Constantin, they make up what is known as the holy trinity of watch-making. All of these companies are a considerable step above every other luxury Swiss watchmaker including Rolex, and their prices suggest it. While Rolex is also a luxury Swiss watchmaker, the company produces over 1 million watches per year, and certain less popular models can be had for under $10,000. What Rolex does well is they control who can purchase their watches on the primary market. You cant walk into any Rolex retail store and buy their current most popular models like a Daytona or a Submariner. You either have to spend a considerable amount on other products first or know someone who can invite you to buy the hottest watches, which can in some instances cost more than $20,000 each. In contrast, Audemars Piguet produces less than 50,000 watches per year, and each watch made has an average retail price of about $40,000. Keep in mind however, this is for their average watch. Their most popular model is known as the Royal Oak, which was introduced back in 1972. Buying a current Royal Oak model will set you back anywhere from $50,000 to $70,000 or more in todays market. On the complete opposite end of the Swiss watch-making spectrum lies the Swatch Group. Started in the early 1980s, the company is known for mass-producing colorful cheap plastic watches that come in a variety of neon colors and styles. The company is known for being extremely affordable, and even today certain stylized models can sell for less than $100 a watch. And this is the reason why high-end luxury watch enthusiasts are struggling to understand the collaboration between these two companies. The only thing they have in common is that they are both Swiss watchmakers, but as more than one watch enthusiast recently lamented on an online watch collecting forum, Swatch is the Swiss equivalent of Timex. Therefore, a lot of people do not understand what Audemars Piguet is getting out of this collaboration. In fact, some diehard watch enthusiasts are now accusing Audemars Piguet of possibly devaluing their own brand by agreeing to produce a $400 plastic version of their most adored watch. Ironically, though, this is what is helping facilitate the dramatic demand on the secondary market. The type of consumer this product is aimed at is all too happy to shell out $400, let alone to pay a premium on the secondary market to get a cheaper plastic version of a watch that normally sells for $50,000 or more. Swatch, however, did make some changes to the original Royal Oak design. The newly stylized Swatch version of the Royal Oak is a pocket watch that clips onto clothing, belts, or bags, unlike the Audemars Piguet original, which is a wristwatch. Some collectors are attempting to get all eight examples that make up the collection, which means if they can get these all at retail, they will spend roughly $3,200 to have a complete set. It should be noted that this is not the first time the Swatch Group did a collaboration with another watchmaker. Back in 2022, they teamed up with Omega and released a line of watches called the Moonswatch. These watches were very popular upon release, but today you can walk into any Swatch retail store and easily buy one. That particular collaboration did not generate the amount of disdain from other watch enthusiasts that this current collaboration did. However, this is where I disagree with most watch connoisseurs who think this is going to devalue the Audemars Piguet brand. In fact, I believe this is genius level marketing on behalf of both of these companies. It is clear that Audemars Piguet is most likely receiving a small licensing fee from the sale of each one of these watches, while Swatch is the one that is handling everything from the marketing to the production to the retailing of this collection. These watches are only available in Swatch retail stores, as Audemars Piguet is not selling them. As a result, the Swatch Group is taking on all the risk, but I also think there is a more genius marketing strategy at play here that most people are not considering. This $400 pocket watch is well less than one percent of the cost of an original Audemars Piguet, so the end consumer is not anywhere near the same demographics of someone who can afford an original. However, a lot of watch enthusiasts fondly remember their very first watch, and more than likely it could have been a Swatch. There are high school- and college-age young men buying these $400 watches. And if by chance even less than one percent of the people forking over $400 for this grow up to be able to afford an original Audemars Piguet Royal Oak watch, then it was very clever of Audemars Piguet to engage in this collaboration, especially with Swatch taking on all the marketing and production. Brand recognition is all that matters, and, in an economy where people at the top are doing well while everyone else is practically struggling, how else can you find a way to promote your brand to different demographics without actually devaluing your luxury product line? This is ingenious from that perspective and should become a case study of marketing in business schools across the world. This is the one time (pun intended) where I fully disagree with the critics of this collaboration. Until next time (okay, Ill stop with the puns now, I promise, as it is time to end the article). Shawn Surmick has been an avid collector since the age of 12. He currently resides in his hometown of Boyertown, Pa., and is a passionate collector of antiques and collectibles. His articles focus on various topics affecting the marketplace.