The message to watch companies is to focus on value. Make sure a watch demanding $5,000 is actually worth that, and can be communicated well to the consumer. Otherwise they will need to focus on the sub $1,000 segment if they wish to see any retail space in the next few years. Lastly, watch companies must adapt to the times and embrace the Internet as a strong sales, distribution, and marketing channel. They can learn from Rolex, the most powerful watch brand in terms of value, which also spends the most money on advertising. Coincidence? I think not. Estimates see these trends improving over the next few years, but we shall see just how much, and in what way that happens.