What are the differences Between Omega and Rolex?

There is little doubt that the biggest rivalry in luxury watches is the one between Rolex and Omega. It’s the Coke vs. Pepsi of the watch world.

First, a little history would seem to be in order. Once upon a time, Omega was the “big dog” in Swiss watches and sold more units per year than Rolex. This was before quartz watches became a major factor in the 1970s. Omega produced a ton of watches, many of them the dressy Seamasters you often see for sale for very reasonable prices on the used market today. These were not really diver’s watches as they are now, but rather dressy water-resistant watches. During this time period, Rolex typically sold (fewer) higher-grade watches at a higher price point than Omega, or rather it could be said Omega sold more medium-grade watches than Rolex did. Then came quartz battery- powered watches, and everything changed.

Omega tried to compete head to head with the cheap Japanese quartz watches as did much of the rest of the Swiss watch industry. This approach nearly killed the Swiss watch companies, who couldn’t beat the Japanese at their own game. Rolex stayed the course, and kept producing high-grade mechanical watches. Rolex is owned by a private trust and could therefore take the long-term view that mechanical watches would remain in demand as luxury items. Rolex didn’t have to cave in to pressure from the marketplace or stockholders to produce large numbers of cheap quartz watches. (They did make a high quality Oyster Quartz in small numbers, but shrewdly realized their bread and butter should remain mechanical watches.)

Omega was weakened by the worldwide economic crisis of the 1970s as well as by the quartz technology threat from Japan and was restructured as part of the Swatch Group in 1983. During this time period, Rolex increased market share until they became the undisputed King of Swiss watches, out-selling all other brands.

Omega has been steadily increasing their prices in recent years, some say as a move to compete more directly with arch-rival Rolex. The argument seems to be that if Omega raises prices, they will be perceived by customers as more on Rolex’s level. Omega have also been tightening control of their dealer’s pricing—another move that seems to follow the Rolex lead—and increasing the amount spent on advertising. Has it been working? Yes, according to industry statistics. Omega has started growing their market share by following the Rolex business model.

So what does that mean to the consumer shopping for a nice watch? Should they go for an Omega or Rolex? I have both, and must say Rolex continues to outperform Omega in re-sell value. If re-sell or investment value is important to you, I’d still advise a first time buyer to seriously consider Rolex, if up-front cost isn’t the greatest consideration. Omega makes fine, world class watches—I am particularly enamored with the classic Speedmaster Professional “Moon Watch” and consider it a great value—but Rolex is the most well known watch brand in the world today and will probably continue to be so for the foreseeable future. That makes Rolex the safest bet in terms of prestige and re-sell value. As they say, you pay your money and you take your chance. Getting the most value for your money is always a wise course to follow.