Yeah, but that's sort of the point, isn't it?
Most people don't buy a very expensive watch because they want the best quality mechanism, they buy it so that people will see that they are dressed up and doing well. 100 years ago, you spent more to get a very high quality watch because it was the most accurate and durable. Today, a $30 digital watch (or your phone) keeps better time than a $25,000 Rolex. Some people are real watch enthusiasts and they enjoy knowing about the mechanism, the complications, etc... But most people who want a fancy dress watch buy it so that people will see that they have a fancy dress watch. And that $400 superior watch won't provide what his customers want, even if it is technically "better" than a Rolex.
Think about the diamond industry. Diamonds aren't actually that rare, but the DeBeers company has a monopoly on a lot of the mines, and they have spent a century convincing people that they are priceless and that if you are getting engaged, you had better buy one or you aren't serious.