Why luxury watches like Rado / Rolex are so costly or expensive..are they overpriced

This question is there in my mind from long, I have seen that luxury watches are so costly compared to normal watches, for example, a RADO watch is selling for Rs. 95000, now thats costly thing. I wonder what is in that makes it so costly ? Is it only brand or it has something to do with the watch also ?I see that watches comes with lots of features like chronograph, date / time, special functions etc. but in budget brand like Maxima you can buy a watch with tachymeter, chronograph for Rs. 2000 or lesser.. At 95K , I can only imagine use of lots of Gold or something , is it what makes luxury watches costly ? Metal stainless steel strap watches are generally costly but still how can it make upto 95 K ? Any idea or suggestion ?

I don't know but people buy them because mostly to show off.

From my point of view , they are just stupid / dumb costly watches. But also make sense for those who are earning in 8 figures or more. After all they need a way to spend money, why not on these costly dumb watches.

I also have some premium watches (not that much costly) and its just fun wearing them, you can easily notice people staring at your watch and trying to find out the brand and its value. Some get delighted to see costly watches and some get jealous. Its fun to wear these watches though.

Its just upto you to buy them or not. I think there are buyers and we have those watches.

Some watches are costly because of craftmanship involves in it. For example, Rolex has got 400 patents and they use Gold alloy in casing.. so costly watches are more about their own unique way to do things. Just like iPhone, they also have brand value. You buy them because you can afford them and it also means that you are buying something of top-notch tech and quality in that particular segment.