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Europa Star Feature: A business talk with Louis Erard CEO Alain Spinedi

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August 2015



Mr. E

Operating in the highly competitive mid-range sector, Louis Erard has succeeded in opening new markets, from Guatemala to Kuwait. But many obstacles remain. Interview with CEO Alain Spinedi.

Europa Star Feature: A business talk with Louis Erard CEO Alain Spinedi

What have you picked up from the latest Baselworld?

In general I noticed there were fewer people, particularly Russian and Italian clientele. But our sales were good, because buyers appreciate our ability to deliver our products very quickly. We don’t promise our watches for six months’ time, we deliver the following month! The hardest thing is still to get a foothold in new markets, and consequently to find good retailers in these markets.

So, what new markets have you opened up?

We have received our first orders from points of sale in countries as far apart as Guatemala and Kuwait. Today we are present in nearly 600 points of sale around the world. In 2014 retail sales were generally positive, particularly in Russia, the Middle East and Switzerland. But wholesale inventories have fallen.

Which markets are you hoping to develop further?

France and Germany are a priority. But it is difficult to develop as an independent brand, given the groups’ pressure on distribution. In addition, ETA has raised its prices upstream. We remain a small company of 25 people, based in Noirmont. And we have to take a number of demands into account: markets that need attractive prices and are looking for volume, such as India, Malaysia and Poland; and others, such as Switzerland, whose priority is value. We are adapting, and looking to meet all these demands, with a vast range of products that start at 800 francs. We are now distributed by Gübelin in Switzerland.

Where do you stand on smartwatches?

I’d venture to say that they won’t fundamentally upset the market, as the products are not sufficiently mature. They are primarily for the younger generations, and they still have to prove themselves. But we can’t afford to ignore them. I don’t believe smartwatches will have a great impact on Louis Erard. I see them as more complementary. It’s like your first razor... The novelty wears off quite quickly.