WATCH PRICES: the great upheaval
25 May 2017

WATCH PRICES: the great upheaval

A SPECIAL REPORT COMPILED by Pierre and Serge Maillard
- Reshuffling the price cards
- Price constellation
- It’s the fault of…
- An objective look
- Denis Asch “I wanted to sell watches, not prices”
- Price hike between 2000 and 2010, then the slump
- All china’s fault?
- “As soon as a price goes up, they look elsewhere”
- The internet has changed the rules of distribution
- To raise or lower prices?
- A paradigm shift for distribution
- “Retailers need to turn into gallery owners”
WATCH PRICES: reshuffling the price cards
25 May 2017

WATCH PRICES: reshuffling the price cards

The very serious slowdown experienced by the Swiss watchmaking industry in 2016 had at least one positive effect – it provided a clearer view of things, revealed the strengths and weaknesses of all the players, prompted some self-examination and reshuffled the cards.
WATCH PRICES: price constellation
25 May 2017

WATCH PRICES: price constellation

The price issue is at the heart of the current watchmaking crisis. Pricing is indicative of a systemic crisis with numerous causes, the consequences of which are not yet fully clear.
WATCH PRICES: it's the fault of…
25 May 2017

WATCH PRICES: it’s the fault of…

It’s the fault of… It is true that any number of reasons of all kinds, a whole interwoven knot of reasons, have placed the watchmaking industry in a difficult situation (to say the least) at the start of 2017.
WATCH PRICES: an objective look
25 May 2017

WATCH PRICES: an objective look

Before we start analysing the current situation, let’s cast our eyes back. Because, although the watchmaking business is all about time, it often has a short memory. We only have to go back about fifteen years to find the source of the problems that the watchmaking industry is facing today.
WATCH PRICES: Denis Asch “I wanted to sell watches, not prices”
25 May 2017

WATCH PRICES: Denis Asch “I wanted to sell watches, not prices”

COMMENTS BY Denis Asch (Europa Star Arcade, November 2016), watch expert and former retailer who closed his shop rather than change profession.
WATCH PRICES: A price hike between 2000 and 2010, then the slump
25 May 2017

WATCH PRICES: A price hike between 2000 and 2010, then the slump

So how have prices evolved over the course of the past 15 years? To give an idea, the table below shows a few examples from the French market. The main finding is that between 2000 and 2010, all the brands raised their prices by a huge margin: an average 60% for all brands together. Then, between 2010 and 2015, the wind seems to have changed and strategies diverged. Certain brands pursued their policy of steady price rises, whiles others stayed put, or backpedalled and lowered their prices. All increases and decreases combined, the average price rose by 12.7% between 2010 and 2015.
WATCH PRICES: all China's fault?
25 May 2017

WATCH PRICES: all China’s fault?

We are not going to trot out the figures for China and Hong Kong, who are often accused of being the root cause of the current crisis. It is true that the Swiss watchmaking industry has become extremely Sino-dependent, and the political decision by one single man, Xi Jinping, and the change of gear by one regime have been enough to disrupt the entire ecosystem.
WATCH PRICES: “as soon as a price goes up, they look elsewhere”
25 May 2017

WATCH PRICES: “as soon as a price goes up, they look elsewhere”

With the democratisation of intercontinental travel prices and the opening up of China, which began sending ever greater streams of tourists all over the world, shopping tourism became crucial for the watch industry.
WATCH PRICES: The internet has changed the rules of distribution
25 May 2017

WATCH PRICES: The internet has changed the rules of distribution

The volatility in purchasing, which has become global and migratory depending on international prices, is posing serious problems for the brands, distributors and retailers as regards stocks, price adaptation, logistics, distribution channels and communications, to cite just some examples. And these are exacerbated by the growth of internet price comparison sites and mobile apps for mobile customers.
WATCH PRICES: to raise or lower prices?
25 May 2017

WATCH PRICES: to raise or lower prices?

In the face of all this uncertainty, the ongoing paradigm shift, the burden of excess stock and industrial overproduction, what strategies are open to the brands? And the sixty-four-thousand-dollar question: should prices be raised or lowered? Every brand has or will have its own response, some better suited than others to the realities of a market in motion. And the responses vary depending on where the brands are situated on the social hierarchy scale.
WATCH PRICES: a paradigm shift for distribution
25 May 2017

WATCH PRICES: a paradigm shift for distribution

Wildly fluctuating exchange rates, the price slump, volatile customers, accumulating stocks, discount, competition from smartwatches, the grey market, the internet, brands’ own boutiques… Stop! For retailers the world over, the cup is full. Distribution is at a crossroads, with crucial choices ahead: which direction should they choose?
25 May 2017

WATCH PRICES: “Retailers need to turn into gallery owners”

“Retailers need to turn into gallery owners” François-Xavier Mousin and Caroline Buechler, Opus Magnum, set out this “revolutionary” concept.
“THE WATCH INDUSTRY WENT TOO FAR”
25 May 2017

“THE WATCH INDUSTRY WENT TOO FAR”

Patek Philippe is a reference, a virtually inviolable icon of Swiss watchmaking. How did this family firm, one of the last, get through the annus horribilis that was 2016? What are the secrets – if there are any – of its resilience?
PARAPHERNALIA - VIANNEY HALTER: the big kid
24 May 2017

PARAPHERNALIA - VIANNEY HALTER: the big kid

Paraphernalia most commonly refers to a group of apparatus, equipment, or furnishing used for a particular activity. For example, an avid watch fan may cover his walls with horological paraphernalia, such as giant posters of Philippe Dufour, or sleep tight next to his Rolex Daytona 6239 Paul Newman.

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