WATCH PRICES: it’s the fault of…


WATCH PRICES: it's the fault of…
Europa Star WorldWatchWeb, 25 May 2017    Español
Comments by Gérard Gouten, Distributor, Chairman of Manufacture Royale, Europa Star Arcade, November 2016

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.

When various reasons accumulate and you cannot put your finger on one single enemy (as it was possible to do during the quartz crisis, whether justified or not), it is a sign that we are on the brink of profound upheavals, structural transformations, social change. And behind it all is the burning question that everyone is asking themselves to a greater or lesser extent: have people fallen out of love with watches? And if so, how can we win back their hearts?

WATCH PRICES: it's the fault of…

It’s the fault of…

  • the state of the world economy
  • the transparency required of banks: no more under-the-counter buyers
  • disenchantment with watchmaking, especially on the part of women
  • long-term changes to world distribution channels
  • Chinese politics and tourists
  • e-commerce, digitisation, dematerialisation
  • management problems: after 35 years of plain sailing, nobody knows how to sail into the wind
  • rising prices and margins
  • overcapacit y by subcontractors
  • dwindling purchasing power in Western countries and the Middle East
  • a strong franc which has killed the Swiss domestic market
  • huge stocks in distribution
  • centralised decision-making, an obsession with control, loss of innovation, depersonalisation, emailed marketing plans, no genuine rallying of the markets, imperfect knowledge of buyers, top-down marketing instead of the other way round
  • lack of anticipation by the groups, which failed to foresee the structural changes currently taking place
  • the hegemony of groups
  • democratisation of luxury, which consequently is no longer rare
  • identical boutiques the world over

FEATURED IN THIS SPECIAL WATCH PRICES REPORT:

- The great upheaval
- 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”

Source: Europa Star TIME.BUSINESS/TIME.KEEPER Dec. 2016 - Jan. 2017



WATCH PRICES: the great upheaval
25 May 2017

Features - 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 (...)
WATCH PRICES: reshuffling the price cards
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Features - 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 (...)
WATCH PRICES: price constellation
25 May 2017

Features - 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 (...)
WATCH PRICES: an objective look
25 May 2017

Features - 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 (...)
WATCH PRICES: Denis Asch “I wanted to sell watches, not prices”
25 May 2017

Features - 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

Features - 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 (...)
WATCH PRICES: all China's fault?
25 May 2017

Features - 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 (...)
WATCH PRICES: “as soon as a price goes up, they look elsewhere”
25 May 2017

Features - 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 (...)

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