highlights


Accessible luxury: Gc celebrates 10 years

July 2008


Gc, a brand based in Switzerland and focusing on affordable luxury, is ten years old this year and is firmly entrenched as a member of the Swiss watch industry. Gc originally stood for Guess Collection and was designed to be the high-end collection for the Guess range.
“Gc is Swiss Made, using Swiss movements, and is Swiss assembled and inspected,” says Kim Anderson-Curry, Senior Vice President, Product and Marketing, Sequel AG (the umbrella brand in the Timex Group responsible for Guess and Gc). “Gc is designed to be accessible luxury with European design. We have 5,000 points of sale around the world, with 150 shop in shops, while Guess, on the other hand, has more than 20,000 points of sale around the world. Within a year, we hope to have 25 Gc boutiques.
“Guess is all about fashion, newness, sexiness and adventures,” Anderson-Curry continues. “We introduce between 300 - 400 new styles a year in Guess, without taking into consideration colour differentiations. Guess uses lifestyle images, where Gc is only the watch. The average price for Guess is 120 Euros, with the range from 75 – 300 Euros, and Guess is all quartz (though we will do a limited edition automatic in the fall every year). The average price point for Gc is 400 Euros, with a price range of 350 - 1700. The Gc range is mostly quartz with a limited number of automatic watches.”
The biggest venture for Gc now is to make a complete split from Guess. "Five years ago we went all Swiss Made with Gc and last year, Gc was in the top ten in units for watch exports from Switzerland,” says Cindy Livingston, President and CEO, Sequel AG. “Gc started out being ‘expensive Guess’. We needed steel product for the stores in Europe. So we created Guess Collection in steel with Japanese movements. Guess became more sophisticated, so in order to get Gc higher end, we went with a mission statement that Gc was accessible luxury, made in Switzerland, modern in style, excellent in quality. The other reason we started it was that we had sold millions of watches to Guess consumers that had grown up, so we wanted watches for them for the next step before luxury goods. Our customers want what luxury watches offer at a price they can afford. Trends in Guess come from fashion, while for Gc, they come from the luxury market.”
Even though Guess and Gc are produced by the same company, Gc no longer wants the end consumer to know this. Next year, in fact, the plan is to move the Gc BaselWorld booth completely away from Guess. “Our plan is to have a complete separation,” says Anderson-Curry. “That's why we moved our offices to Switzerland, so we could make the difference very clear. We have separated everything from Guess.”
The trade, however, needs to know the connection, not just with Guess, but also with the Timex Group. “The objective is to have the trade, and future partners, know,” says Hans-Kristian Hoejsgaard, CEO of the Timex Group. “The consumer does not need to know that Guess and Gc are part of the same company. These brands need to stand on their own feet. From a trade perspective, when talking with retailers, we want to leverage the fact that we are one of the largest groups in the world. We want the trade world to know what the Timex group is all about.”


Gc

SE-2, SPORT CLASS XL


The watches
Here are some of the highlights from the Gc line:
The strongest watch in the Gc line is the SE-1, which retails at 600 Euros. The SE-1 features a strong design and is available in a smaller version, as well as an automatic version with an ETA movement.
The SE-2 is a rectangular version, retailing for 750 Euros, 650 Euros on a strap, and is water resistant to 100 metres. There is a limited edition SE-2 as well (automatic, carbon fibre dial, carbon fibre strap, 1,000 pieces in two versions), which retails for 1,500 Euros.
GC also offers the Diver Chic, which has a ceramic bracelet and ceramic bezel, and is water resistant to 100 metres, and the Sport Class, which is 530 Euros and features a black PVD case and carbon fibre dial (it also comes in a steel case for 400 Euros). The Precious Diver brings glamour and ‘bling’ into the Gc line.
“We want to get much stronger in diamonds, that is where we want to go,” Anderson-Curry says. “We have a very successful line in steel, and now we have it with a ceramic bezel and a ceramic bracelet.”
Gc is on a strong growth track, with lofty aspirations. “We make over 400,000 pieces of Gc watches a year,” Livingston says. “We have our sights set on being number five in the entire watch industry.”


Gc

PRECIOUS DIVER CHIC, SE-1


Distribution
Gc is distributed in 60 countries around the world, with France the number one country, Italy number two, and the United States number 15. “Licensed product has an issue in the US,” Anderson-Curry says. “Watch stores don't normally handle licensed product, so where is it sold? I am hoping that Gc, without the attachment to any license product and separate from Guess, will get into these independent retailers in the US.”
Gc uses distributors around the world, preferring to capitalize on the expertise of people in the market rather than trying to reinvent the wheel.


Gc


“In our business model, we use exclusive distributors in each country,” Anderson-Curry adds. “When we started, we picked the best distributors around the world who only had high-end product, so they treated us like a high-end brand. We got positioned with the right partners all around the world. The boutiques will give us a giant jump. The distributors are the ones building the boutiques, and often they have retail stores as well. They can get the retail space and they really believe in our concept.”
Gc is using a successful and tested formula – quality watches, strong design, Swiss Made, affordable prices – in a segment of the market that many companies are ignoring. Now, completely separate from Guess in the consumers’ eyes, Gc is poised to take the next step.


Gc


Source: Europa Star June-July 2008 Magazine Issue