highlights


The role of the Internet in the strategy of watch brands

October 2006


Torn between tradition and modernism, today’s watch brands cannot ignore the growing role played by the Internet in the way consumers purchase a watch. Today, more than a billion people throughout the world are connected to the Internet. In most industrialized countries the trend is the same: the Internet touches more than 50 percent of the population, the percentage of high-speed connections is on the increase, as well as the amount of time spent online per day.
In addition, Internet is a source of information, expression and socialization for a growing number of users. With the arrival of blogs and social networks, these online communities can openly exchange views. The Web is no longer just a library source of stat-istical information, but is now an inexhaustible flow of conversation.

The growing impact of online word of mouth in the act of purchase.
Watch brands should not ignore these electronic conversations and the impact that they have on the choice of a watch. “Today’s consumers are inundated with information and it is no longer possible for them to assimilate everything,” explains Coralie Charriol, Vice Director of Charriol. “Word of mouth in the Internet communities, such as aSmallWorld.net, is an increasing source of influence when making a purchase,” continues this young woman, who is currently analyzing different ways to promote her brand through word of mouth.
Some brands are aware that it is inevitable that their products are going to be discussed on the Internet and that watch aficionados will not hesitate to analyze, compare, recommend or criticize their creations. Thierry Nataf, CEO of Zenith, has understood that a number of key opinion leaders express themselves on the Internet and that they can significantly influence the image of a brand. The President of Zenith explained the importance of taking the initiat-ive of going directly to the owners of these influential sites, such as ThePurists.com, and talking with them over a cup of coffee.
Blogs can give a brand and its management the opportunity to converse directly with its clients and answer their questions and criticisms rapidly, at the same time as controlling its image. In the same vein, Hublot has recently launched its own television station dedicated to its activities and exclusively available on the Internet.

The importance of search engine marketing
Websites are part of the array of communication tools that each brand has to possess. In addition to the investments linked to the updating of a Website, the importance of promoting and acquiring Web traffic is indispensable. Even if many brands have understood the advantages of search engine marketing or the purchase of key words in search engines such as Google, these activities remain globally in the minority for the moment.
The integration and the regular consultation of statistics concerning the visits to a Website are invaluable. Such statistics allow brands to measure the impact of the launch of a new product or advertising campaign on the general public. Watch brand managers are not always aware of the possibilities open to them from the Internet in this domain. Others, however, following the example of Thierry Nataf, have affirmed that the Internet is an integral part of how they manage their companies and that they check the frequentation and evolution of the visits to their site daily in order to have the ‘finger on the pulse’ to improve company strategy. According to certain sources, Nick Hayek regularly follows Internet management reports. A sign that times are changing, perhaps?

On the road to Internet sales
If a ‘click’ is more than ever likely to lead to a product, are the watch brands ready to take the opposite direction and sell their watches on the Internet?
The fear of the unknown and the risk of harming existing distribution channels invariably comes up as a reason for justifying the status quo. There are also diverging opinions as to the compatibility of the luxury industry to online sales. For the most conservative, the purchase of a luxury product can only take place in an environment where the consumer can use his/her five senses, in other words, in a boutique. Offering mainly a visual experience, they believe that online sales are a minor art, which could be a disservice to the brand. For others, on the other hand, the luxury industry should embrace current culture.
This quarrel seems somewhat pointless as no one excludes the fact that online sales could soon become a reality and that people are talking in the corridors and waiting to see which one of the market leaders will be the first to make the big step. So, who is going to go first?

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Source: Europa Star August-September 2006 Magazine Issue