#Resilience


“The high-end segment cannot exist without the rest of the industry”

ANDREAS LEIBUNDGUT

Español
December 2019


“The high-end segment cannot exist without the rest of the industry”

In our latest report about the transformation of the watch world, we selected six major issues which are having a profound impact on the industry’s present and also on its future and discussed them with about forty stakeholders of the industry. Here is the take of Andreas Leibundgut, CEO of Delma.

POLARISATION
“Many brands are actually more relevant than ever”

“I don’t share this analysis. Over the past years, a lot of brands have experienced substantial growth and have developed greatly to the point that I think they are more relevant in today’s market than they have ever been, both in the high-end and more affordable price segments!”

DISTRIBUTION
“Fewer, stronger partnerships”

“E-commerce and direct-to-consumer sales will continue to grow as consumers and especially the brands get more comfortable with it. With the growth of these channels, the retail space occupied by brands will be more selective, especially for bigger brands with their own boutiques. Traditional retailers will seek to differentiate themselves with the brands they carry and the experience they offer their customers. Brands and retailers will value fewer, stronger partnerships.”

Andreas Leibundgut, CEO Delma
Andreas Leibundgut, CEO Delma

PRE-OWNED
“A new piece of the pie for retailers and brands”

“It is a reasonable next step. It is a growing segment within the watch market and neither the brands nor the traditional retailers have previously had a piece of that pie. Thus, I think it’s only logical that brands move in as they like to exercise control over that market and gain access to the consumers they have missed out on so far, while the traditional retailers want to stay relevant with these consumers and want a piece of that growing pie too.”

"Traditional retailers will seek to differentiate themselves with the brands they carry and the experience they offer their customers. Brands and retailers will value fewer, stronger partnerships.”

OPPORTUNITIES
“China is saturated”

“The pool of people interested in Swiss watches will not grow endlessly. But there is still great potential ahead in several markets, although not as big as the Chinese market. At the same time, China has been moving from a growth market to a saturated one and as such it will become even more important for brands in China to differentiate, clearly position themselves and engage with consumers.”

HIGH-END
“There will always be a demand for all segments”

“The high-end, mid-tier and low-end propositions have always co-existed and will in my opinion continue to co-exist. I do not think that one can exist without the other. One feeds the other and there will always be a demand for higher-end, more exclusive and exquisite timepieces, just as there will be demand for lower priced watches. The question is rather what defines these segments and the products that are active in it. What do the consumers desire from products in these different segments and where do we, as a brand, want to operate in the future?”