WHAT’S NEXT?


Troverie: “All products sold on image are rapidly developing pre-owned”

WHAT’S NEXT WITH FRED LEVIN

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January 2020


Troverie: “All products sold on image are rapidly developing pre-owned”

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 Fred Levin, CEO of Troverie.

ENTRY-LEVEL
“Historical buyers vs. new connected owners” “Below $400, we will continue to see a rapid and consistent decline, outside of the connected segment. Beyond that, the situation should remain stable, as the decline of the historically older buyer should be balanced by connected watch owners who are dabbling in image-enhancing first Swiss watch purchases.”

POLARISATION
“Endless new players keep entering the industry”

“The polarisation is due to a combination of factors. First, with negligible barriers to enter the category, we will continue to see endless new players with new models – and few of these will have serious intentions, plans or resources. Second, sought-after models are driven by brand equity, product design and features, as well as marketing, shifting supply beyond natural demand. Third, in most companies, leaders are most concerned about being promoted or keeping their jobs: critical decisions are often made based on what is the safest path and not what is in the best interests of the brand. Finally, the global pricing system will continue to fuel polarisation.”

Fred Levin, CEO of Troverie
Fred Levin, CEO of Troverie

DISTRIBUTION
“Jewellers help build success over decades, not months”

“I believe that for the next 50 years, independent jewellers will continue to be an important element. Leading brands will have everything to say about this: the top 5 brands (with Rolex leading the way) represent well over half of the market by value and I see them recognising the cost-effectiveness of jewellers, for building sustainable businesses and brands over decades (and not months or years).”

"Critical decisions are often made based on what is the safest path and not what is in the best interests of the brand."

PRE-OWNED
“Disproportionate because of the nature of this product”

“Technology and global communications have created liquidity on the Swiss watch market to unlock the value of pre-owned goods. This development will continue to fuel the segment. All products that are sold on image are rapidly developing pre-owned categories. This has and will continue to impact the watch segments disproportionately because of the high value and high portability of the product.”