In the realm of the independent watch brands, one company stands out—Raymond Weil. Created during the middle of the quartz crisis in 1976 by Raymond Weil, this family business is now run by his son-in-law, Olivier Bernheim, with two of his sons, Elie and Pierre Bernheim, occupying important positions. Unlike a number of more recent independent brands whose activities are concentrated in niches in the haut de gamme category, Raymond Weil has succeeded in capturing a central position at the core of the broad-based watchmaking offer. Present in 86 markets around the world, the brand often rubs elbows with competitors from the powerful groups.
Europa Star met with Olivier Bernheim to learn more about the strategies being put into place to meet the challenges caused by the current economic crisis.

Europa Star: How is your brand coping with the current economic crisis?
Olivier Bernheim: Reactivity, flexibility, innovation and anticipation are the major advantages of an independent and family-run company such as Raymond Weil during periods of economic downturns. It is also necessary to have excellent financial management so that you can continue to invest and advance.

ES: Which of your markets are most affected?
OB: The most affected is the United States (see release November 2), which is passing through one of the worst economic recessions in its history, as well as Spain, the Canary Islands, Iceland and the United Arab Emirates.




Olivier Bernheim, NOEMIA


ES: Confronted with this downturn, what strategies have you put into place regarding your products and their positioning?
OB: Thanks to intuition, Raymond Weil took steps more than 18 months ago and has thus considerably developed its product line-up around the ‘entry-level’ range—between 800 and 2,500 CHF. The arrival of the ladies’ collection Noemia as well as our new Tradition pieces, is the perfect illustration of advance planning that only a family business can undertake.

ES: What about your relationships with your subcontractors?
OB: We continue to have favoured and trusted relationships with our various sub-contractors. We have obviously been forced—as have all the other players in our industry—to reduce production in 2009, but we are hoping for a slight recovery in 2010. Our partners enormously appreciate the transparency, the proximity and the loyalty inherent in our family brand.

ES: And what about your distribution?
OB: Periods of deep economic crises are very difficult to traverse. They force us to question ourselves and to make strategic changes that are necessary for the survival and growth of the brand. This being the case, the relations with our retailers are strengthened. Trust is the basis of the relationships that we have with all our professional partners. It is reciprocal between Raymond Weil and the brand’s network. The brand has always regarded them as favoured partners. The bonds created with our distribution network are extremely solid and strengthened by the familial nature of our respective companies. So, during troubled times such as we are seeing now, we thus offer them major advantages—proximity, sincerity and reactivity.

ES: Have you thus reduced or resized your network?
OB: We have been working for many years with loyal partners who have largely contributed to the success of our brand. This magnificent adventure that was started more than 30 years ago continues today. It is constantly building and growing stronger to ensure the success of our company.




NABUCCO


ES: Has the crisis increased or decreased the power of the large groups in terms of distribution?
OB: It is hard for a brand such as ours to judge this. On the other hand, it is certainly possible to affirm that an independent company such as Raymond Weil offers a major alternative that is appreciated by retailers around the world. Retailers are suffering from a generalized pressure brought to bear by various players in the watch industry and they don’t appreciate this at all.

ES: You have opened a number of your own boutiques. What specific role do they play in the current situation?
OB: Everywhere our brand is strong, we want to be present via our own stores. Today, about 20 stores are a driving force in our distribution. The role of these boutiques is important in the sense that they allow our clientele to enter into the heart itself of the Raymond Weil universe and to receive personalized services.

ES: Can you strengthen this type of distribution even more?
OB: Another store was inaugurated in Dubai at the beginning of the year and we recently opened a new one in Sofia on September 16th.

ES: Has the economic crisis transformed your distribution (planned or current) via the Internet?
OB: It is important to evolve with the times and to take into consideration all new channels of distribution. Raymond Weil—a young, dynamic and trailblazing brand in terms of style—has always been very open to new channels of communication that allows it to establish direct links with its clientele. The creation of the RW Club, a platform for exchange between Raymond Weil and its loyal fans [Editor’s note: this was the first online club to be created by a luxury watch brand], and the presence of the brand on multiple social networking sites are an integral part of our online communication strategy.

ES: In your opinion, does this crisis mark some sort of rupture—sociological, aesthetic, stylistic, behavioural, ethical—with the preceding period of plenty?
OB: This economic crisis is very clearly marking a return to sure values and to products created with true savoir-faire. Raymond Weil anticipated this strong interest on the part of consumers and thus positioned its pieces at the heart of the traditional watchmaking segment.

ES: In other words, has the crisis had a major influence on the way you approach your business?
OB: Yes, certainly. This crisis—with no poss-ible comparison—has forced us to approach all new developments with more moderation, consultation and reflection.

ES: What are your expectations for the coming months?
OB: We would like to see the recovery, as small as it might be, be accompanied by more visibility in order to begin developments with total clarity.

ES: What do you expect to spend most of your resources on?
OB: We will concentrate them essentially in two areas: the innovative development of our products in order to offer our clientele watches imbued with true savoir-faire and a strengthening of the support we offer to our professional partners.


Source: Europa Star October-November 2009 Magazine Issue