The Ceballos family has been in watches and jewellery for three generations. Located in Hermosillo, Mexico, which is south of Arizona, Daniel Ceballos Joyeros is now under the direction of Daniel Ceballos the third, carrying on the family tradition. One of Daniel’s main initiatives has been to increase the number of watch brands his store carries. Europa Star caught up with Daniel Ceballos in his store in Hermosillo.

Europa Star: How’s business?

Daniel Ceballos: As we say here in Mexico: “Business is good, thank God!” We have to pay our respects to the guy above, as we really can’t complain about business.

ES: What is the history of your store?

DC: My grandfather, Daniel Ceballos (the 1st) was the one who started in the jewellery business very humbly as a watch repairman. He had no money, but he was very honest and hard working; to me the key values to a successful jeweller. Being very skilful with his hands and committed to his work, and with time he raised enough money to open his own jewellery repair shop, and soon his own jewellery store (1956). His son Daniel Ceballos (the second, my father) started in his father’s business. The oldest of 11 brothers and sisters, my father moved to the capital of Sonora, Hermosillo in 1977, and by 1982 purchased the first and most respected jewellery store in Hermosillo, ‘La Violeta’ (founded in 1917) and renamed it ‘La Nueva Violeta’. This store, located in the heart of downtown Hermosillo, still stands as a symbol of trust and tradition. For many years the business grew, and my father, a very active man, was also very much in the wholesale business, supplying gold jewellery to many retailers across Mexico.
In 2006, my father was attending a Meteoritics convention in Berlin, Germany, and he suffered a fatal accident. My mother, Lourdes Ramirez, was always by my father’s side in the business, so she was able to take strong control of the business. Before I finished college, I had already started working at the store. As soon as I received my degree in finance, I started full time in the business. My vision was clear regarding where we had to go in this business — it was 2005 and the watch boom was ever rising. I knew that for the family business that had its foundations in trust and tradition, we needed to be identified as the leading retailer in watches and jewellery. Now, I work with my sister, Lourdes, in the business.

ES: Has business changed over the past years?

DC: Business has changed in that customers are more informed than before. They have more access to information and come more prepared than in the past, which means we have to have better knowledge of the products we carry and the products we sell against.

ES: What is the secret of your success?

DC: Our success has been based on building an experience that exceeds our customer’s expectation when visiting our store. Our formula for creating this experience is centred on two key factors:
1. Treating our customers as part of our extended family
2. Creating a luxury atmosphere
We have found that customers tell us time and time again that although our store is very high-end in terms of the brands, the ambience and interior design, there is something about our store that makes them feel very comfortable. Many of them mention that they have never felt the warmth and hominess that they get when visiting our store.

ES: What is your relationship like with other retailers?

DC: We have made some valuable friendships with several retailers from across Mexico through the various brand events. Most of the brands we carry have given us exclusivity for the territory we represent for them. This has permitted us retailers to talk openly and honestly about our concerns and experience with the different brands we all carry, without worrying about local competition.

ES: What is the biggest challenge facing your store right now?

DC: Unfair competition — competing retailers who discount heavily and non-author-ized dealers. Being an authorized dealer for high-end brands requires a great deal of investment in terms of brand furniture, publicity, as well as sales training. Discounting harms everyone.

ES: What is the biggest challenge facing the watch industry right now?

DC: A weak dollar and the copying of designs between different watch brands. Also misguided messages from certain brands in terms of manufacture authenticity or any other ‘self-developed’ claim that isn’t true. It is also going to be important for the industry to really focus on Swiss Made.

ES: How is your market different from others around the world?

DC: We find that the Latin American market in general is looking out for high quality products and the newest trends. Our market tends to be very inclined to receiving extra special treatment — they want to feel like VIPs, whether its special attention, special pricing or they get invited to an exclusive cocktail party.

ES: How do you market your store?

DC: We develop an annual marketing plan made up of:
Local monthly magazines, local newspapers, social and cultural events, charity events, billboards, website, Facebook and Twitter.

ES: How important is customer service?

DC: Many retailers are centred solely on making the sale. Customer service is very import-ant; it is the basis of the long term relationship with our customers. A person, who comes into your store in a hurry, only interested in a repair job, could become your best customer. When a customer is given the service he expects, or better yet if the quality of service exceeds his expectations, this builds customer loyalty. The opposite creates a negative domino effect so strong you might never get it back.

ES: How important is security?

DC: Security is at the top of our list. The point is to make the customer never realize security is an issue. A well guarded perimeter (inside and outside), a private area for making an important purchase or transaction, and a discrete staff are all factors that must be considered for a customer to feel secure.

ES: Are you optimistic about the future?

DC: Yes, always. The future is what we make of it. It is easy to make excuses, complain about how times are hard and lose hope for the future. The reality is that there is always room for opportunity. We must however have the flexibility to adapt to current situations, keep creativity at a maximum and to keep a keen eye open for new business possibilities.

ES: What is your favourite watch?

DC: My [Rolex GMT Master in stainless steel with blue and red, bezel circa 1991. Personally, I find it a very nice looking vintage watch. But more importantly, it holds great sentimental value for me as it belonged to my father, and after he passed away I received it as a graduation gift from my mother. This heirloom really impacts the way I look at watches. It gets me excited to talk about watches and convince our customers to start their own family tradition with a fine watch.

FACTS AND FIGURES:
How long: Since 1965
Employees: 10
Size of store: 320 square metres
Average sale: US$10,000
Range of price: US$200 and above
Best Selling Watch: Rolex GMT Master II in Stainless Steel
Brands Carried: Rolex, Cartier, Omega, Montblanc, Tudor, Chanel, Longines, Tissot , Damiani, Hearts on Fire, Roberto Coin, Chimento, Rebecca, Swarovski

SOLVING THE TRAINING DILEMMA WITH EUROPA STAR’S KNOWLEDGE
Daniel Ceballos Joyeros was the first retailer to take advantage of the Europa Star Knowledge training programme. Though Ceballos has training from the brands on a regular basis, he knew that he and his staff needed more.
“I wanted to fine-tune what I knew about watches,” he says. “Although I try to stay up to date and take part in the different training programmes my brands offer, it still wasn’t enough. I had been looking for a good watch programme that gave unbiased information, opinions and insight into the watch industry. The Europa Star Knowledge was just the programme to achieve this.
“The Europa Star Knowledge exceeded my expectations,” he continues. “It gave the entire scope of the industry today, and a look to where it’s going. It gave me the knowledge to be able to make an intelligent decision when considering investing in a new watch or brand.”
The Knowledge programme was held at the Grand Hotel les Bains in Yverdon-les-Bains, Switzerland before BaselWorld. In addition to training by the Europa Star staff, Ceballos also had a presentation from independent master watchmaker Thomas Prescher and visited the Montblanc Villeret manufacture.
“The Knowledge really opened my eyes to a great many things I had only a rough idea of,” Ceballos details. “It gave me key arguments to consider to be able to have a strong personal opinion of different watch oriented topics, and not be influenced just by what brands are promoting.
“I would absolutely recommend the Knowledge,” he adds. “It’s no secret that knowledge is the key to success. This programme really helps you gain an edge and makes you a true watch authority. With the acquired knowledge and skills, you will be able to better comprehend and take full advantage of future training programmes from the brands you carry.”
For information on the Knowledge, which is available either in Switzerland or in your store, please visit: www.europastar.com/the-knowledge

Source: Europa Star June - July 2011 Magazine Issue