Time To Tick

Minor Watch Brands Face Severe Threat  Under Financial Crisis

Some watch brands have to make some adjustments in marketing strategy. Some brands cut the sales points by 5% to 10%. The marketing promotion is not as aggressive as before. However, Longines Vice CEO who takes charge of Longines business and marketing in mainland China said that, when accepting an interview, the financial crisis did not affect Longines sales in China while it did great harm to its market in America. From Jan to May, Longines still enjoys increased sales compared with the same period of last year. Longines has not cut any sales points nor promotion budget in China since the financial crisis. On one hand, Longines has regarded China as the most important market since 2003, on the other hand, consumers become more prudent under financial crisis and tend to buy those cost-effective watches from traditional brands. Therefore, those new watch brand developed by some famous clothes brands or jewelry brands suffer greater impact. Some of them even close down.

Blancpain Tourbillon Diamants Watch

In near future, more independent brands, especially those minor brands, will go to the arms of big financial groups for better shelter. It is believed by many that big groups of diverse products and brands can better resist risks. The Swatch Group, for example, having an extensive brand line that covers high-end, mid-priced and low priced watches, can handle itself in all situations by shifting risks among products in different layers. According to the 2008 annual report of Swatch group, the profit only decease by 2.7%.

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Insight to the status quo of Watch Market and Chinese Impulse Buying-Ⅰ

Original Published in “Time To Tick“.
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Overall，global luxury goods, from automobile, yacht to jewelry and perfume，all may function as the symbol of success. However，in my humble opinion, luxury watches has distinctive elements that other luxury goods do not have.

To drink a bottle of Martell can not you are a man of achievements. How to make their special special seen after getting off Rolls-Royce is a quite a matter that many rich men care. If there is a well-recognized “status teller” to show yourself, it must be a wristwatch that can accompany with you all the day round. Nowadays, many luxury watches boost their history and luxury value but show a lack of unique characters.

The study shows that global luxuty watches shares four major points in common:

Firstly, they are rare living antiques. Normally, luxury watches hold a brand history of more than 100 years;

Secondly, they are symbolic objects for successful people. Luxury watches are highly exclusive that they can provide exact status proof for their wearers；

Thirdly， they are precious accessories； Women want jewelry to enhance their appearance while men need a luxury watch to show themselves. Of course, men could choose big rings. But it is a gentle style to show off in an excessive way. A wristwatch that subtly haunts at the cuff can properly send a noble touch.

Fourthly, they are personally collection. From views of craftsmanship, luxury watches hold extremely high quality. They normally are crafted from precious materials including gold, diamond and rare metals. Luxury watches thus become private collection on base of well-recognized brand culture. The interesting point is that most private collections are kept in private rooms while luxury watches show themselves on wrists.

However, from view of marketing, the above characteristics make those luxury watches more homogenized. Luxury goods consumers, on the other hand, want to buy something different based on the commons of luxury goods. So a question is presented before Luxury goods enterprises and markers: do you have any special values?

Obviously, a luxury watch brand will not lead the market if it fails to solve the problem of homogenization. Here, I just put forwards one solution: make a clear value orientation for the products. The said Special Value Project will be completed by three steps:
Step 1: discover value. A watch brand has to discover value elements from its brand history and watch-making culture.
Step 2 : value package. A  watch brand should polish the discovered value like jewelry, make a nice package for it and make it a unique value through clear orientation.
Step 3: stick to the value. A watch brand should build the special value in a long term and make constant advertisement.

I hold the opinion that the certain special value is the biggest selling point of luxury watches. For example, the value orientation of Piaget watch is “Jewelry Master” as it is good at turning watches into jewelry with its remarkable mastery of jewelry inlay. This change of commercial character bring a great rise for Piaget watch value. Vacheron Constantin sticks to its value orientation: rare artwork. It is recorded as the earliest – established watch brand with fewest output. “Rare” and “Precious” become its special value.

Still some luxury watch brands, including Girard-Perregaux, Frank Muller and IWC, have not build up clear value orientation. Considering from luxury goods marketing, most luxury goods customers buy the special value instead of the use value.

Original Published in “Time To Tick“.
All right reserved. Any reproduction or use by any other websites, media or individuals must be attached with a clear indication of “source: http://www.ebuy4cheaps.net/”