Dubai
The time hasn’t come for a smartwatch revolution to take hold… and traditional luxury watchmakers are just fine with that.
“I think of them as a smart instrument like your phone or computer and helps you keep in touch,” said Raynald Aeschlimann, President and CEO of Omega. “It was an interesting way of thinking of carrying information and how you can get at it.
“But a [luxury] watch is a totally different thing — it’s the spirit people are buying into. It’s not a storage place for information… but more like the ring you bought or some pens. They are full of emotions.
“And to me, a smartwatch is still an opportunity because some of the young guys will keep changing what they have on their wrist. And one day they will have a real watch.”
Nearly two years from the launch of the Apple Watch — which was supposed to be the moment when smartwatches were to upend the traditional watch business — things haven’t actually panned out that way. For the tech giants, smartwatches still represent a niche with their sales universe. And during this period, they have not turned out to be the must have lifestyle-work accessory everyone needed to have.
Some traditional watchmakers also came up with plans — and the odd model or two — to establish their credentials in the “smart” environment. But there is nothing to suggest that smartwatches are anywhere near to being dominant.
But was there ever a point in 2015 when Aeschlimann did feel threatened by what a smartwatch shift could do? “I am not often threatened — I was interested. As much as I am interested in anything that’s new in the luxury business. Only if you are not a dynamic company, you need feel threatened.”
But there have been other threats the Swiss watch industry has had to confront during this period. China’s crackdown on corruption meant sales of luxury timepieces was ticking along slowly, while another constant worry was the strength of the Swiss franc.
Early into the current year, the Omega CEO is still hopeful that the industry is on the cusp of a recovery. “At the global macro-economic level there were so many changes lately, that obviously makes it difficult to foresee what will happen,” Aeschlimann said. “For some months the situation of people travelling may not be what it used to be.
“But it can lead to better ways — I am positive on the evolution of the business. In all the capitals in the Middle East we have at least one Omega store. People still invest in watches.
“We have been creating a lot of stores lately — if I think about the US, we opened more than 30 in the last five years. It was not the booming years for the US as we used to know it in terms of business. But it was a sign that we wanted to implement our strategy — a successful strategy.
“And we are always optimistic. We have a presence in more than 30 countries... our own presence. Omega is the only watch group to have a full-fledged subsidiary in India and we see China being very positive lately. Owning an Omega ha been one of the first emotional shopping acts you do in China.”
There are other shifts that Omega — one of the crown jewels in the Swatch Group portfolio — is bringing on. Last month, it sold out a Limited Edition Speedmaster — all 2,012 pieces — in just over four hours exclusively through its online channels.
Was it a case of Omega trying to win over the millennials by showing up in the digital domains they prefer? “Sure, it was a way of getting to the people with links to the new technology,” the CEO said.
“The millennials are consuming, and they are much focussed on the story behind the brand as well as the brand image. If you think of the whole story of James Bond, it’s an aspirational brand. (Omega has a longstanding association with the Bond franchise.) “Our online sales push during last month’s “Super Tuesday” was not about adapting but to create a new chapter. It could be with ecommerce and not because others are doing it.”
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Getting through to the millennials
* Selling online is not the only way Omega wants to connect with a younger buyer base — it can always call in star power to impress them. There’s the brand’s association with the James Bond movies, and George Clooney is always on hand to light up billboards with an Omega in hand.
And for the younger set, Omega’s got Eddie Redmayne, the 35-year old with an best actor Oscar on his resume.
“The new testimonial with Eddie helps, and so does associating with golf, which is very attractive for the young,” said Raynald Aeschlimann. “It’s not about only getting one category of people and more about being loyal and true to our DNA of being a universal brand for everybody.
“We have to talk to people who are in their 20s. but not in opposition to the older one. Sometimes the message gets misunderstood to suggest a brand only wants one category. Some of the young are getting messages in other ways — that’s where we have to be active.”
