Moving away from a central position and embracing a new set of values ​​is often seen as brand death. It was when the head of the watch industry, Georges Kern, took over as CEO of Breitling in 2017, the 140-year-old brand was respected, but considered “dusty”. At a time when consumers were looking for integration and durability, Breitling’s position as a masculine, aviator watch brand was not being synchronized. Kern took the bold step of moving away from the image of a man into a mainstream lifestyle that appealed to both men and women. The plan worked. From a valuation of 900 million dollars in 2017, it was valued at 4.5 billion dollars when it was sold to Partners Group in 2023. Its Indian business recorded a 40% jump in revenue last year and the company plans at least 10 boutiques (from 3 boutiques. ) in the next few years.
How has the luxury consumer evolved?
First, more and more people have access to luxuries. Much more democratic than it was in the 1980s was the era of family structures. Today, especially after the pandemic, luxury is more regulated than it was before. It’s more than that, you want to live again, travel and enjoy life. Luxury is more leisure now.
Luxury is simple. It should be reliable, reliable and should be organic. If it is artificial, then it does not work. Today, in 2024, we are launching a digital quartz watch, which is not a digital Apple watch, but it is a success because people love it, it is part of our history and it is not a digital watch, it is a quartz with functions related to driving. . We are the only way to do this. Many companies try to build a high-quality brand with a focus – a Hollywood star as a brand ambassador is a must-have, association with sports such as Formula-One etc. These days it doesn’t work. You need a different way of thinking. Your logo should be interesting and relatable. It should be inclusive, familiar and comfortable, then only the customers would accept you.
In the past, luxury brands were consumed by people who had achieved a certain status in life. Today, we even find the younger generation consuming luxury. How different is the Gen-Z luxury consumer?
The new generation is eating all the time which is good, but if you start getting your certificate you will be more successful. You need to find your own identity, be known and show some style. Today, you first buy the design, then the design and then the technology, which is very different from 25 years ago, when you first bought the movement, then the design and then the brand. You’re an Armani or a Versace girl. The brand has become very important and that is the first thing you should work on. It should be, does my name reflect my personality? The biggest challenge for a brand is to find its own character or style and then attract the customer. We got it. We don’t think in terms of age-groups or social groups, we think lifestyles. Breitling has a certain style and if it fits your needs you buy it. It doesn’t matter the age-groups. We are not in high luxury, we are in the sweet spot where brands like Rolex, Omega are, and this is the biggest place where you have luxury that most people buy.
During the pandemic, one has seen high-end brands quickly build their online system, now brands like yours are looking to expand their network of stores as well. Is the boutique trend back?
We had tight lids for a few weeks. In any economic crisis what saves your business is bots. You have a stock, a service, you have a community, it’s a business. We are hard goods, not sneakers, the choice is made online of course, but you ask yourself where do I buy it from. In our industry it sells a lot. Studies show people need physical experience, watches are a tangible product of the body, you want to touch it and see it on your hands.
Around 60% of the luxury watch market does not have ecommerce. Buying a luxury watch is a big investment, consumers want to feel the product on their wrist. It’s a very different way of building a brand and creating an image. The boutique is the last place that tells you the story. It’s like buying expensive paint. You will never buy expensive paint online. You would go into the gallery, look at the product, feel it and then pay.
How is the Indian luxury market different from other countries?
There is a local truth that you must accept. India is completely different from China in its growth, its growth, but these are the macro-economic differences. Indians as international consumers are very similar to the French, English or Chinese, but the world is different. It is a unique style and economic success. We have sold to Indians before in Dubai or London, he/she is very similar. The world is different in terms of buildings, boutiques, wholesale everything is different. The main difference between China and India is in luxury parlance buildings. Even Dubai is beating you in terms of shopping and shopping areas. You need infrastructure.
There was a wrong time not long ago when Indians bought high-end brands only when they went abroad, as the prices here were very high. Even the brands were shy. What is different now?
The pricing structure is the same now. You can buy a price difference, you need international prices, taxes included. A free trade agreement will allow us to invest more in this country. When you have a 40% tax rate and you have to reduce costs and you don’t make a margin, nobody wants to invest. When you have the right flowers, you can invest and help this world grow.
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