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Richemont shakeup: impact on watch brands?

Riviera Paradise
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Interested to hear what forum members think about this. Seems a shame to move Jerome Lambert away from watchmaking. He did great work at JLC and Montblanc recently.

Are we going to see lower price points for high luxury brands, attempts to engage younger consumers?

http://www.ablogtowatch.com/richemont-abolishes-ceo-position-major-management-shakeup/

https://monochrome-watches.com/indu...tchmaking-montblancs-lambert-head-operations/


http://www.watch-insider.com/news/c...the-board-of-directors-and-senior-management/
 
U
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Riviera Paradise Riviera Paradise
Are we going to see lower price points for high luxury brands, attempts to engage younger consumers?

Richemont won't be able to lower prices enough to attract 20-somethings to mechanical watches. That demographic, in general, isn't interested in the product. Their Galaxy or iPhone can tell them the time. Now, if Richemont got into flat screen TVs and sports sedans they'd have to worry about that group.
 
Jwit
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U ulackfocus
Richemont won't be able to lower prices enough to attract 20-somethings to mechanical watches.

I guess I am an anomaly. 😝

However you are correct about the phone thing, @ulackfocus. A lot of people my age see watches as a useless expense because "who needs a watch when I have my phone?" And even the people my age that do like watches and maybe have multiple all go for the style. They are not concerned about the movement. It's all Daniel Wellington, Invicta, Guess, Michael Kors(I am guilty of this, but I have seen the light!), and so on.

Additionally the price points are a huge factor. Many 20 somethings are not making nearly enough to justify spending more than $100-200 on a watch. And my friends think I am beyond crazy for even considering spending much more than that on not only one watch, but multiple.
 
Taddyangle
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Plus, 20+ don't have high paying jobs. How are they going to afford a luxury watch? $15 an hour will get you a swatch watch.

And the few that could afford it (those that studied stem), only know about Rolex.
 
U
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Jwit Jwit
And my friends think I am beyond crazy for even considering spending much more than that on not only one watch, but multiple.

You are crazy. Just like the rest of us. Except we have more grey hair.
 
Taddyangle
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[QUOTE="Jwit, post: 575213, member: 24863]
And my friends think I am beyond crazy for even considering spending much more than that on not only one watch, but multiple.[/QUOTE]

Why do you think we wear Omega watches? 99.99% of the population has no idea what they cost. Strap on a Rolex, and it's a different story.

I will wear my Ed White, not a single person has a clue of the value. It's just some old watch.
 
Riviera Paradise
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All valid points gents...but I was thinking more 28-35 in terms of demographics. Still other points worth discussing...what underperforming brands might be sold off...brand repositioning..online sales etc. Cheers
 
meganfox17
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U ulackfocus
You are crazy. Just like the rest of us. Except we have more grey hair.

850ee49b0812ccbb4451181ee38b3811.jpg Actually you do look dashing Sir[emoji7]
 
U
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meganfox17 meganfox17
850ee49b0812ccbb4451181ee38b3811.jpg Actually you do look dashing Sir[emoji7]

You're so strange but we still love you around here. 😉 😜

ps - I wouldn't know how to care for all that hair anymore. 😵‍💫
 
Bushido
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It's been very interesting to read some of the various news outlets take on this "shake up."

The biggest possible major change, in my opinion, is their statement on "focusing towards digital marketing and e-commerce." I also read that there is no intention to apply major lay offs within any of the involved brands.

Personal Speculation: My own interpretation of those two statements put together and coupled with their need to increase market shares is offering online boutiques for purchasing. Perhaps pairing this with price reduction on a good number of the watch lines. This could both eliminate a good deal of overhead by doing away with a lot of the costs necessitated by brick and mortar stores while also putting out price points more competitive to the non WIS crowds.
 
meganfox17
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I'll tell this big Kahuna what I think 2a1d6cd8f0c8a8f9b930e1951e705254.jpg
●Montblanc should stick to fancy fountain pens
● I'd rather buy an Apple Smartwatch than a Cartier...so...Boo Hoo....!
● Sell off what's that Under the Richemont brand again ?..something that sounds like Parmesan cheese & Lee Van Cleef & Apples or Pears...
● Downsize your company & keep the prices down...everybody's got an inflated Ego here ! I love JLC but I cant bloody afford a JLC MUT perpetual [emoji41]
●Put some Apple Smartwatch tech into your watches , Dumbos.. Not every brand only the underperforming ones
●Send your CEOs to Japan for 6 mths for some lessons & insights in the art of watchmaking !

Ok I'm done [emoji136] Thank You @Riviera Paradise for having me !
 
U
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Not many women would take an iWatch over a Cartier.

JLC is still one of the best bargains in true in-house caliber Swiss watches despite how expensive they are.

ps - Parmigiana makes some interesting and strange watches.
 
mozartman
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IMO, a luxury brand with no down market presence will nearly always become stodgy and elitist, irrelevant to younger consumers, and eventually lose its cachet. Porsche, Mercedes and BMW certainly get that. Swatch gets that, and has taken first the quartz watch and then the automatic watch as far downmarket as it could possibly go. Richemont doesn't seem to want to do that, and is paying the price.
 
Riviera Paradise
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U ulackfocus
Not many women would take an iWatch over a Cartier.

JLC is still one of the best bargains in true in-house caliber Swiss watches despite how expensive they are.

ps - Parmigiana makes some interesting and strange watches.
I agree about JLC
 
Riviera Paradise
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mozartman mozartman
IMO, a luxury brand with no down market presence will nearly always become stodgy and elitist, irrelevant to younger consumers, and eventually lose its cachet. Porsche, Mercedes and BMW certainly get that. Swatch gets that, and has taken first the quartz watch and then the automatic watch as far downmarket as it could possibly go. Richemont doesn't seem to want to do that, and is paying the price.
I think the issue is not necessarily price but actual engagement...trying to reach beyond the traditional demographic interested in mechanical watches. I see the same issue in other luxury lifestyle brands such F1 racing which are not connecting with a wider audience.
 
STANDY
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Got enough problems with my own financials, with low interest rates from banks and crazy inflation on everything else ( except my wages ) to worry about luxury brands management issues 😉
 
Thomas P.
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STANDY STANDY
Got enough problems with my own financials, with low interest rates from banks and crazy inflation on everything else ( except my wages ) to worry about luxury brands management issues 😉
I think that's the problem with the whole luxury watch market now. Much fewer people can afford them now than in years past. Also doesn't help that the turn around service time is long and now there are Tourneau and other AD outlets where new watches are heavily discounted. This heavily discourages people including myself from buying new.
 
Larry S
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U ulackfocus
Not many women would take an iWatch over a Cartier.

JLC is still one of the best bargains in true in-house caliber Swiss watches despite how expensive they are.
.
Well said. I think JLC will be fine in the new market realities. Cartier also has solid watches at reachable price points.
 
GuiltyBoomerang
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Jwit Jwit
I guess I am an anomaly. 😝

However you are correct about the phone thing, @ulackfocus. A lot of people my age see watches as a useless expense because "who needs a watch when I have my phone?" It's all Daniel Wellington, Invicta, Guess, Michael Kors(I am guilty of this, but I have seen the light!), and so on.

Additionally the price points are a huge factor. Many 20 somethings are not making nearly enough to justify spending more than $100-200 on a watch.

Yet, I know friends who will go an get an Apple Watch, or a Samsung Gear, or a FitBit etc. And they can be upwards of that $200 range. I am in that same age category, and if anything, am trying to do my best not to buy cheaper watches on impulse. I do laugh a little inside every time I see others wearing DWs or MKs simply as a fashion statement...
 
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