Major brands pulling out of wholesale relationships with retailers, or reducing the number of partners they work with, is creating opportunities for Swatch Group, officials said at their annual press conference held in Biel/Bienne last week.
WatchPro put a question to Swatch Group president Nick Hayek about whether the group’s market share is declining — Swiss watch exports rose by over 11% last year while Swatch Group’s sales increased by 2.5% — and whether this was leading retailers offering bigger and better spaces to rival brands when they are investing millions in refurbishments or new stores.
Mr Hayek first made the point that Swiss export figures, published monthly by the Federation of Swiss Watch Industry, are not the same as turnover figures as there can be a lag between when product is sold into a country and when it is sold to a consumer.
There are also different prices that might be paid by, for example, a sales agent and an affiliate in any country, he added.
“It is right that export numbers give you an indication, but you cannot just compare export numbers and our sales numbers,” Mr Hayek said.
Brands and retailers negotiating over space and positioning is nothing new, he added.
“It is consumers out there that count for us. As long as you are generating interest with consumers, and they want to have your products, then retailers will want your brands,” Mr Hayek said.
Marc Hayek, CEO of Breguet, suggested that there have rarely been more opportunities.
He said that competitors are pulling out of retail, and others are reducing the number of partner stores they work with.
As a result, “We do not have problems at all finding space with retailers,” he said.
Richemont has been verticalising its distribution in recent years, with brands opening more of their own monobrand boutiques and ramping up direct to consumer ecommerce.
Patek Philippe is reducing its worldwide number of doors by around 30%, the brand revealed exclusively to WatchPro last week.
