Swiss watchmaker Omega defies e-commerce boom by expanding physical stores network in China
- Luxury shopping is about experiencing a build-up of emotions and being able to touch the product in a physical shop, says CEO Raynald Aeschlimann
At a time most retailers are turning to digital channels to stay competitive, one Swiss luxury watchmaker is doing things differently.
Omega is sticking with good old-fashioned physical shops to underpin its expansion in China even as e-commerce takes the industry by storm.
“Sometimes [luxury shopping] is about waiting and longing for the product and experiencing the build-up of emotions as you personally visit the store and touch the product itself,” said Raynald Aeschlimann, president and CEO of Omega, in an interview with the South China Morning Post.
“E-commerce shouldn’t be taken as a way to replace anything, it should be complementary. While we are working on some [digital] strategies, we’re still very much investing a lot in bricks-and-mortar stores in the main cities in China.”
The brand currently does not have an official Chinese platform for consumers to shop online, nor are they collaborating with any third party e-commerce platforms in the country. Consumers can only shop for Omega’s products online via the brand’s official US website.
Aeschlimann said the physical shops are strongly tied to emotions and experience. It is important to strike a good balance between online and offline channels, in order to meet different consumers’ demand.
Smart watches are just not to be compared with real watches
Omega has almost 200 points of sales and 30 shops in more than 90 cities across China.
Aeschlimann is unfazed by the rising popularity of smart watches, seen by many in the industry as a threat to traditional timepieces, particularly with the younger generation.
“Smart watches are just not to be compared with real watches. In fact, I don’t call them watches, instead I refer to them as smart instruments – it’s almost like having a small smart phone on your wrist.
“Traditional watches are the ones that have a soul and are intertwined with memories. After a couple of years, these electronic accessories are worth nothing and they are nothing but a relay to your phone.”
International watchmakers continue to lead in the Chinese market, with Patek Philippe and Cartier holding 16 per cent and 12 per cent market share respectively.
In the 11 months to the end of November, the value of Swiss watch exports was up 7.1 per cent from the previous period at 19.54 billion Swiss francs (US$19.9 billion), according to the Federation of the Swiss Watch Industry FH.
Hong Kong, was the biggest export market for Swiss timepieces, up 21 per cent. The US and mainland China, the second and third biggest, rose 8 per cent and 14 per cent respectively.
