{"id":27231,"date":"2018-11-01T08:30:03","date_gmt":"2018-11-01T08:30:03","guid":{"rendered":"https:\/\/www.horbiter.com\/from-retail-to-certified-pre-owned-e-tail\/"},"modified":"2021-11-28T10:19:06","modified_gmt":"2021-11-28T10:19:06","slug":"from-retail-to-certified-pre-owned-the-watchbox-case","status":"publish","type":"post","link":"https:\/\/www.horbiter.com\/en\/from-retail-to-certified-pre-owned-the-watchbox-case\/","title":{"rendered":"From retail to certified pre-owned e-tail"},"content":{"rendered":"<p style=\"text-align: justify;\">The Swiss watchmaking sector is undergoing a major transformation; retail is under the loupe, albeit in a different way between Europe and the rest of the world, fairs are gradually losing their importance, especially <strong>Baselworld<\/strong>, after the <strong>Swatch Group<\/strong> decided to abandon the fair\u2019s\u00a0buildings located in <strong>Messeplatz<\/strong>.<\/p>\n<p style=\"text-align: justify;\"><img decoding=\"async\" style=\"width: 100%;\" title=\"baselworld-2017\" src=\"\/media\/CACHE\/images\/uploads\/baselworld-2017.0006c580a325.jpg\" alt=\"baselworld-2017\">The same thing is happening to the <strong>SIHH<\/strong> that can still count on the presence of the <strong>Richemont Group<\/strong> because it is in all respects their very own fair, but the exposition also has to count two important defections; those of <a href=\"https:\/\/www.horbiter.com\/en\/audemars-piguet\/\" target=\"_blank\" rel=\"noopener\"><span style=\"color: #0000ff;\"><strong>Audemars Piguet<\/strong><\/span><\/a> and <a href=\"https:\/\/www.horbiter.com\/en\/richard-mille\/\" target=\"_blank\" rel=\"noopener\"><span style=\"color: #0000ff;\"><strong>Richard Mille<\/strong><\/span><\/a> that will abandon the show from <strong>2020<\/strong>.<\/p>\n<h2 style=\"text-align: justify;\" id=\"figures-and-feelings-a-snapshot-of-the-market-according-to-vontobel-and-the-current-transformation-of-the-watch-market\">Figures and feelings; a snapshot of the market according to Vontobel and the current transformation of the watch market<\/h2>\n<p style=\"text-align: justify;\">What is currently happening? Let\u2019s try to explain it with figures. The latest report released by the <a href=\"https:\/\/www.vontobel.com\/en-int\/\" target=\"_blank\" rel=\"noopener\"><span style=\"color: #0000ff;\"><strong>Vontobel Bank<\/strong><\/span><\/a> that gives us the results of the luxury players, confirms that <strong>2017<\/strong> marked a trend inversion if compared to the poor results of <strong>2016<\/strong> and of the previous years. Year on year, volumes and margins are back to growth although, especially in the case of the latter ones, the record was reached in <strong>2013<\/strong> and has not yet been equaled since.<\/p>\n<p style=\"text-align: justify;\"><img decoding=\"async\" style=\"width: 100%;\" title=\"richard-mille-leaves-sihh-from-2020\" src=\"\/media\/CACHE\/images\/uploads\/richard-mille-leaves-sihh-from-2020.3d08d2bee1f3.jpg\" alt=\"richard-mille-leaves-sihh-from-2020\">The independent brands, many of which are family-run and are not even present on the stock exchange (<strong>Richard Mille<\/strong>, <strong>Franck Muller<\/strong>, and <strong>Audemars Piguet<\/strong>) have recorded double-digit growth. If for larger groups the volume\/value ratio is balanced, for the top-of-the-range smaller groups the ratio is decidedly unbalanced towards the unit value and their clientele base is more conspicuous in the rich emerging markets rather than in the consolidated and flat growing markets like the Euro zone.<\/p>\n<p style=\"text-align: justify;\"><img decoding=\"async\" style=\"width: 100%;\" title=\"patek-nautilus-perpatual-calendar-5740-1\" src=\"\/media\/CACHE\/images\/uploads\/patek-nautilus-perpatual-calendar-5740-1.b33e4bcd04ab.jpg\" alt=\"patek-nautilus-perpatual-calendar-5740-1\">What matters the most is that the market seems to have returned to a healthy growth (we will have to see how the year <strong>2018<\/strong> will eventually close), but the customer\u2019s behavior and business models in general are undergoing a transformation; retail sales are shrinking in favor of e-tail. This trend is quite evident from the strategic choices made by the larger groups that are currently buying or creating from scratch online platforms. The same can be said of the communication and management strategies aimed at the end customer that are moving from the traditional channels to more digital ones. <strong>Italy<\/strong> is still lagging behind because change is a concept that Italians accept very slowly; we are a people of traditionalists who struggle to abandon their own faiths.<\/p>\n<h2 style=\"text-align: justify;\" id=\"the-origins-eta-turns-off-the-taps-and-several-brands-seize-the-opportunity-to-position-themselves-to-a-higher-level\">The origins; ETA turns off the taps and several brands seize the opportunity to position themselves to a higher level<\/h2>\n<p style=\"text-align: justify;\">It is not possible to describe the history of the sector crisis in a few lines and to do so for such a complex sector would be a big mistake. It is however interesting to try and identify the drivers that led to the last ten years\u2019 change and there are some of these that, from the point of view of an external eyewitness, could be defined as \u2018<em>triggering<\/em>\u2019.<\/p>\n<p style=\"text-align: justify;\"><img decoding=\"async\" style=\"width: 100%;\" title=\"ETA-SA-logo\" src=\"\/media\/CACHE\/images\/uploads\/ETA-SA-logo.549d79e32cb6.jpg\" alt=\"ETA-SA-logo\">A clear example was <strong>ETA<\/strong>\u2019s decision to reduce its movements supply to brands outside its own group \u2013 this decision definitely shook the market that was only partially offset by <strong>Sellita\u00a0<\/strong>and <strong>Ronda<\/strong>. As a monopolist in the production of movements \u2013 <strong>ETA<\/strong> managed to save the Swiss watch-making industry during the quartz crisis, but it is now almost exclusively devoted to the growth of the <strong>Swatch Group<\/strong> brands \u2013 the manufacturer\u2019s choice forced many brands to design new mechanical calibers by forcing them to invest large assets in the process.<\/p>\n<p style=\"text-align: justify;\"><img decoding=\"async\" style=\"width: 100%;\" title=\"balance-spring\" src=\"\/media\/CACHE\/images\/uploads\/balance-spring.cfa110c30fb6.jpg\" alt=\"balance-spring\">Before the <strong>ETA<\/strong> effect, all the big luxury groups had already started competing towards a more ambitious price and volume positioning; it is a journey that started almost <strong>20 years ago<\/strong> and culminated in what I defined as the \u201c<em>mega<\/em>\u2013<em>budget season<\/em>\u201d with <strong>ETA<\/strong> being an additional driver of the whole process.\u00a0The culture that originated in <strong>MBA<\/strong> schools that was already successfully applied to other consumer goods sectors has joined the watch-making world by entering the door of the fashion luxury sector. Unfortunately, watchmaking is not like the food or detergents industry, it means the business logics applied to those sectors do not necessarily work once they\u2019re applied to the watchmaking industry.<\/p>\n<p style=\"text-align: justify;\"><img decoding=\"async\" style=\"width: 100%;\" title=\"ronda-calibers\" src=\"\/media\/CACHE\/images\/uploads\/ronda-calibers.da508a308345.jpg\" alt=\"ronda-calibers\">Increasingly large volumes, ambitious budgets, an increasingly rich bottom line and a product marketing tailored to the individual market have boosted the number of references and encouraged a rise in retail prices. Let\u2019s take two examples coming from two different luxury groups; let\u2019s compare the <strong>2008<\/strong> retail price of a <strong>Luminor Marina<\/strong> or of an <strong>Omega Speedmaster<\/strong> to the <strong>2018<\/strong> retail price. If it is true that in marketing the price of a product is measured according to how much a customer is willing to pay for that specific product, it is also true that the price growth is unfounded if you consider that, often, the technical features have not changed at all.<\/p>\n<h2 style=\"text-align: justify;\" id=\"the-gray-market-and-the-growth-of-the-pre-owned-certified-market\">The gray market and the growth of the pre-owned certified market<\/h2>\n<p style=\"text-align: justify;\">Let\u2019s pretend you had big volumes and references at your disposal that couldn\u2019t all be absorbed by the retail network, which is designed for specific geographic areas (meaning that it has a physiological growth limit) or by single-brand boutiques; wholesalers and the gray market have begun to spread widely and to increasingly absorb large product volumes that are sold without an official guarantee. As if we were talking about currency and inflation the \u201cworking capital\u201d of watches on the market has grown out of proportion, so much that companies like <strong>Authentic Watches<\/strong> and <strong>Luxury Bazaar <\/strong>have boomed, but they are only the tip of the iceberg of a bigger phenomenon.<\/p>\n<p style=\"text-align: justify;\"><img decoding=\"async\" style=\"width: 100%;\" title=\"vacheron-constantin\" src=\"\/media\/CACHE\/images\/uploads\/vacheron-constantin.791e4623a1b7.jpg\" alt=\"vacheron-constantin\">This huge mass of watches has invaded the market and diluted the image of exclusivity of Swiss watchmaking and fuelled an even larger market, the <strong>certified<\/strong> <strong>pre<\/strong>\u2013<strong>owned<\/strong> market. The two stores that I mentioned above sell new watches, and, in some cases, used timepieces too, but the real idea is not that of just saving on a new watch, but rather to handle everything else (like reselling a watch that represents a much more complex process and could offer various options).<\/p>\n<h2 style=\"text-align: justify;\" id=\"watchbox%e2%80%99s-case-history-danny-govberg%e2%80%99s-intuition\">WatchBox\u2019s case history: Danny Govberg\u2019s intuition<\/h2>\n<p style=\"text-align: justify;\"><span style=\"color: #0000ff;\"><strong>WatchBox<\/strong><\/span> was born from the vision of someone, who was born and raised as a <span style=\"color: #0000ff;\"><strong>major authorized retailer<\/strong><\/span> of the best Swiss brands, someone who understood before everybody else the importance and the growing weight of the certified pre-owned business and who has all the experience of a large authorized dealer of many of the most prestigious Swiss brands (he is also responsible for their after sales processes).<\/p>\n<p style=\"text-align: justify;\"><img decoding=\"async\" style=\"width: 100%;\" title=\"Danny-Govberg\" src=\"\/media\/CACHE\/images\/uploads\/Danny-Govberg.6b4e7bf6faec.jpg\" alt=\"Danny-Govberg\">He was the first person to understand the importance of managing all that lies behind a purchasing experience by using <strong>advanced<\/strong> <strong>customer service processes<\/strong> that, in some cases, are not even used during the sales process of new watches.<\/p>\n<p style=\"text-align: justify;\"><img decoding=\"async\" style=\"width: 100%;\" title=\"WatchBox-watches\" src=\"\/media\/CACHE\/images\/uploads\/WatchBox-watches.0dafd5d45dba.jpg\" alt=\"WatchBox-watches\">Ten years ago a <strong>Middle Manager<\/strong> could easily buy a new watch within the \u20ac <strong>4,000<\/strong> \u2013 \u20ac <strong>5,000<\/strong> range, but, today, watches within that price range cost about double the amount, thus automatically cutting off this category of people, who haven\u2019t proportionally increased their income, and making the certified pre-owned business a valid option for them (if not the only one available).\u00a0The same <strong>Middle Manager\u00a0<\/strong>could be willing to buy a <strong>perpetual calendar<\/strong>, but before doing that s\/he must get rid of two <strong>chronos<\/strong> and an <strong>automatic watch<\/strong> first.<\/p>\n<p style=\"text-align: justify;\"><strong><img decoding=\"async\" style=\"width: 100%;\" title=\"WatchBox-HQ-9trading-floor\" src=\"\/media\/CACHE\/images\/uploads\/WatchBox-HQ-9trading-floor.6f9f4e45deda.jpg\" alt=\"WatchBox-HQ-9trading-floor\">WatchBox<\/strong> is the answer to their need because it has managed to put together all the options that complement the sale of a new timepiece and are geared towards a lot of watch aficionados\u00a0that used to buy and sell on online markets, but this new business offers the advantage of a certified experience that is guided from the beginning to the end and is effortless (aka an \u201c<em>effortless<\/em> <em>experience<\/em>\u201c) within a sector where you are constantly afraid of being ripped-off.<\/p>\n<h2 style=\"text-align: justify;\" id=\"what-makes-watchbox-different-from-the-competition\">What makes WatchBox different from the competition?<\/h2>\n<p style=\"text-align: justify;\">The first advantage of a certified pre-owned company is that it accepts and offers a larger number of luxury brands; a service that no other brand can directly offer. <strong>Audemars Piguet<\/strong> offers a pre-owned evaluation service for instance\u00a0but, of course, it does so exclusively for <strong>AP<\/strong>\u2013<strong>branded<\/strong> watches. The adjective \u201c<em>certified<\/em>\u201d indicates a process that involves the evaluation of your watch and, when it comes to <strong>WatchBox<\/strong>, this evaluation process is very fast (I tested it personally about two months ago) and the company provides you with an immediate payment.<\/p>\n<p style=\"text-align: justify;\"><img decoding=\"async\" style=\"width: 100%;\" title=\"\/media\/CACHE\/images\/uploads\/WatchBox-HQ-18-tradingfloor.9de918b52973.jpg\" src=\"\/media\/CACHE\/images\/uploads\/WatchBox-HQ-18-tradingfloor.9de918b52973.jpg\" alt=\"WatchBox-HQ-18-tradingfloor\">The watches sold by <strong>WatchBox<\/strong> feature an <strong>official guarantee of 15 months<\/strong>, which means about <strong>25<\/strong>% <strong>more if compared to what the competition would offer<\/strong>, and the process also involves a rigorous inspection and refurbishment by a staff made up of expert and certified watch-makers that can work on any type of watch, even the most complicated ones.<\/p>\n<h2 style=\"text-align: justify;\" id=\"how-much-is-the-market-of-pre-owned-watches-worth-according-to-the-analysts-and-how-much-is-it-worth-according-to-watchbox%e2%80%99s-estimate\">How much is the market of pre-owned watches worth according to the analysts and how much is it worth according to WatchBox\u2019s estimate?<\/h2>\n<p style=\"text-align: justify;\">If you consider the sales volumes <strong>of the last 15 years<\/strong>,\u00a0<strong>WatchBox<\/strong> estimates that this market is worth <strong>500 billion dollars<\/strong>; that is to say <strong>100 times more than what the Swiss company Kepler Cheuvreux<\/strong> estimated. <strong>WatchBox<\/strong>\u2019s experts have come to this figure by including all the watches that lie, unused, in the drawers of big and small collectors all over the world and that represent a huge potential market. The company\u2019s business model is based on a <strong>multi<\/strong>\u2013<strong>channel<\/strong> <strong>approach<\/strong> that relies on the most advanced digital technologies, such as an extremely advanced <span style=\"color: #0000ff;\"><strong>App<\/strong><\/span> and an algorithm used to objectively evaluate your watch without leaving aside the value of human contact, as shown by the offer of a direct customer-retailer relationship.<\/p>\n<p style=\"text-align: justify;\"><img decoding=\"async\" style=\"width: 100%;\" title=\"watchbox-europe-headquarter-interior\" src=\"\/media\/CACHE\/images\/uploads\/watchbox-europe-headquarter-interior-EwLVGyB.91efb47848ee.JPG\" alt=\"watchbox-europe-headquarter-interior\">Could you ever picture a scenario where you can buy a complicated <strong>Patek<\/strong> without even having to talk to someone? It would be impossible. If you travel to <strong>Neuch\u00e2tel<\/strong> \u2013 where <a href=\"https:\/\/www.horbiter.com\/en\/watchbox-opens-its-european-headquarters\/\" target=\"_blank\" rel=\"noopener\"><span style=\"color: #0000ff;\"><strong>WatchBox<\/strong> <strong>opened its<\/strong> <strong>European headquarters<\/strong><\/span><\/a> \u2013 this experience has been taken to the next level; customer service activities (via telephone and email, <strong>also in<\/strong> <strong>Italian<\/strong>) are managed in the exact same place where you can trade-in your own watch face to face to an expert, while, in a separate room, a blogger is video-presenting all the features of a watch that has just been brought in as stock and that will soon join the online shop.<\/p>\n<p style=\"text-align: justify;\">(Photo credit: courtesy of WatchBox, Govberg. Horbiter\u00ae\u2019s proprietary photo-shooting)<\/p>\n<p style=\"text-align: right;\">Gaetano C @Horbiter\u00ae<\/p>\n<p style=\"text-align: right;\"><strong><a href=\"https:\/\/www.instagram.com\/gaetano_cimmino\/\" target=\"_blank\" rel=\"noopener\">Instagram \u2013 Gaetano Cimmino<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Swiss watchmaking sector is undergoing a major transformation; retail is under the loupe, albeit in a different way between Europe and the rest of the world, fairs are gradually losing their importance, especially Baselworld, after the Swatch Group decided to abandon the fair\u2019s\u00a0buildings located in Messeplatz. The same thing is happening to the SIHH [&#8230;]<\/p>\n<p><a class=\"btn btn-secondary understrap-read-more-link\" href=\"https:\/\/www.horbiter.com\/en\/from-retail-to-certified-pre-owned-the-watchbox-case\/\">Read More&#8230;<span class=\"screen-reader-text\"> from From retail to certified pre-owned e-tail<\/span><\/a><\/p>\n","protected":false},"author":2,"featured_media":14807,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[602],"tags":[],"class_list":["post-27231","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-buying-watches"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.1.1 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>WatchBox<\/title>\n<meta name=\"description\" content=\"The Swiss watchmaking sector is undergoing a major transformation; retail is under the loupe, albeit in a different way between Europe and the rest of the world, fairs are gradually losing their importance, especially Baselworld, after the Swatch Group decided to abandon its Messeplatz buildings.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.horbiter.com\/en\/from-retail-to-certified-pre-owned-the-watchbox-case\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"WatchBox\" \/>\n<meta property=\"og:description\" content=\"The Swiss watchmaking sector is undergoing a major transformation; retail is under the loupe, albeit in a different way between Europe and the rest of the world, fairs are gradually losing their importance, especially Baselworld, after the Swatch Group decided to abandon its Messeplatz buildings.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.horbiter.com\/en\/from-retail-to-certified-pre-owned-the-watchbox-case\/\" \/>\n<meta property=\"og:site_name\" content=\"Horbiter \u00e8 il magazine italiano sugli orologi di lusso. 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