Moving away from the core position and adopting a new set of values ​​is often seen as the death knell for a brand. When watch industry veteran George Kern was named CEO of Breitling in 2017, the 140-year-old brand was revered but considered “dusty.” In an era where consumers were looking for ubiquity and sustainability, Breitling’s position as an aviation watch brand was out of sync. Kern took a bold step away from macho imagery and became a casual lifestyle brand that appealed to both men and women. The strategy worked. From a valuation of $900 million in 2017, it was valued at $4.5 billion when it was sold to Partners Group in 2023. Its India business posted a 40 percent jump in revenue last year, and the company plans to have at least 10 boutiques (up from three). ) in the next year or two.
How has the luxury consumer evolved?
First of all, more people have access to luxuries. This country is much more democratic than it was in the 1980s, the time of family brands. Today, especially after the pandemic, luxury is much more casual than it used to be. It’s much more outdoors, you want to live again, travel and enjoy life. Luxury is now mostly leisure time.
Luxury is simple. It should be authentic, assertive and organic. If it’s artificial, then it doesn’t work. Today, in 2024, we’re launching a digital quartz watch that’s not an Apple digital watch, but it’s a success because people love it, it’s part of our history, and it’s not a digital watch, a quartz with functions related to is a pilot . We are the only brand that does this. Most companies try to build a luxury brand with a checklist – a Hollywood star as a brand ambassador is a must, association with sports like Formula One, etc. It doesn’t work these days. You need a different mindset. Your brand should be fun and approachable. It must be pervasive, common and sustainable, only then will consumers accept you.
Earlier, luxury brands were consumed by people who had reached a certain position in life. Today, even the young generation is consuming luxury. How different is the Gen-Z luxury consumer?
The new generation is constantly consuming, which is great, but if you start finding your own identity, you will be more successful. You need to find your own identity, be more recognizable and reflect a certain style. Today you buy first a brand, then a design and then a technology, which is very different from 25 years ago when you first bought a movement, then a design and then a brand. You are an Armani or Versace girl. Branding has become much more important and this is the first element to work on. It should be, does my brand reflect my personality? The biggest challenge for a brand is to find its own personality or style and then attract the consumer. We found it. We don’t think about age groups or social categories, we think about lifestyles. Breitling has a certain lifestyle and if it matches what you like, you will buy it. It doesn’t matter the age group, we’re not into luxury, we’re in the sweet spot where brands like Rolex, Omega and that’s the broadest area where you have luxury and a lot of people can afford it.
During the pandemic, luxury brands were rushing to build their online strategy, now brands like yours are refocusing on expanding their store network. Is boutique culture back?
We had extremely strong quarantines for several weeks. In any economic crisis, what saves your business are boutiques. You have stock, service, environment, it’s a wholesale business. We are hard goods, not sneakers, of course the decision making process is done online, but you ask yourself where do I buy it. In our industry it is very retail. Studies show that people want a physical experience, watches are a tactile physical product, you want to touch it and see it on your arms.
About 60% of the luxury watch market does not have e-commerce. Buying a luxury watch is a big investment, consumers want to feel the product on their wrist. It’s a very different way to build a brand and create an image. The boutique is the ultimate place that tells you a story. It is like buying an expensive painting. You would never buy an expensive painting online. You walk into a gallery, look at the product, feel it and then invest.
How different is the Indian luxury market from the rest of the world?
There are local realities that you have to accept. India is quite different from China in terms of development and growth, but these are macro-economic differences. Indians as global customers are exactly the same as the French, English or Chinese, but the country is different. The context and economic development are different. We have sold to Indians in Dubai or London in the past, he is exactly like that. The country is different in terms of infrastructure, boutique, wholesale everything is different. The biggest difference between China and India in terms of luxury is infrastructure. Even Dubai is notable for its shopping malls and retail environment. You need infrastructure.
There was a time not too long ago when Indians bought luxury brands only when they traveled abroad, as the prices were significantly higher here. Even the brands avoided them. What is the difference now?
The pricing structure is currently the same. You can pay different prices, you need worldwide pricing, including tax. The free trade agreement allows us to invest more in this country. When you have 40% tax and you have to cut prices and you don’t make any margin, nobody wants to invest. When you have proper margins, you can invest and contribute to the growth of this country.
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