Since the creation of the first watch in 1812, the Swiss watch industry has entered its 200th year. Last year, 29.8 million watches were exported from Switzerland to various places, the highest point since 1999; and The export value of 19.3 billion Swiss francs shows that 200 years of accumulation of Swiss watches can still achieve great commercial value in modern society.
From hundreds of dollars of Swatch plastic watches, entry-level Tissot watches that cost thousands of dollars, to custom models that cost tens of millions, Swiss clocks, a highly sought after perfume, have been in demand for almost ten years. Retail prices are rising. For most of them, however, the increase in price is much higher than the increase in value.
The deviation between value and price is precisely the crisis hidden in the rapid development of the Swiss watch industry under the monopoly background.
齐 Join hands to widen the price range
Yao Zhongwei, Vice President of Tissot China, admits: ‘In order to pursue the 10% difference in watches, people spend 10 times the price.’
Among the new products launched by various brands in this year’s Baselworld, people have seen the following star products tell the price and value of Swiss watches in their own way: The Blancpain Chinese calendar watch with a price of 660,000 yuan is the first based on China Traditional calendars show days of the day, limited to 20 pieces in platinum; Hublot BIG BANG high jewellery watch with a price of $ 5 million, with 1,282 square diamonds weighing more than 100 carats, has been sold within two days; limited Twenty Chanel floating camellia tourbillons, launched across the border with Audemars Piguet, have been included in the pockets of Chinese buyers; there is also the Movado Bold series, which ranges from 2,500 to 6,600 yuan, color Bright and attractive to young people at entry prices.
200-year value scale
‘The price is high and low, and the value is not expensive. The co-existence of low, medium and high-end watches has created the prosperity of the Swiss watch industry today, and has allowed the tradition and skills of two hundred years to pass on.’ Yao Zhongwei, vice president of China for the watch, said.
It is not difficult to find that each brand is widening its own price range. Some climb higher and higher, and others take a more personal route to win sales-from top to bottom, Swiss watchmakers do not let go of any corner of the market.
In 2011, progress has been made in all price bands, which shows that consumers have a strong interest in Swiss watches as a whole. Clocks with prices below 200 francs (export prices) largely affected this table, with an increase of 11.7% equivalent to 2.2 million. The price is between 200-500 francs, and the growth rate of both quantity and price is nearly 20%. Prices between 500-3000 francs increased by 14.9%. In terms of price, watches with a price higher than 3,000 francs have reached the highest growth rate, up to 21.8%, and contributed two-thirds of the total growth-that is, those who really drive the export of Swiss watches are those High-end watches.
200-year value scale
It is also a tool for displaying time on the wrist, and it is also Swiss Made (Swiss Made). The accuracy of the timing is almost the same. Why can the price difference be so huge?
In the words of Jean-Claude Biver, chairman of the Hublot board of directors of LVMH, the Swiss godfather of the watch industry: ‘Time is the least important function of watches.’
Yao Zhongwei, vice president of Tissot China, frankly said: ‘In order to pursue the 10% difference in watches, people spend 10 times the price.’
这些 In the showrooms of these Baselworld brands filled with numbers and orders, dealers saw business and profits; the media saw selling points and news; and experts saw value and heritage. As Kelly Wang, a visitor from China said, ‘Although overpriced is an unspoken rule for big Swiss watches, from another perspective, it is precisely because of the consumption of global customers, the continuous investment and expansion of large groups, the entire business The operation of the system makes it possible for these finest handicrafts to be passed on to future generations. ‘
不足 Insufficient production capacity leads to “limits”, hungry marketing surges in added value
宇 Hublot created by Jean-Claude Biver, the king of Swiss watch marketing, knows “Hunger Marketing”. “Meeting 80% of the market’s demand” is the golden ratio in the mind of Biver.
‘Never meet all the needs of the market’ is the rule that Swiss high-end watch brands keep in mind.
Breguet, Blancpain, and Jaquet Droz are the world’s largest watch groups: the top three brands under the Swatch Group. However, the annual average output of the three still adds up. Less than 50,000.
‘The supply of Breguet and Blancpain is particularly inadequate. We cannot meet more than 20% of the market demand.’ Said Marc A. Hayek, global president of these three brands. ‘Quantitatively, Things are better. ‘
The classic and luxurious appearance of the Prestige watch, coupled with the use of high-tech mechanical movement for more stable performance, has made this Swiss high-end watchmaking brand more and more popular in recent years. ‘The Breguet watch is really limited, because our production capacity is too limited. Unlike some brands, we only sell higher prices through the market means of labeling the limit.’ Ennzo Zhu, marketing manager of Breguet China ‘For example, our Queen of Naples series women’s watch, sold all in one place, last year was zero inventory. Especially in the Chinese market, all styles are very good.’ This series of crocodile strap models sold for 268,000 , K gold strap models sell for as much as 560,000.
However, such ‘hunger marketing’ is more like a result than an original intention.
In order to alleviate the shortage of production, Swatch Group has invested 13 million Swiss francs for capacity expansion. ‘Because high-end watchmaking relies on manual work, and most manual work cannot grow in batches like machines, watchmaker development and proficiency require time to develop.’ Marc A. Hayek said, ‘I think this is a beautiful problem.’
宇 The Hublot watch created by Jean-Claude Biver, the king of Swiss watch marketing, is well versed in ‘hungry marketing’. ‘Meeting 80% of the market demand’ is the golden ratio in the mind of Liver
Concept tables always make consumers willing to be the biggest temptation of ‘hunger marketing’. Because of its high development and production costs and overly complex processes, it is impossible for the concept table to achieve mass production and truly go to market. This also makes those watches that really have the value of being handed down, often staying in people’s desire and imagination. With this desire, many consumers have instead turned to mass-produced watches with the same name but low price.
Hublot launches a concept watch Master Piece (handed down) series every year, and it is now the fourth year. This ‘Antiquesila’ watch is inspired by the astronomical computer wreckage before 1900. ‘Since 2008, 50 million R & D has been spent, and Matthias Bullet, the former founder of B & B Concept, has created this concept watch with a team of more than 10 people.’ Huber China Marketing Manager Hu Ke revealed, ’20 We destroyed 16 movements, and finally completed only 4 watches, 3 of which were left to Athens, Paris, and Hublot’s own museums, and one was donated to the Archaeological Museum of Athens after auctioning. ‘Undeniable These 4 watches have earned Hublot many fans willing to pay for other watches under its brand. Coincidentally, Louis Vuitton, who is keen to launch a ‘concept watch’, has also introduced a concept tourbillon, magic watch and minute repeater.
‘The price of high-end watches is not high because of how many grams of gold and carats of diamonds it uses. The most important thing is that the manual time involved in it has created a high added value.’ Yao Zhongwei, an industry veteran, said. For the advertisement, and the pay for the watchmaker’s salary, Swiss labor is the most expensive in the world. If a watch requires him to make elaborately for ten months, then you also pay him ten months’ salary while buying the watch. ‘