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- Charles & Georges Brunet, ZRC fourth generation
1. For us, 2016 looks like being a good year. In fact, with the value of the Euro having dropped against
the US$ our exports to the USA are by far the best
for 10 years. We’re otherwise in full development
phase with our GF300 watch, which already promises
to be a great commercial, aesthetic and technical
success. Finally the reorganisation of our clients into
central purchasing groups helps us to strengthen
our partnerships and thus increase our dealings with
the larger accounts. The only flat-spot is the growth
of the yuan and the HK$ which penalise our Far East purchases and consequently reduce our margins
somewhat. In part, foreign currency exchanges help
us compensate for this phenomenon without always
negating it completely. I think that 2016 will see an
increase in our export turnover as well as our relative
position in France.
2. An absolute must is the consolidation of the
internal French market, which currently represents
70% of our turnover. With an ever diminishing cake, the slices are costing more and more and it’s imperative
we defend our position. The systematic market
stimulation through “Push Marketing” schemes has become an absolute necessity in business-to- business to stand out from the opposition, but also
between evolving communication methods and others
we have the tools to take control. We developed
the B to B site in 2015 which accounted for 5% in
its launch year and our objective is to increase this
to 10% in 2016. Today this type of modernisation
is obligatory: access to accounting and sales data, online stock control, order tracking, delivery traceability, etc. Our watch bracelets are now marked
with a serial number which allows us to establish
when they were manufactured and this is a first in
the business. Pricing is a highly sensitive subject in
the current context. It’s best to keep an ear to the
market and above all don’t try to impose price undercutting
at the risk of rapid loss of standing.
3. I think that a man’s only real piece of jewellery is his watch. The return to basics and a more vintage style appears to me an inescapable and timeless fashion
trend. The great industrial food and drinks lobbies inundate us with new drinks, each one apparently more delicious than the last but we always persist in uncorking a good bottle of Bordeaux or Burgundy. For my part, mechanical watchmaking has a healthy future
ahead of it if it’s prepared to adapt well in design and look. Perhaps the smart-watch will remind the younger generation that it’s not “has-been” to wear a watch on their wrist and perhaps, in “growing up”, they’ll have developed the habit of wearing a watch to their own taste. Along with their purchasing power, this may well evolve to a point where they chose to
move on to a good automatic.
4. This year we won’t be directly involved in Baselworld, however we’ll be meeting up with more
than a few of our customers on site. The most important
thing for us is to consolidate our position but
above all to do so at our own pace. With the GF300
watch, we don’t yet have the capacity to open too
many markets in one swoop, taking into account
limited stocks and a fairly narrow collection. That
said, for us Baselworld remains unmissable.
EUROPA STAR’S FOUR QUESTIONS
1. What are your predictions for 2016? Do you think that exports will recover, or will the markets stagnate or continue to decline after the slump we saw in 2015? And what do you think were the reasons for the downturn in 2015?
2. What are your priorities for the coming year: consolidating your existing markets, actively exploring new markets (if so, which), rationalising / consolidating / expanding your distribution network, launching new products, PR initiatives, etc.?
3. Over the longer term, do you believe that mechanical watchmaking will gradually die out, hybridise, or continue to occupy its own exclusive niche? Do you see the advent of smartwatches as a potential threat, or an opportunity for growth and diversification?
4. What exactly do you hope to achieve from your participation in Baselworld 2016? Do you feel your presence at the fair is essential to your business, or are such forums less important now than they were in the past?