ES: How is business?

Adelbert BÜtler, CEO, the Bucherer Group (Switzerland): Business is good. There are signs on the horizon for a slowdown, but business is very good. In watches, every segment is doing well.
Igor Afanaskin, Owner, U Klementina Jewelry Watches (Prague, Czech Republic): For the last few years, the interest in watches has been undoubtedly growing. These circumstances led us to a substantial enlargement of our watch assortment during 2006-2007.
Raymond Chong, Merchandising Controller for Luxury Hard Goods, Nuance-Watson (Hong Kong): Our watch business at Hong Kong International Airport was extraordinarily good in 2007. Customers are more willing to spend and there has been steady growth of People's Republic of China customers buying high priced watches.
Russ and Rob Caplan, Topper's Jewelers, (California, USA): Terrific! Over the last few years, our business has been experiencing very strong, steady growth. With the current business climate, we see ourselves still doing OK and hopefully still growing, but we expect the next few years to be even more challenging.
Terry Betteridge, Betteridge Jewelers (Connecticut, USA): Our business is up so far this year although the sales of the biggest, no profit stuff is down. Patek Philippe is the best selling line here and still off the charts. Rolex is resurgent with subtle additions that have been spot on to the customer and simpler better details on the iconic watch. We hope to use Basel to pass Tiffany in sales.
Bernard Metzger, Director General, Horlogerie-Bijouterie Guillard (Switzerland): Business is mixed at the start of this year because of the prevailing financial ambiguities but 2007 was our best year ever, thanks go to my staff.
Denis Boulle, Owner, de Boulle (Texas, USA): We had the best fourth quarter we have ever had as well as the best year we have ever had. January has started off good especially in the very high-end.
Melissa Oster, Oster Jewelers (Colorado, USA): Business is fantastic. 2007 was our best year ever and 2008 is off to a very strong start despite the negative outlook on the economy, we are very optimistic.
Steven Jay Tapper, Tapper's Diamonds and Fine Jewelry (Michigan, USA): This is going to be a very challenging year. We are optimistic that we can stay strong by using a combination of efforts to continue to grow our business.


ES: How has the economy impacted your store(s)?

Ray Grenon, Grenon's of Newport (Connecticut, USA): We get more business from overseas as the exchange rate is in their favour.
Russ and Rob Caplan: Along with everybody else in the luxury goods business, we are negatively impacted by our current nervous economy. We feel we talk to many more 'reluctant' consumers than we were talking to twelve months ago. While we are expecting business to be OK through the fall, we are not dramatically expanding our inventory in the short term.
Robin Levinson, Levinson Jewelers (Florida, USA): Fortunately for us and others with high-end customers, it is not as bad as it could be. Those customers still want to buy fine watches and jewellery and have been spending.
Melissa Oster: When we purchased for the store in 2006 it was based on America still having a middle class that freely purchased in the US$4,000 to US$15,000 range. Now we purchase with extremes in mind - below $2,000 and above US$10,000 and much higher.


ES: What is the strongest segment of the watch business?

Robin Levinson: It seems to be diamond pieces and complications, catering to the high-end customer.
Russ and Rob Caplan: Our strongest segment is the US$2,000 to US$5,000 range. Watches such as the Omega Planet Ocean, TAG Heuer Carrera, and diamond dial and bezel ladies TAG Heuer Link models are extremely popular. Our fastest growing segment of our watch business is in the US$4,000 to US$8,000 range.
Raymond Chong: Our business growth is quite balanced and has increased in every segment. Nevertheless, the strongest are the luxury and premium segments.
Melissa Oster: Right now our strongest segment in the watch business is limited production pieces and watches in the six-figure range. That also goes for diamonds. I can’t remember the last time we sold a one-carat diamond.
Steven Jay Tapper: We are looking to lock in limited pieces for our collectors, in addition to focusing on top current brands and strengthening the depth of those brands that inspire collectors.


ES: What is your best selling brand? Your best selling watch?

Igor Afanaskin: Despite the difficult current economic situation, TAG Heuer and Frederique Constant sell very well. In 2007, the absolute leader was TAG Heuer, with models like the Carrera and Aquaracer Lady.
Robin Levinson: We are doing awesome with the Bulgari brand and the Franck Muller Group. Of course, Panerai is selling great.
Bernard Metzger: In terms of volume, Ebel and in terms of value, Patek Philippe. Although this will be the last time for Patek Philippe as I recently lost the brand to a new local competitor.
Russ and Rob Caplan: TAG Heuer was our strongest brand last year, but Omega and Zenith sales have also been doing very well and are very important to us. One of our really interesting categories is our niche watch business. When you add together Anonimo, Ernst Benz, Doxa, and Ball, their combined inventory cost and sales equal a powerful brand.
Ray Grenon: Breitling and Cartier. The Cartier Ballon Bleu has been a huge hit.
Raymond Chong: Our best selling brands and watches are rather diverse such as Bulgari's Bulgari-Bulgari, Franck Muller's Master Square, IWC's Pilots, Longines' Master and Omega's Constellation.
Denis Boulle: The best selling brand is relative, in terms of units it is Rolex, in terms of dollars it is Patek Philippe. Our best selling watch is the Rolex Submariner, Patek Philippe complications are up there as well.
Melissa Oster: We have a few best selling brands that are leading the way so to single one out is difficult: Audemars Piguet, Parmigiani and Breguet. The Bell & Ross BR01, 02 and 03 watches right now are our best selling watches - we can’t get enough of them.


ES: What do you hope to accomplish at this year's watch shows (BaselWorld and SIHH)?

Raymond Chong: We will encourage brands to review their manufacturing capacity in order to fulfil consumer demands. Pricing will be another topic of discussion. The substantial price increase especially on precious watches may create a hindrance for sustainable growth in the long term. Last but not least, we will continue to look for new brands to further enrich and refresh our existing broad range of offers.
Russ and Rob Caplan: We go to the Swiss shows to secure product, keep and develop our relationships with various brands’ management, and scout new brands. By ordering in Basel, we can often secure higher quantities of limited edition and scarce product that we think will be big hits for the coming year. We are always looking for the next big thing, and often find great lines by walking around from booth to booth, and talking to other retailers. Networking is a huge deal and we virtually never have a conversation that doesn’t include 'What have you seen? What’s different? What looks good?'
Igor Afanaskin: “We look for trends and up-to-date developments. We work with brands to enlarge currently represented collections and to introduce new brands in our shop.”
Robin Levinson: I will be searching for trends. Also continuing to network and spend time with our vendors who have become business friends. We will be sharing news about our new location with our vendors. This year is our 25th anniversary so we thought an additional venture would be exciting for the next 25 years.
Bernard Metzger: Solid acquisitions and fair talks, rebuild partnerships on a personal basis and limit manufacturers' dictatorship as much as possible.
Steven Jay Tapper: We constantly are striving for improvement and innovation; we will search for product lines that create interest and excitement. One of our goals is to create a level of exclusivity in the products we carry.


ES: What is your opinion about SIHH's move to January in 2009?

Adelbert BÜtler: I deeply regret the situation with SIHH in 2009. I hope it's a one-year situation. For the watch industry to divide itself is a very bad thing. Our first goal must be that people come to Switzerland and people buy watches here. The overlap worked well. The small retailers will not come twice.
Raymond Chong: I am not in favour of having SIHH in January while BaselWorld remains in April. As an overseas buyer, it is more effective and efficient for me to make one trip than two.
Robin Levinson: I am not in favour of that. It's too early for me.
Denis Boulle: My personal opinion is that it will complicate the retailers' lives because now if you carry all the brands you will have to make two trips, not to mention January is a very hard time for retailers to travel. Many retailers will only make one trip.
Ray Grenon: Bad timing. It doesn't give retailers enough time to analyze the previous year and plan for the next one.
Melissa Oster: I think it's a really bad move. From a retailer’s perspective it is such an inconvenience to have SIHH in January. We will have just made it through the exhausting holiday season and must complete inventory. The last thing I want to think about is going to a show and January for retailers is the time to regroup and plan the year ahead. It is also an inconvenience from a travel perspective as we now have to plan two trips instead of one where we can ac-complish all of our buying at one show.
Steven Jay Tapper: Because we believe in trying new ideas, i.e. thinking out of the box, we are looking at this as OK. It’s a different approach – we’ll have to wait and see how the new plan plays out.


ES: How do you feel about the coming year?

Robin Levinson: What goes down has to go up. It will be challenging, but then business always is. Even when things are great, we are always faced with challenges. I feel encouraged. Walking around with doom and gloom will not bring positive energy to anything.
Bernard Metzger: I am mixed as the financial crises are far from over. All in all I am hopeful and in a fighting spirit.
Raymond Chong: We are optimistic in 2008 despite the potential economic slow-down in the United States and Europe as well as the recent natural disaster hit in China. For our stores, we plan to enhance the watch section during the year.
Denis Boulle: We feel very optimistic about the coming year but have set modest goals for the company’s growth in 2008.
Ray Grenon: There will be some challenges in the low to mid range segment but the better brands and retailers will survive. There have been too many brands in recent history anyway. Hopefully the slowing economy will help this taper off a bit.
Russ and Rob Caplan: We’re having a pretty good year so far and are hoping it will continue through the year. We just came from Zenith’s pre-Basel event in Dubai and are thrilled with their new collection. We’re hoping for a big surge with Omega’s tie in to the Olympics and the new James Bond movie in the fall, and we expect TAG Heuer’s Grand Carrera to be very important. Hopefully the other brands we carry will have great new collections and business will exceed our conservative expectations.
Melissa Oster: Despite the negative news regarding the economy, we feel very good about the coming year and feel that sales will continue to be strong in the higher end and the more affordable range.
Steven Jay Tapper: You are what you think, think positively and it will come. If we as business owners and managers are not fired up and passionate, how can we expect those that work for us to be that way?


Source: Europa Star April-May 2008 Magazine Issue