IWC keeps its eye on the ball
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Christophe Roulet
Editor-in-chief, HH Journal
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As Chief Executive Georges Kern explains in this interview, given at Watches&Wonders, held end September in Hong Kong, IWC keeps its eye firmly on its markets, particularly when these are constantly changing, as in Asia.
“We have an established presence in Asia like all the leading brands,” explained Georges Kern, Chief Executive of IWC, in Hong Kong for Watches&Wonders, the fine watch fair held end September. “The majority of our stores are located in China and more to the point in Hong Kong, where they are posting strong growth. Of course we still have countries to conquer and margin for optimisation. Above all, though, we must maintain a flexible approach as these markets never stay the same, whether this means changing consumer trends or new legislation.”
Georges Kern admits he didn’t immediately warm to the idea of a fair such as Watches&Wonders: “I have to say I was rather sceptical at first, but today I can only say how important this kind of contact with our distributors and end customers is, particularly as 40% of sales outside tourism come from this region. Asia doesn’t really have established retail sales structures, between brand’s own stores, multi-brand retailers, not to mention shopping centres and constant shifts in jurisdiction which makes this concentration of luxury a world of its own. Our aim is to keep our eye on the ball, meaning keep pace with changes in these markets.”
The need for training
Henceforth, IWC will share its new products between Geneva and Hong Kong, bearing in mind that the new releases shown in January at the Salon International de la Haute Horlogerie in Geneva are generally ready for delivery around autumn, when the brand will be able to focus on its Asian markets. “This doesn’t imply any change in strategy,” continued Georges Kern. “We are a global brand and our customers stay fundamentally the same. This is why we will continue to plan themes horizontally and relaunch a collection each year, along the same lines as the automotive segment. Alongside our “universal” classics such as the Portuguese, where we’re finding it hard to keep up with demand, this approach gives us a huge boost. Also, the loyalty of IWC fans to the brand contributes to progress in expanding markets. In other words, for any recognised brand such as ours, success in China also comes via Europe. But not only.”
“In Asia there is quite evidently a lack of luxury culture, and in a context such as this ‘exporting’ watchmakers isn’t enough to win the game. Qualified sales staff or marketing teams are inexistent, hence why we must recruit in segments such as hospitality or catering, then train these new staff and try and win their loyalty. Once again it’s about one-upmanship. Everyone takes what they want from everyone else. In this respect, it’s a far bigger playing field than in Europe or the United States. The entire process will take years.” A playing field where IWC intends keeping its ball bouncing.
