Why Do Major Watch Manufacturers Invest In Electricity Suppliers?

According to the world clothing and shoe net, high-end watch manufacturers have been skeptical about whether consumers are willing to pay thousands of dollars to buy watches on the Internet.

But now,

Online sales are booming, and the concerns of high-end watch manufacturers are gradually being eliminated.

Investment in electricity supplier business.

Not long ago, in January,

The parent company of Switzerland, the Swiss luxury goods group, offered a comprehensive offer to the world's largest luxury goods supplier, Yoox Net-a-porter Group SpA, to buy the remaining 51% stake in YNAP with a bid of about 2 billion 770 million euros, reaching a full control of the latter.

Mr. Li said he hoped to strengthen the group's competitiveness in digital channels through this paction.

The Swiss independent watchmaker Breitling (Oris) and Oris, which are privately owned by CVC and RJ, have also confirmed plans to expand their online businesses.

Many other tabulating operators also started a trial of e-commerce business with a multi brand online retailer.

Consumer groups are becoming younger and younger, electricity providers are the necessary means.

Prior to the 2017 global luxury industry research report released by the Italy luxury trade association Altagamma (sixteenth edition), Bain consulting predicts that by 2025, luxury online sales will account for 1/4 of total sales, much higher than last year's close to 9% share.

The report also mentions that the millennial generation now accounts for about 1/3 of the total number of luxury consumers, and that the proportion of younger Z generation is increasing.

Driven by the fact that young consumers are more inclined to online shopping, luxury brands have joined the trend of e-commerce in order to attract more young consumers.

"We didn't realize how high the millennial Internet watches and cars would be before," said Jean-Claude Biver, head of watch business department of LVMH group, in an interview with Baselworld watch trade fair in Basel.

Biver revealed that the group's Swiss watch brand Tag Heuer (tiger Heuer) will strive to build its own e-commerce website in the next 18 months.

At present, Tag Heuer has established online stores in 5 countries, including the United States and the United Kingdom, and has established a cooperative relationship with China's e-commerce platform Jingdong.

LVMH group's two other watch brands, Hublot and Zenith, have not acted in electricity providers.

As many websites run by non official distributors surged, watchmakers should also take good care of their brand image while choosing to expand their business.

CEO Jerome Biard, a high-end Swiss tabulation brand Corum (Kunlun table), said: "we hope that consumers can safely shop online."

Corum Watch is part of the Citychamp Watch & Jewellery Group Limited, which will also be fully operational in the first two months.

Especially prosperous Chinese electricity supplier market

According to the research report released by AC Nielsen, an international famous market research firm, "the trend of Chinese consumers in the digital age and the way of winning brands": China's Internet users are as large as 7.5 billion billion, and spend 26.5 hours per week on average on the Internet. In 2017, Internet sales increased by 28% over the same period last year.

A recent survey by Boston Consulting Group (Boston consulting) showed that over half of consumers purchased high-end clothing and accessories online through mobile phones, up to 75% among young consumers, compared with 77% in the Chinese market.

Last year, the Chinese market has replaced the US as the main source of online sales of luxury watches, according to DLG, a consultancy.

The limitations of luxury watch online business

Although more and more watch manufacturers are beginning to test the water business, there are still some brands who hesitate in the business of e-commerce.

French classic luxury brand Chanel now sells perfume, glasses and beauty products online, avoiding clothing, handbags and watch business.

Previously, the brand fashion President Bruno Pavlovsky said that "if you put all products on line and face all consumers, the brand will lose its uniqueness."

But this does not mean that Chanel will always refuse to sell online, and we will launch the online business of handbags and clothes at the time of maturity to add additional value. "

For high-end watchmakers to enter the field of electric business, LVMH group's luxury jewelry and watchmaker Bvlgari (Bulgari) CEO Jean-Christophe Babin believes that luxury watch online business still has some limitations: "some watch repair business still needs customers to come to the store in Italy.

The company expects the online sale of watches to be priced at between 30 thousand ~4 euros.

Bvlgari has opened an e-commerce website in the US, China, Japan and the United Kingdom, and plans to expand its e-commerce network to all parts of Europe by the end of the year, expanding to Australia in early 2019.

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