Is this a trend with Omega boutiques

[baldyspoon]

Was talking to a shop assistant who was telling me how that now his shop has been turned into a boutique sales on Omegas are down as they can no longer give discounts, and they are selling more of other brands the can discount on. Also said he has had people look at the new PO's that are £5000+ and they have said thats Rolex terriotry and gone to a Rolex dealer and bought from there instead great for Rolex not for Omega, do you think is trend we will see until Omega allow discounts.

[snog]

how can "his" shop turn into a boutique? a boutique only sells Omegas I thought?

The answer though is not discounts but setting the right price in the first place.

[Dweller of the Sea]

Why would a boutique owner talk badly about the only brand he sells......

[baldyspoon]

His shop has a boutique within it, Omega are doing this with some jewellers that were selling Omega alongside other watches. Then they put in a boutique within the shop away from the other brands.

[baldyspoon]

It's not the only brand he sells as the boutique is within his shop along with other brands, the reason the Omega sales have fallen in his opinion is the lack of being able to give discounts like he could before.

[capote]

The boutique road is a high stakes gamble on Omega's part. They are obviously doing it to compete with Rolex but as long as people prefer Rolex to Omega for the same kind of money its going to be tough for them to succeed in their strategy. I'm all for it though, it will put pressure on Rolex to make better watches as well. In the end the customers will benefit.

[SUPERDOC]

I agree that this model is a gamble for Omega - but I don't think for a second that its not something that has been calculated...

I think that we are thinking on a small scale, and looking at small vendors that may or may not represent the majority...

Bottom line - if Omega wins in Asia - nothing else matters -


And if they want to keep prices regulated and keep their best customers happy - then they have to be rigid about prices elsewhere, or else the asian dealers will see their business go stateside or internet or elsewise...

I'm sure that if shops like your friends suffer, Omega may well consider it collateral damage...

The current line seems overpriced because of what our expectations have become - lower starting MSRP, and a discount on top...

Once the new generations take over, and the idea of Omega discount is not contemplated, it will seem like business as usual...

[witch watch]

[QUOTE=SUPERDOC;3309347]

Bottom line - if Omega wins in Asia - nothing else matters -
QUOTE]

Disagree with this. You really think that Omega are going to bet all they have on Asia? No way! I DO agree however that in the short term it will work out for them SHOULD they exceed their goals in Asia but for me if the 'Up&comers' if you will in Asia see that The Westerners that they aspire to be like are favouring Rolex, they will to.

[SUPERDOC]

[QUOTE=witch watch;3309391
Disagree with this. You really think that Omega are going to bet all they have on Asia? No way! I DO agree however that in the short term it will work out for them SHOULD they exceed their goals in Asia but for me if the 'Up&comers' if you will in Asia see that The Westerners that they aspire to be like are favouring Rolex, they will to.[/QUOTE]

Ok - I'll concede that my statement was bit too basic and generalized..
But I still think that the much larger markets are the Omega targets...

Likewise Rolex - we get upset abou the price increases, but trust me - the luxury Brands don't care if they outprice a few consumers, as long as the whales continue to buy...

As far as Asians aspiring to be like Westerners....have you seen the average Westerner these days?...doubtful that this is the epitome of success in the minds of many.

[manuu]

Originally Posted by witch watch

if the 'Up&comers' if you will in Asia see that The Westerners that they aspire to be like are favouring Rolex, they will to.

aspire to be like westerners ? Kinda presumptuous ... don't you think?

I don't think you have been to the east much. The way they hold on to traditions there, you'd see that westerners are the last thing they aspire to be like.

[Cru Jones]

Originally Posted by Dweller of the Sea

Why would a boutique owner talk badly about the only brand he sells......

[MatthewInSeattle]

Omega HAS been pulling out of a lot of stores in larger markets and opening MANUFACTURER-OWNED boutiques. It happened here in Seattle, and at last count there's now 23-ish Omega boutiques in the US. They're all owned by SwatchGroup. They don't discount, but they have almost the full line and can bring watches in quickly from anywhere in the country in a few days.

As far as shop-in-shops, I don't recall hearing a whole lot about those. I know they wanted more space in multi-brand stores, but I've not heard of any specific examples of shop-in-shops.

It's a trend as manufacturers are stepping in and trying to discourage retailers from discounting product. From their perspective it hurts the brand image, we all know that.

It's certainly true that Omega prices have increased dramatically in the past few years. The PO that was $3900 in 2010 is (upgraded, but still) $6200 now. Creeping up into Sub territory. But Omega wants to increase it's market share, and in the US and Europe it's been consistently behind Rolex (mostly vying with Cartier here in the US).

In China, they've got franchise boutiques all over, and they're #1. But for how long? Other brands (Rolex, Cartier, IWC) are all making big gains in China and East Asia, gobbling up Omega's market share.

[gaopa]

In the new June 2012 issue of Watch Time magazine it states that 2011 was a banner year for Swiss watchmakers. Sales to Hong Kong were up 23.8 % over 2010, sales to Singapore were up 27.5% and sales to China were up 48.7 % over 2010. Sales in the USA were up 18.4%. Sales to other countries were also up, but not this much.

Thus the Swiss watchmakers are selling their products well all over the world. The rising prices have not hurt them at all. Cheers, Bill P.

[Kelly's]

It is interesting to see what the new 'rule' in Switzerland about the amount of work that must be done in country to call a watch Swiss made is driving this. The Swiss are also limiting the parts that are exported to make complete watches abroad.

[witch watch]

Originally Posted by manuu

aspire to be like westerners ? Kinda presumptuous ... don't you think?

I don't think you have been to the east much. The way they hold on to traditions there, you'd see that westerners are the last thing they aspire to be like.

No your right i have not, but then again i do know that those in the East like their Western luxury goods thus my "aspire" remark.

[witch watch]

Originally Posted by SUPERDOC

Ok - I'll concede that my statement was bit too basic and generalized..
But I still think that the much larger markets are the Omega targets...

Likewise Rolex - we get upset abou the price increases, but trust me - the luxury Brands don't care if they outprice a few consumers, as long as the whales continue to buy...

As far as Asians aspiring to be like Westerners....have you seen the average Westerner these days?...doubtful that this is the epitome of success in the minds of many.

Again i agree in parts with what you are saying but i still don't believe that any luxury brand from any sector would sell out the Western market to go all in to East. And as far as your average Westerner well i do get you but lets not try and say the "Western Lifestyle" is not appealing to most even if we here smack bang in the middle of it know it sometimes not all it's cracked up to be.

[SUPERDOC]

Originally Posted by witch watch

Again i agree in parts with what you are saying but i still don't believe that any luxury brand from any sector would sell out the Western market to go all in to East. And as far as your average Westerner well i do get you but lets not try and say the "Western Lifestyle" is not appealing to most even if we here smack bang in the middle of it know it sometimes not all it's cracked up to be.

I think we're on the same page here.
I'll admit that I was too general and simplified with my explanation, but I think that the larger foreign markets have to affect the product that we are seeing here...

I also think that things will take more than a few years to play out, and that a disgruntled customer who might be worth one or two watches in his lifetime
is not a big part of the Omega equation - and they may prefer to price some people out of their product..

5 yrs from now we might be looking back 'at the good old days - when Omegas could be had at a discount'

Look at how quickly Panerai prices jumped and stayed...
I'm sure the Paneristi at the time who witnessed it happening were all crying foul...

(For the Record, I think that much of the Omega and Panerai comparison is apples and oranges..)

[c.rod]

i dont like the new plan.... lol. they are trying to be rolex etc.. the only watch they make that "competes" with the subs etc, is the new planet ocean 8500 inhouse movement... even then i dont know if i would buy one with the price increase. i had a smp 300 black dial a few years ago, and liked it. just dont think its in the rolex range, especially with a modified eta movement....