"Marketing Take" on Omega Swatch Co-Lab

[TDS]

Came across this article recently, interesting take... makes sense to me but I'm no Marketing expert...

https://www.marketingweek.com/mark-r...h-co-branding/

[AdamW]

I am a marketing expert and I think this hurts Omega's brand at a time when it was prospering the most from the current Rolex situation. It was poised to really be accepted by the WIS community as a viable alternative. Ridicule by those in the know is never good. Plus, those who never thought of a luxury watch and buy it because it's $250.00, aren't exactly the target demo for Omega.

Maybe I'm just too personally biased. I hate the whole thing.

[raclaims]

Totally agree Adam...yet over on the Omega Forums the guys think this is the most brilliant move ever made by any company ever...

[Carrera911]

I think they did well with the buzz but failed (miserably) with the execution.
Dye coming off the watch, 75 units available in store for the launch, website that keeps crashing, no online sales for foreseeable future, no strategy at all.

My take on the Omega brand being cheapened by these watches is that it actually made me desire more a genuine speedmaster, so I think they did well.

[C0d]

Originally Posted by Carrera911

I think they did well with the buzz but failed (miserably) with the execution.
Dye coming off the watch, 75 units available in store for the launch, website that keeps crashing, no online sales for foreseeable future, no strategy at all.

My take on the Omega brand being cheapened by these watches is that it actually made me desire more a genuine speedmaster, so I think they did well.

This. Lot of people reached their drawers and pulled out their real speedies if they had one. Some actually went and bought a new one. I know someone who did just that.

I have the real thing, he told me with a grin I couldn't wipe.

I don't think its all great but it has definitely drawn a lot of attention and that's never a bad thing.

All the forums are still buzzing with MoonSwatch amidst W&W 2022. Which is a big "meh".

Tudor launched a bunch of two tone blackbays and a homage to a Steinhard which was a homage to original Rolex.



Rolex launched... hmm.. well they tweaked. Or subtly changed as you Rolex guys call it, keeping intact its class.

IWC hasn't been relevant in recent years.

So yea... Omega got what they wanted, at least for now.

[Krash]

My initial understanding is that these were only supposed to be a limited run. That being the case, I thought it was a great marketing move. I went on record saying so. They created a lot of excitement and publicity for Omega.

However, if these are going to be a permanent addition to the Swatch catalog that anyone can easily acquire, then hell no, it’s a terrible marketing decision.

In terms of the actual watches, I’m not some youtuber that’s concerned about losing subscribers, so I am free to speak my mind. The watches are ugly over-priced pieces of junk. Period. You can call me a snob all you want. I don’t give a crap.


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[cwh812]

Originally Posted by Krash

My initial understanding is that these were only supposed to be a limited run. That being the case, I thought it was a great marketing move. I went on record saying so. They created a lot of excitement and publicity for Omega.

However, if these are going to be a permanent addition to the Swatch catalog that anyone can easily acquire, then hell no, it’s a terrible marketing decision.

In terms of the actual watches, I’m not some youtuber that’s concerned about losing subscribers, so I am free to speak my mind. The watches are ugly over-priced pieces of junk. Period. You can call me a snob all you want. I don’t give a crap.


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Fully agree with the statement that the watches are over-priced pieces of junk, but they are certainly not ugly. They are actually IMO very beautiful pieces of junk.

[htc8p]

It’s a way to promote and give good pr to omega. I think it’s more of a swatch product.

It worked look at the hype generated. Omega has to keep it up to convert swatch buyers to real omega buyers


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[GST15]

Originally Posted by AdamW

I am a marketing expert and I think this hurts Omega's brand at a time when it was prospering the most from the current Rolex situation. It was poised to really be accepted by the WIS community as a viable alternative. Ridicule by those in the know is never good. Plus, those who never thought of a luxury watch and buy it because it's $250.00, aren't exactly the target demo for Omega.

Maybe I'm just too personally biased. I hate the whole thing.

I also agree with Adam. Devalues the brand. Omega should try to compete with Rolex instead of Casio. I really like the new Omega releases, but I am having a hard time feeling the same way about the company at this point, and will pass on the new AT I was considering.

[atxwatch]

I don't have a PhD in Marketing, but I have been an Exec in Marketing for 20+ years. And I also believe that this move devalues the brand. Omega is/was the heir apparent for Rolex...the natural solution for aspiring Rolex owners who can't find a Rolex at retails and are unwilling to pay secondary market pricing.

I don't actually believe that the sales of Moonswatches will hurt the sales of the Speedy, I actually think it might help Speedy sales.

But in broad branding terms, the idea of a luxury product to become more successful, it has to be able to fetch ever greater prices for increased margins since production usually doesn't scale up much if at all. In order to fetch greater prices, the brand has to create greater desire which is typically done by making the brand more aspirational.

Omega has done the exact opposite...instead of making the brand more aspirational, they have made it more accessible...even if only in perception.

I am not sure a single, especially limited collab, will dent the positive aspirational trend of Omega watches, but endless production of this product and/or other similar collabs can and will erode the perception.

There is a reason why Rolex sponsors the top-tier athletes of all the sports that are played and watched by the wealthiest individuals on the planet. And there is also a reason why they don't sponsor the top-tier athletes in sports that are overly accessible.

I own a Speedy 3861 and it is a fantastic watch.

[Tools]

Sure....

Can't wait to put on the old Speedy and have some kid ask me if it's the new 200 dollar Swatch.

[Kram In Oz]

I trust these (younger than me) guys from Theo & Harris and their watch marketing opinions. And they make me laugh.
https://youtu.be/l70KQ5N1AEQ

[VogelPhoenix]

"It’s a fun project and adds some light to an industry that can take itself too seriously." Case in point, most replies in this thread.

[~JJ]

If planting a seed was/is the goal, then they should have been free with an Omega purchase for the dad to hand to their kid… great bonding moment and something to talk about over time.

Also, I don’t think the seed will grow since swatches break so easily the kid will never grow an affinity to purchase the real deal since it will either be tossed or placed in a junk pile.

[Krash]

Originally Posted by atxwatch

I don't have a PhD in Marketing, but I have been an Exec in Marketing for 20+ years. And I also believe that this move devalues the brand. Omega is/was the heir apparent for Rolex...the natural solution for aspiring Rolex owners who can't find a Rolex at retails and are unwilling to pay secondary market pricing.

I don't actually believe that the sales of Moonswatches will hurt the sales of the Speedy, I actually think it might help Speedy sales.

But in broad branding terms, the idea of a luxury product to become more successful, it has to be able to fetch ever greater prices for increased margins since production usually doesn't scale up much if at all. In order to fetch greater prices, the brand has to create greater desire which is typically done by making the brand more aspirational.

Omega has done the exact opposite...instead of making the brand more aspirational, they have made it more accessible...even if only in perception.

I am not sure a single, especially limited collab, will dent the positive aspirational trend of Omega watches, but endless production of this product and/or other similar collabs can and will erode the perception.

There is a reason why Rolex sponsors the top-tier athletes of all the sports that are played and watched by the wealthiest individuals on the planet. And there is also a reason why they don't sponsor the top-tier athletes in sports that are overly accessible.

I own a Speedy 3861 and it is a fantastic watch.

Your 20+ years as a marketing executive is much more impressive to me than some PHD with limited “real world” experience.


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[Bizcut1]

I think they will sell millions of them.

They will also continue to sell plenty of Speedmasters.

Two different demographics and products.

[HMHM]

Swatch should take a good hard look at how Richemont manages ALS instead of making a mockery out of Omega at every opportunity.

[TimeAZ]

Originally Posted by AdamW

I am a marketing expert and I think this hurts Omega's brand at a time when it was prospering the most from the current Rolex situation. It was poised to really be accepted by the WIS community as a viable alternative. Ridicule by those in the know is never good. Plus, those who never thought of a luxury watch and buy it because it's $250.00, aren't exactly the target demo for Omega.

Maybe I'm just too personally biased. I hate the whole thing.

I agree with you 100%, speaking from the standpoint of a potential consumer.

I've stopped thinking of Omega when I think of "Rolex alternative", and when the Rolex cases are empty and I contemplate a new watch, I currently look at Cartier, VC, and JLC as alternatives.

PS: Why do fan-boys always call it "marketing genius!!" when brands make terrible and stupid mistakes? Or, when random circumstance results in market conditions like shortages. A pandemic shut down the factory and there's supply shortage, must be marketing brilliance!

[subdownunder]

Originally Posted by AdamW

I am a marketing expert and I think this hurts Omega's brand at a time when it was prospering the most from the current Rolex situation. It was poised to really be accepted by the WIS community as a viable alternative. Ridicule by those in the know is never good. Plus, those who never thought of a luxury watch and buy it because it's $250.00, aren't exactly the target demo for Omega.

Maybe I'm just too personally biased. I hate the whole thing.

Been saying this all along, Richemont sacrificing Omega for the benefit of Swatch as Swatch are more likely to thrive in the technology driven sales world we are facing.

Look forward to a Swatch Seamaster next if this watch sells.

Profits and shareholder value will always trump sentimentality and Swatch generates far more profit.

[YoungRolexCollector]

Originally Posted by AdamW

I am a marketing expert and I think this hurts Omega's brand at a time when it was prospering the most from the current Rolex situation. It was poised to really be accepted by the WIS community as a viable alternative. Ridicule by those in the know is never good. Plus, those who never thought of a luxury watch and buy it because it's $250.00, aren't exactly the target demo for Omega.

Maybe I'm just too personally biased. I hate the whole thing.

Couldn’t agree more Adam. I sold my Omega when the Swatch came out. Kills the brand image and Omega’s fundamentals.


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[njlam]

With the younger generations not needing to wear a watch to tell time because they all have smartphones, I think the idea of the MoonSwatch is genius, while the execution may not be perfect. It puts the real Speedmaster on an aspirational path for the young.

Anyone who thinks Omega is an viable alternative to Rolex is practicing wishful thinking. Omega will sell you as many Speedmasters as you want for $6K and the resale value will never go up.

Rolex will never sell you anything you want. They sell you what they want at their price. That is power.

[Shadow Play]

The more I think about it the more I think the issue of this collaboration runs deeper than a simple should Omega have done this. Should Omega even be in the position that they need a collaboration with Swatch to generate more interest in their watches? For me at least, I’m not a fan of their 007, Olympics and Hollywood marketing. With better marketing in the past Omega watches should be as desirable as other famous watch brands.

Does the Swatch group place too great an emphasis on profits, often at the cost of diluting classic watches? By that I mean they appear to have so many variations of their watches and the designs change so much that a true classic rarely gets the chance to evolve.

The Swatch group will make massive profits on the MoonSwatches so I guess we will need to wait and see how they invest these profits.

[cwh812]

Originally Posted by njlam

With the younger generations not needing to wear a watch to tell time because they all have smartphones, I think the idea of the MoonSwatch is genius, while the execution may not be perfect. It puts the real Speedmaster on an aspirational path for the young.

Anyone who thinks Omega is an viable alternative to Rolex is practicing wishful thinking. Omega will sell you as many Speedmasters as you want for $6K and the resale value will never go up.

Rolex will never sell you anything you want. They sell you what they want at their price. That is power.

I have both Rolex and Omega. Love both brands. Hate the fact that I can’t walk into a Rolex store and purchase what I want so my last big purchase was an Omega (at mid tier Rolex MSRP prices) and I’ll wait to see what Rolex does to address their supply/demand issue. Something’s got to give.

And fully agree with everything you said.

[Krash]

Originally Posted by TimeAZ

I agree with you 100%, speaking from the standpoint of a potential consumer.

I've stopped thinking of Omega when I think of "Rolex alternative", and when the Rolex cases are empty and I contemplate a new watch, I currently look at Cartier, VC, and JLC as alternatives.

PS: Why do fan-boys always call it "marketing genius!!" when brands make terrible and stupid mistakes? Or, when random circumstance results in market conditions like shortages. A pandemic shut down the factory and there's supply shortage, must be marketing brilliance!

Will these MoonSwatches be a huge sales success? Yes, undoubtedly, but there is much more to marketing than just sales.

An important element of marketing is also brand image. The Swatch brand will significantly benefit by this collaboration, no doubt. Unfortunately, I’m not sure you can say the same thing about the Omega brand. I do believe it’s now tarnished.

My guess is that this was driven by Swatch and Omega had no say in it. Omega execs are just being good soldiers and carrying out the order.


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[Bill2e]

Originally Posted by AdamW

I am a marketing expert and I think this hurts Omega's brand at a time when it was prospering the most from the current Rolex situation. It was poised to really be accepted by the WIS community as a viable alternative. Ridicule by those in the know is never good. Plus, those who never thought of a luxury watch and buy it because it's $250.00, aren't exactly the target demo for Omega.

Maybe I'm just too personally biased. I hate the whole thing.

Bingo. I was considering an Aqua Terra, but I have scratched it off the list.

Maybe I’m wrong, but this has turned me off.

[Polar Bear]

I have a Speedmaster
I'll buy a Moonswatch for my little girl
It'll be her first watch
She'll have a watch "just like daddys"
When/if it breaks, I'll buy her another one if she liked it

Fast forward 20 years and what brand do you think she's going to have a connection too if/when she decides she wants a luxury watch?

All you guys that are put off by Swatch being "associated" with your precious Omega really need to worry less about what people think

[Krash]

Originally Posted by Polar Bear

I have a Speedmaster
I'll buy a Moonswatch for my little girl
It'll be her first watch
She'll have a watch "just like daddys"
When/if it breaks, I'll buy her another one if she liked it

Fast forward 20 years and what brand do you think she's going to have a connection too if/when she decides she wants a luxury watch?

All you guys that are put off by Swatch being "associated" with your precious Omega really need to worry less about what people think

Here’s why I’m not buying that. A MoonSwatch is definitely too big for a little girl, and many 18 year old and older women too, right? Plus, it’s also really too big for boys as well. Let’s face the facts here, most teenage boys have puny wrists.

It’s an adult sized watch. Honestly, my wrists are between 7.25” and 7.5”, which are big by TRF standards, and there are days when I think the Speedmaster looks huge on my wrist.

Now if your argument is that young 20+ year olds will buy this and then eventually get a “real” Speedmaster, then maybe that’s true.


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[Polar Bear]

Originally Posted by Krash

Here’s why I’m not buying that. A MoonSwatch is definitely too big for a little girl, and many 18 year old and older women too, right? Plus, it’s also really too big for boys as well. Let’s face the facts here, most teenage boys have puny wrists.

It’s an adult sized watch. Honestly, my wrists are between 7.25” and 7.5”, which are big by TRF standards, and there are days when I think the Speedmaster looks huge on my wrist.

Now if you’re argument is that young 20+ year olds will buy this and then eventually get a “real” Speedmaster, then maybe that’s true.


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Considering my 5 10 missus wears a 42mm Zenith, and G-Shocks typically crack 44mm-50mm, i think you'd better reassess what people think are "too big for them"

I have a 7inch wrist and anything below 42mm looks tiny, anything at 42mm looks small, IMO
Personal taste is subjective

Hell, do you know how many cheap fashion watches i see out in the world that are 52mm+?

[mquarter]

Originally Posted by Polar Bear

I have a Speedmaster
I'll buy a Moonswatch for my little girl
It'll be her first watch
She'll have a watch "just like daddys"
When/if it breaks, I'll buy her another one if she liked it

Fast forward 20 years and what brand do you think she's going to have a connection too if/when she decides she wants a luxury watch?

All you guys that are put off by Swatch being "associated" with your precious Omega really need to worry less about what people think

I think your daughter is exactly the target demographic for this collaboration, and this collab has a good shot at achieving its objective of building Omega as an aspiration brand within this non-watch geek/young demographic.

The problem for Omega is this has blown up in ways which were unintended. The ferals queueing up, jostling, fighting, stampeding, spreading COVID, flipping (or at least attempting to) have deprived the target segment from getting the watch and also have made Omega/Swatch look bad in the process.

[Krash]

Originally Posted by Polar Bear

Hell, do you know how many cheap fashion watches i see out in the world that are 52mm+?

Yes, they look ridiculous.


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