It seems that nothing and no one is impervious to the digital wave that’s sweeping across businesses around the globe, including the world of horology. The Peak speaks to leaders of the watch industry to better understand how this march towards digitalisation is making its impact on an area that prides itself on the rich history, careful mechanics and art of it all.
Jérôme Biard, CEO, Corum
A lot of watch companies are starting to focus on the next generation of customers. What can you tell us about Corum’s client base?
We have to remain contemporary because the clients are different. Today, the young purchase our watches despite the fact that they c ost a lot. We keep the Bubble collection as a creative laboratory that allows us to make exciting partnerships, but still retain the heritage and DNA of the brand with Admiral and Golden Bridge. Most of the clients purchase not one but a few Bubble watches that equate the price of a Golden Bridge. This tells us that we have a good clientele with sufficient earning power.
The adoption rate for digital in the watchmaking industry is rising at a staggering rate. What can you tell us about Corum’s strategy with e-commerce?
For me, the digital e-commerce space still has to be able to transfer emotion to our consumer just as well as the traditional physical boutique. I am entirely against platforms that only operate by taking advantage of the price. I want to kill those types of e-commerce platforms because they are dangerous. It devalues the brand
In the price structure of a watch, the biggest portion comes from the retailers and there is a reason for this. They are renting space in a high-profile area of town and they are investing in holding a large stock of watches. And I feel it is unfair to then give our products to a platform that exist purely by giving discounts. For us, the way we authorise an online boutique is the same as we would authorise an offline boutique. We look for those who can do the same as the traditional brick-and-mortar store, and bring emotion to the consumer and provide a good service.
I have instructed every country to work with trusted e-commerce platforms. This will promote the brand. I don’t want a situation where a vendor doesn’t even have a single collection of Corum watches in their stock, but still tries to sell the watch and then ask us to fulfil the orders. I want them to invest in the stock, in the brand.
What is Corum currently doing in the digital sphere?
We just started our own e-commerce site (March 2018) so we don’t expect large sales. But, for now, we have one watch that will be exclusive to our own e-boutique. As you know, the Hobo Coin watch has been an icon in Corum Heritage, so we created the Bitcoin Watch that will be a unique piece only sold online. We thought that since Bitcoin is a form of virtual money, the watch should be sold in a virtual shop. It makes sense. Everything we do should make sense.
Also, starting from 1st of April, we will deliver our watches with a new electronic warranty that will be initiated by credit card terminals. It has become too wide to control when and to whom a watch has been sold. So, we are using the same company that issue electronic warranties as Rolex. This helps us fight against the grey market as well.
What are your strategies for the brand moving forward?
We have to remain in our place. Corum, producing around 10,000 pieces a year, cannot run with 10 subsidiaries around the world, and we don’t want to copy and paste the strategies that have been working for other brands. The goal now is to bring value back to the brand.
Our hashtag this year is ‘Craft Your Dreams’. We like people who have dreams and work to realise it. It is not the same as non-stop dreaming because you can only be disappointed if you have dreams that are out of your power. Then you get frustrated. We don’t want to get frustrated, so we want to make realistic moves.
