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.
Christoph Grainger-Herr, CEO, IWC Schaffhausen
What value do you see in the watchmaking industry going digital?
In the digital age, consumers want to connect with a brand whenever and wherever they want. In fact, e-commerce has become the most important medium for people to do research on products, available styles and technical details. Digital channels also enable us to reach out to new generations of watch lovers. In the past, for example, we were never able to get such instant feedback on new ideas. Will people like a green textile strap for the Pilot’s Watch Chronograph? Post it on Instagram and people from all over the world will instantly tell you if they like it or not. Another aspect is the omnichannel distribution model which allows customers to buy our products wherever and whenever they want. All of these shows how we are using digital technology to market, distribute and manufacture a product which is unchanged since the Swiss lever escapement was invented almost 300 years ago.
What about IWC’s digital movement?
We were among the first luxury watch brands to embrace social media, and the first with a permanent presence on leading e-retailers like Mr Porter and Net-a-Porter. We introduced brand e-commerce in the US in April 2017, and we are on track to roll it out in other markets. What’s more, we have already started to introduce customisation. While our founder, Florentine Ariosto Jones, used advanced manufacturing technology to mount an industrialised production, today we once again use modern technology to pave the way for the customised ordering and assembling of luxury watches. With an easy-to-use configuration tool on iwc.com, customers can design their personal Ingenieur Chronograph. They can chose from a selection of materials, dials, hands, and straps or bracelets to create a wide range of different styles. It has been available to US customers since March 2018 and the response has been positive so far. We are planning to roll it out in other markets, too.
Last year, IWC launched its website complete with an e-commerce platform. How have buyers adopted this platform and will we be seeing an expansion outside of the US?
We launched a new website to offer an enriched user experience. With an attractive environment in which to discover our products online, we are contributing to the overall IWC brand experience. Also, we felt that the time was right to introduce e-commerce in the US. In a strong digital market like the US, brand e-commerce completes our omnichannel experience and is an essential part of our service to our clients. So far, the results have been exceeding our expectations. We are planning to roll out e-commerce in other markets, too.
With the e-commerce platform in place and the general industry shift into online space, where do physical boutiques stand in the eyes of IWC?
Mechanical luxury watches are not only beautiful and of the highest quality, they are also very haptic products that need to be touched and felt to be fully appreciated. This is why I am convinced that, even in the digital age, IWC boutiques and our retail partners will remain the cornerstone of our distribution strategy. We have always viewed e-commerce as an extension of our existing customer service, a channel complementing our physical retail network. We are constantly innovating and trying out new concepts. In January 2018, we opened the pilot’s bar, Les Aviateurs, in Geneva in cooperation with a partner. Together with our adjacent boutique, this creates an entire universe where customers can experience the IWC brand and our products.
IWC has been quite successful in engaging the younger demographic on digital platforms. How do you manage to achieve this fine balance of being sociable yet exclusive, thus keeping the brand’s luxury values?
Regardless of which channel you are using to communicate, you need to stay true to the values of the brand. IWC is a brand for people who are on the move. Thanks to its authenticity and uniqueness, it strongly appeals to free-spirited individuals who are openminded, curious, adventurous and who live life to the fullest. In the recently launched advertising campaign with our new brand ambassador, Bradley Cooper, we translated these values into an omnichannel campaign, which includes print ads, various online formats, a movie commercial and a unique virtual reality experience.
