Geneva watch brand Raymond Weil wants to win over young customers
The Geneva-based watchmaker Raymond Weil wants to focus more on attracting young buyers in the future. These days, it’s no longer a given that children wear watches. The company is therefore investing in the brand’s online presence and relying on social media influencers and bloggers.
Trade fair appearances, on the other hand, will play a subordinate role in future. Accordingly, the company will only be appearing in passing at the SIHH watch show in Geneva, which begins on Monday, and will not be present at the Basel watch fair at all.
Presentation of watches away from trade fairs
By withdrawing from Baselworld, the company wants to take a new approach, said Elie Bernheim, the head of the family-run company from Lancy, in an interview with AWP. "At major trade fairs, I was often only able to meet with our partners for around fifteen minutes," explained the Raymond Weil boss. This year, the company is inviting retailers throughout the year to present the collections to them over several days. This also happens on the fringes of the SIHH, for example.
This is also about being able to make the necessary adjustments to the watch models promptly and launching collections on the market quickly. Until now, the company has waited until spring, at the start of Baselworld in March, to do this. "We want to spread the launch of new models throughout the year and react more quickly to market requirements," said Bernheim.
More e-commerce
From 2019, the watchmaker wants to appeal to young consumers in particular. The brand's target groups and themes revolve strongly around the younger generation aged 18 to 30. "Today, it is no longer a matter of course for children to wear a watch," says Bernheim. Smartphones are increasingly serving as a "replacement" for the traditional watch. To appeal to young buyers, Raymond Weil now spends more than 30 percent of its marketing expenditure on digital communication. Influencers in social networks, bloggers and other digital channels are essential.
The price segment of Raymond Weil watches, which generally cost between 1,500 and 2,000 francs, is generally predestined for young customers - and the range is being expanded accordingly on the online sales channels. According to Bernheim, Raymond Weil currently generates around 10 percent of its sales in e-commerce. This is set to grow to a quarter by 2025. In contrast, the number of points of sale has been reduced in recent years from around 4,000 to 4,500 to around 3,000 today.
In terms of business performance, things are apparently going satisfactorily for Raymond Weil. Things went "pretty well" last year, said Bernheim. Turnover had increased by 3 to 5 percent. The company does not provide detailed information on the business figures. Raymond Weil is estimated to sell around 150,000 watches a year and generate sales of over 200 million Swiss francs.
Brexit and the trade dispute
And Raymond Weil wants to continue to grow in the future. According to Elie Bernheim, the company would be "quite satisfied with growth of between 1 and 7 percent" in the current year. However, the uncertainties on the market remain great. For example, the British market, the second largest for the company, is suffering from the turbulence in connection with the planned Brexit.
The weakness of some currencies, such as the Turkish lira, and the Sino-American trade dispute are also cause for concern. Meanwhile, Bernheim sees Japan, where the Geneva-based watchmaker has been present for two years, and Australia as future growth markets. (SDA)
