Richemont Makes Offer for Net-a-Porter
Richemont, is the world’s largest jewelry maker and owner of luxury watch brands such as Cartier, Jaeger-LeCoultre, IWC and Panerai. It already owns a third of the online fashion retailer New-a-Porter.com and on 1 April, Richemont made an offer to buy the remainder of the retailer for about US$343 million. This acquisition will see Richemont take a much stronger position in the online fashion.
Luxury Watch Brands Reluctance
Luxury watch brands have been very reluctant up until now to sell their products online due to concerns that selling online cheapens the buying experience and doesn’t allow them to sufficiently control their brand image. According to the luxury brands, buying your luxury watch in-store is all about the total shopping experience an authorized dealer brings to the transaction. An increasing number of buyers are not so convinced.
The In-Store Luxury Watch Buying Experience
The actual experience of luxury watch buyers – especially knowledgeable buyers – is patchy at best. Sales staff in many authorized dealers are not as knowledgeable about specific brands and watches as some of their well researched customers. And being a well researched customer is now easier than ever with information that is easily available on the internet. Increasingly, potential luxury watch buyers go online to do their research and there they learn what is available and the price. And having chosen a potential watch, or watches, to purchase, they start their buying search online also.
The Trend to Buying Luxury Watches Online
The trend of researching luxury watches online has seen online sales of luxury watches continue to grow and it’s not just because the price is inevitably better. Buying online gives the buyer a greater range and variety to select from than their local watch store could possibly provide. So it makes sense that luxury watch brands start to embrace what is a growing trend for luxury watches and other luxury items to be purchased online.
A Turnaround Around in Attitude?
Richemont’s purchase of Net-a-Porter could be the start of a turnaround in the attitude of luxury watch brands to selling online. Even though Net-a-Porter does not currently sell luxury watches through their site, Richemont could start to include some of their brands on the site. Alternatively, and more likely, Richemont will begin to sell their watches through their own brand sites. What impact this has on their network of authorized dealers and the contracts they hold with them will be interesting to follow. Whatever they decide, the experience and knowledge they gain by owning and operating a luxury goods online retailer will stand them in good stead for any launch into the online luxury watch retailing space. Interesting times ahead for those of us who prefer to buy our luxury watches online.
Interesting times ahead indeed...
Some of these include Rolex, Cartier, Omega, Tag Heuer, Swatch, Ann Klein, Bvlgari, Breltling, Chopard, Guess, Tissot and others.
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