Interview with Bertrand Savary, CEO of Arnold & Son

How do you see the impact of COVID-19 on the watch market?

I think it had a big impact. However, the secondary market has maintained an interesting position, which is positive. The small independent brands are now being impacted. The brands have sometimes all bet on certain markets such as China, the United States and Europe, and you have to be careful about the sell-in and sell-out, making sure that the markets are balanced. In addition, there are fluctuations in the price of raw materials, such as rose gold for example, and delivery problems.

How do you see the future of traditional watch brands in a hyper-connected world?

I don't see any difficulty for traditional watchmaking, it has a card to play and I don't think it will encounter any difficulties.

With the presence of smart watches, do you foresee changes in consumption patterns in the watchmaking industry?

I would say that smart watches are a good thing for watchmaking. The first watch young people wear is a smart one. Then they get used to wearing a watch, and later on they get interested in traditional watchmaking. On the other hand, the lower end of the market has certainly suffered. With tradition, you are buying know-how. It's not one or the other, because I believe that what interests customers of smart watches is also this health aspect which represents a significant potential in this field.

What are the particular elements that characterise your brand and that your customers particularly value?

We have the largest 2D moon on the market. In addition, we have flagship products such as the large 3D perpetual moon and the Globetrotter 88. So we have a strong product identity despite the competition.

Do you see smart watches as a threat to your brand?

No, not in our price range.

Do you plan to offer a smart model in the future and why?

No, it's not in the brand's DNA.

In your opinion, what would be the reasons for offering, or not offering, smart watches for a traditional watch brand?

I don't think it would be done for our brand. It would be opportunistic and the development costs would be too difficult to make profitable.

What do you think of non-technological innovation in terms of competitiveness for the Swiss watch industry? In other words, is innovation based on aspects other than technology interesting to you?

I believe that today's customers are savvy and aware of the quality of the products, the watch components and the increasing sustainability aspect.

What do you think about the role of customer experience in the marketing strategies of traditional watch brands?

This is something very important and very complex. The customer experience is common in the act of buying and is also present on the internet. The brand universe plays an important role, as do the shops and retailers.

What do you think of hybrid watches?

Hybrid watches are something interesting. It could improve technology and be very relevant when you think about health.