Interview with Marc Wälti, Marketing and Communication Manager of Corum

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

As in all sectors, the impact is quite significant, for several reasons. For example, there has been the closure of retail outlets, which account for 97% of sales in this sector. In addition, suppliers have also closed. Also, watches are a non-essential accessory, which has not encouraged consumption. But today, the watch industry is gradually recovering.

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

I believe that Swiss watchmaking is not antinomic with the connected world, which presents very different products and becomes obsolete very quickly. Anyway, they remain luxury accessories because we generally read on our phones. Nowadays, buying a luxury watch is an investment, a pleasure that we give ourselves, which can have an ostentatious function for some collectors.

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

Habits will develop, so changes will happen. For example, smart watches are bought online, but if you look, in the watch industry they are also increasingly bought online with COVID-19. Smart watches do not pass through generations, but it is true that they are taking over wrists.

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

Corum has a great history since 1955. A spirit of innovation and a niche positioning. I am thinking in particular of pieces like the Golden Bridge or the baguette movement. Our pieces highlight the beauty of the movement, which is now visible, and the beauty of the watchmaking mechanism. This is also the case with the Admiral, where the link is made with the nautical world, a well-defined territory. Corum is precisely the first brand in this nautical field and we naturally highlight this.

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

For Corum, no. For the Swiss industry, a little. But a few years ago, watches were becoming obsolete and today, people are getting used to wearing a watch again. Our lives are changing, our needs are changing and Swiss watchmaking still has a great opportunity.

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

No, it's not our job and it's complex. Mechanics is not at all the same thing as software where you need teams of developers, and that's not our challenge.

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

The reason for doing so would be to attract a younger clientele and convert them to traditional products in the future. Generations pass, and the more the offer is expanded, the less one remains faithful to a brand. It is important not to downgrade and lose all our knowledge and current watchmaking skills. Traditional watchmaking will remain.

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?

Yes, it is interesting. The materials used in watchmaking are a good example. We can play on the weight, which is also pleasant if it's aluminium for example. Also, we could look at other sectors, and be inspired by visual innovations, or interesting functions in order to respond to current consumer needs.

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

I think that the watchmaking industry is rather late, globally. We are traditional, and this distribution system is quite complex, which can be a hindrance to the wholesale system. There is sometimes little information to follow the pieces. To have a customer experience, you have to know your customer, set up CRMs and segment. These are major issues in our industry. I'm also thinking of online sales, which is a good opportunity, but also a challenge.

What do you think of hybrid watches?

From a personal point of view, it's very interesting. From a brand point of view, not so much. I'm not sure that's what the consumer is looking for. But the technology in the strap can be an interesting element. It's ultimately very tricky because you're looking for timeless, and electronic is the opposite.