Interview with Yvan Arpa, Founder of ArtyA

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

The crisis has accelerated the difficulties, and also those of the distribution and importers. The business model has changed and it is important to adapt. If brands do not offer added value in terms of the product and the experience they provide, in terms of the customer experience, it is difficult to imagine a promising future. Today, I believe that it is essential to have knowledge and to offer something new. Also, some points are fundamental: creating emotion and above all, being authentic. To go further, many people have a poor grasp of watchmaking techniques, and yet this is an essential point when addressing potential consumers.

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

I think the future will be very good for a brand with a strong DNA. Authenticity, being yourself, and working in a way that you feel is important. The brand should be an extension of ourselves. We have to be passionate, sensible and, I insist, authentic.

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

These two areas are complementary. Many young people wear smart watches, and this is a good thing for the watch industry because it can help to establish the habit of wearing them. On the other hand, smart watches have batteries that don't last very long, and are bound to become obsolete. However, one is not antagonistic to the other, and the two products are also complementary. Understanding the history of consumer trends may help to anticipate the future. What is certain is that it is important to reinvent yourself, all the time. The watch measures the passage of time and shows how much time we have left on this planet, so I think the mechanical watch is an immortal product, anchoring us in the present moment. It's different from the smart products that are developing.

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

Artya is 12 different worlds. Customers love our products, and hate others. This is crucial for our brand because it makes it desirable. We create emotion and that makes it come alive, a bit like a love story where people love each other madly, hate each other and then love each other again. Many of our customers have 30, 40, 50 models. It's a brand that speaks to them. Finally, we sometimes have a role as a therapist, providing the customer with what they need, in a different way.

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

Not at all, on the contrary. When I was at Samsung, my colleagues even wore traditional Swiss watches. That's an important point, and maybe people are looking for something else in a smart world. I don't think one precludes the other, simply. After all, I'm a very optimistic person, and I'm never afraid. This vision also helps Artya to be self-confident, and that's what our customers like. As far as smart watches are concerned, I launched the Samsung Gear S3 and I know about that. Samsung as a group has 200 billion in sales, the watch industry has 20 billion. The digital lobbies are now focusing on the health sector and this is the current challenge. So, smart watches are very different from mechanical watches, they connect, share information, read our lungs, use the network. In contrast, a traditional watch is complete, and waterproof, in every possible way.

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

No, absolutely not. It is a well-considered choice, because I made a study on this subject, and I concluded that it was not to be done.

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

I think you have to be careful not to be too opportunistic. However, if you take Alpina for example, if they launch a smart model why not, but it's still entry-level. Their clientele will not stop at the top of the range. Some brands, such as Hublot, where I worked, have done it, and make the subtle link with sport, just like Tag Heuer with Golf. These are the brands' own worlds, and it's a choice. Moreover, it would be complicated to make Swiss smart movements. Smart movements are Korean, Chinese or other. So we would lose our independence and we would have to adapt to their requirements, which is not always a success, so let's be careful.

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, of course, always. But again, let's be careful. The big brands with important financial objectives need a sufficient return on investment and this is the case for all companies that need to be profitable. I believe it is our duty to respect our history, micromechanics, and to move forward step by step. Then I feel like saying, let's create an emotional world where customers feel and experience the brand and the products it offers.

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

This is a fundamental element. You have to create passion, emotion and be authentic. I think that's what we call "life".

What do you think of hybrid watches?

In my opinion, this is not an unattractive concept. The prices are still quite low, but these products have a very high price elasticity which can be complicated to manage.