It was in the unlikely setting of Majorca, as part of a fun-packed day discovering the world of extreme sailing with the Armin Strom Sailing Team, that Serge Michel took the time to explain in depth the brand’s new online configuration tool. In doing so, he both raised and answered the main questions that this new form of retailing, which is inspired by successful implementations in the automotive industry, poses.
Why did Armin Strom need an online configurator?
There was a clear demand from the market and Armin Strom already had a strong reputation in personalisation thanks to the work of Armin Strom himself, who founded the brand. Furthermore, we already offered possibilities of customisation to our retailers. But the retail landscape itself is changing and people trust e-commerce more. The average price of items purchased online is constantly increasing.
What are the advantages of the configurator over traditional retail channels?
It’s more convenient. It’s available 24 hours a day, 7 days a week and you don’t have to leave your home, which is important in certain regions where customers may not even have access to a luxury watch retailer. As an example, we recently sold a watch to someone who lives in Montana in the US via the configuator. To buy an Armin Strom watch from a retailer, he would have had to get a flight to Los Angeles (where our nearest authorised dealer is) and then a taxi to the store.
Is it a threat to the retailer?
I don’t think it’s a threat but retailers will have to adapt to these new channels. In order to survive a retailer will need to offer something different and, above all, be good. They will need to act more as a consultancy, offering support, advice and guidance. This means they will need to be knowledgeable, since customers are increasingly more knowledgeable than the sales staff. This doesn’t help a brand like Armin Strom, which a salesperson may not push due to lack of knowledge. A concept we are hearing more and more about, and which is one of the trends of the year, is the idea of “retail kinship”, in other words the connection between the customer, the sales person, the product and the experience.
The configurator is also a useful tool for the retailer. It allows their customers to configure their own individual watch, without compromise. It offers them a new sales tool and helps with their cash management. Previously, a retailer would have had to invest up to 200,000 Swiss francs to have a core Armin Strom collection, now they just need five demo watches. Last but not least, the configurator kills the grey market.
How will Armin Strom help the retailer?
Retailers will be provided with a special configuration terminal with a touch screen and a connection to our sales cloud. They will also receive special point of sales material that shows the configuration possibilities (different treatments, colours, straps etc.). We have a geographical delimitation, so in certain areas watches ordered using the configurator will be shipped to a local retailer. For example, our retailer in Denver has exclusivity for the state of Colorado, so anyone in the state of Colorado who orders an Armin Strom watch using the configurator would collect it from the retailer in Colorado.
And how will the configurator help Armin Strom?
The most valuable part of the configurator is the data that it provides. It will help with our research, allow us to target promotions and react in real time, plan our production and test new components and materials virtually without having to buy stock. Furthermore, since people can save their configurations, we can see who has saved configurations without buying a watch. We can then pass this information on to a local retailer who can follow up with the customer.
What has the initial feedback been?
We have seen that the majority of configured watches are our entry-level (manual) pieces. We have also seen that the configurator can open up new sales opportunities beyond traditional retail channels. We are in discussions with a supercar tuning company, for example, about installing our configurator at their dealership.
How long does it take from ordering the watch via the configurator to it being delivered?
It can be anything from four weeks to two months depending on the type of model. For example, tourbillons obviously take longer to assemble than our entry-level models.
