Post-Baselworld performance

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Post-Baselworld performance - Eberhard & Co.
5 minutes read
Eberhard & Co. managing director Mario Peserico talks about the impact of the absence from Baselworld and his outlook for the year ahead for Eberhard & Co.

After taking the tough decision not to exhibit at Baselworld this year, Mario Peserico is positive about business for the year ahead. Even in spite of difficult times in the brand’s biggest market (Italy), he is targeting 10% growth from his current production levels of 16,000 watches, especially now that ETA is open to selling him more movements.

Did you notice any impact from your absence at Baselworld this year?
It was a sad decision and we didn’t like not being at the exhibition. We are a brand that pays a lot of attention to this Swiss watchmaking market but I consider this as an entire system and it is a system that has been showing some scratches when Baselworld no longer represents the entire industry. So we were sad, but at the same time I think we made the right decision. We have been showing our 2018 collection and seeing customers and the media over the past couple of months in some markets and the results have been much better than those we had in Basel before.

We were able to organise meetings in relation to the importance of the market. In Italy, for example, we have a large distribution network so we invited retailers, journalists and even end customers. In one day we had 68 Italian journalists, whereas over six days at Baselworld last year we had 38. In the personal meetings we also doubled the orders we previously received in Basel. Meeting with the customers also allowed us to explain things that we would never have had time to do in Basel. During the day in Milan we had a talk from a professor from the IMD about the direction that online and offline distribution are going – these are things that most of our customers had never heard of or considered, because even when they are invited by the big groups they still don’t have the time for that kind of thing.

What are your thoughts about online sales?
We consider online because it is an important channel and we see from statistics that it is increasing not only in terms of volume but also in terms of value. This shows that people are buying products at higher average prices. But we don’t want to substitute our retailers. We will support them in selling through their sites and with communication on social media (for example, they happily accept to post our news on their channels). We always work in cooperation with the retailer.

Tell us about the 2018 collection…
I love the soft strap on the Nuvolari Legend. Very often, even with a leather strap, it can be either too tight or too loose but I think with this one it is never too tight because it is so soft, and even if it is a bit loose it still grips to your wrist. It’s also a good combination with the colour of the numbers on the dial. We have two sizes, 43mm and 39mm, with the larger size priced at 4,700 Swiss francs and the smaller at 4,300 Swiss francs.

Post-Baselworld performance

In the Scafograf we introduced the diver models in 2016 and the GMT in 2017 and now we come with a limited-edition of 500 pieces of a GMT version with a DLC coated case and a ceramic bezel. We have been using DLC for 13 years already, only for limited editions, and we are very happy with the results. We also have the new Scafograf 100 for ladies. We already have the Gilda model for ladies, which is more elegant, so we thought a sportier ladies’ model would fit well in the collection. There are two versions, both with mother-of-pearl dials, one in brown and one in white, also with a ceramic bezel and a matching rubber strap or stainless-steel bracelet. These retail for 2,600 Swiss francs.

Post-Baselworld performance

Apart from the new watches, how is the rest of the collection doing?
The limited-edition Chrono4 we presented at Baselworld last year sold out during the show, which was nice. The sell-out from our stores has been very positive, too. The regular Chrono4 is doing well, as is the Scafograf, since we ran out of stock in November last year and we did better than we thought.

Post-Baselworld performance

Do you have more flexibility in your production and launch planning now that you are no longer tied to Baselworld?
At the end of the summer we will be able to take stock of the first nine months of the year and start planning for next year. The problem with Baselworld was that ten years ago everyone was producing to be ready for the show and keeping everything under embargo until the show. The marketing was then done after the show until September. Today everything has changed. We had some previews ahead of Baselworld and not being there allowed us to be on the market at the right time. For example, we were able to present some products in February and be on the market in April. Then we can present the second batch in May or June and be on the market immediately after the summer. Then we can come with a third in September and be on the market in time for Christmas. This is also what our customers expect.

Is your outlook for the next year positive?
Yes. The Italian market still accounts for 45% of our sales. It’s not doing too well at the moment and the first few months of the year were not positive at all. But overall we are doing better than average if you look at Swiss watch exports to Italy.

Was your decision to leave Baselworld irreversible?
We have not been contacted by Baselworld and I don’t think we will be. One of the reasons we left is because their approach is not very modern and we were looking for new ideas. We know that we can do better but I also appreciate the importance of Baselworld for the industry as a whole. If we were approached in this regard with some new ideas for how the exhibition could once again be representative of the entire industry then we would be open to discussion. 

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