Working on a major feature on boutiques for Europa Star, the bible of the watch industry, has gotten got me thinking seriously about the future of watch retailing. In today’s world, it seems like every brand wants to have a boutique. No matter how big or how small the brand is, a boutique appears to be de rigueur. I have spoken to a number of brands who have their own boutiques about this issue, and I have never really been satisfied with the answers most of the brands give.
Sure, a boutique is a great way to present a brand. The brand doesn’t have to compete for space with competitors, like it has to do in a multi-brand boutique. The entire collection from a brand can be showcased in the store in the way the brand wants and, in theory, the sales people will present the brand in the absolutely correct way.
The reality of brand boutiques is slightly different, however.
I don't think that a brand opening its own boutiques is good for the independent retailer.
I think boutiques are a bit intimidating to walk into unless you are already a fan of the brand and are ready to buy. For example, I am a Harley-Davidson rider and fan. When I travel, I make it a point to go into the local Harley-Davidson store wherever I am. I am there to see the Harleys and all the different merchandise, and I am ready to buy something. But, I am already a Harley owner. Before I actually owned a Harley, I didn’t visit any Harley stores, preferring to shop multi-brand stores, and I still like the variety of multi-brand motorcycle stores.
I also don't think that a brand opening its own boutiques is good for the independent retailer. Sure, some boutiques are opened in partnership with the brand's local retail, which is no problem, but when a brand competes with its own retailers (or worse, closes its long-term partner to open its own boutique), it just doesn't seem right. These retailers work really hard to establish the brand and promote it, only to get the "bum's rush" and get left out in the cold.
Brand boutiques can inadvertently encourage discounting.
A multi-brand store is where someone who is shopping for a watch will go, because they can really shop and the sales people in the store can advise them on any number of different brands. Customers who have already decided which watch they want might go into a boutique to buy (or just to compare prices).
I also think that brand boutiques can inadvertently encourage discounting when they open in the same city as an independent retailer, as retailers are tempted to compete on price in order to set themselves apart from the brand boutique, and to give the consumer a reason to shop in their store. After all, a retailer can't compete with a boutique on product selection, as they tend to have the complete collection and special "boutique only" editions, so taking them on with price often is the default.
At this point, many of the big brands might be thinking that they can just cut out of the middleman and do the majority of their business direct with the consumer.
I think they are wrong. The independent retailer is a necessity as a relatively objective expert that can help guide consumers into the perfect watch purchase.
Frankly, I am worried about the future if brands continue to focus on expanding their wholly-owned boutique network. It might mean more profit in the short term, but it may hurt the future of watch retail.
I say, long live the independent, authorized retailer.
