Industry News &#8211; Gevril

Gevril Group Brands in Spotlight at World’s
Largest International Timepiece Event

According to industry insider and Gevril USA President Samuel Friedmann, the 2015 Hong Kong Watch and Clock Fair was the best he has ever attended. Friedmann considers the prestigious fair a must-attend event, adding that this year some of his own brands were in the spotlight.

For 34 years, the prestigious international watch and clock fair has continued to grow in importance, becoming an essential destination for buyers, sellers, and industry experts. The Hong Kong Watch and Clock Fair is now the largest event of its kind in the world, with over 780 exhibitors from 23 different countries. Asian markets have become so important in recent years that famous brands like Gevril Group’s own Versus Versace are choosing to launch their latest products at the annual fair.


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Versus Versace was one of four international brands that had the opportunity to launch new products on opening day of the watch show. The high profile product launch was well received according to Mr. Friedmann, and was the perfect way to kick off an exciting five-day event.

This year’s Watch and Clock Fair attendees enjoyed daily watch parades and informative seminars designed to focus attention on the latest trends in the watch industry. Switzerland’s watchmaking expertise was featured at two all new pavilions this year, while a special “Wearable Tech Zone” featured the industry’s latest technological innovations. Even the general public got a chance to enjoy the show during a special “Super Saturday” on September 12 which featured lavish parades, celebrity events, and drawings for new watches.


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With a record $10.8 billion in imports and $10.3 billion in exports in 2014, Hong Kong has become the world’s largest importer of complete watches by value and the second-largest exporter of complete watches and clocks. It is also becoming the place where the watch world sources parts and materials.

It’s no surprise that the Hong Kong Watch and Clock Fair now rivals the iconic Baselworld Fair in Switzerland. Samuel Friedmann says he’ll probably be back again next year.

About Gevril Group

Gevril Group, watchmaker and wholesale watch distributor, is the exclusive U.S. agent for exquisitely designed and crafted European luxury and fashion watch brands, distributing and servicing some of the best affordable luxury and Swiss watches and trendy fashion watches. Gevril Group also operates a full-service watch repair, staffed by master Swiss watchmakers. Contact Gevril Group by email or by calling 845-425-9882.

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Impact of Climate Change on the Retail Supply Chain

Tue, 01 Jul 2014 21:40:36 +0000

Climate change disrupts the retail industry by creating volatility in the business environment, which impacts resource availability and prices, as well as stimulating regulatory shifts. Perhaps the most vulnerable part of the retail business is the supply chain, particularly for sources and infrastructure located in the developing world.

Vulnerabilities

The main vulnerabilities to the retail supply chain include the cost and availability of secure energy sources and water, along with weather events that disrupt the transportation of goods from Asia to the US and the EU. Companies that have just-in-time inventory systems may rely heavily on air transport for the rapid shipment of goods, but air transport alone contributes more than 3% of global greenhouse gas emissions. Increasingly, national governments are taking steps to limit those emissions, including here in the US, despite political opposition.

Even companies that already have sustainability strategies in place are finding that their initial efforts are not suitable for the long term, since ecological changes take place over time. What works today may not be effective a few years down the line.

For example, some companies that switched from carbon fuels to renewable hydropower later faced energy shortages due to reduced water runoff associated with drought. US businesses that reduced their use of air transport in favor of rail freight recently learned of a phenomenon called sun kinks, in which intense heat causes tracks to buckle and trains to derail.

Also, changes made at one point in the supply chain may spark a domino effect, causing problems in another. One example is unanticipated changes in substitute materials. If, say, enough manufacturers switch from synthetic fibers — dependent on petrochemicals — to cotton, the price of cotton will rise along with demand. And this also creates a new vulnerability because the cotton crop is affected by floods, extreme heat and other unpredictable weather conditions.

Opportunities

Depending on your point of view, the challenges posed by climate change may also present some opportunities. Agile, forward-looking companies have an opportunity to gain competitive advantages by using new technologies and business models. Smart sustainability strategies can deliver benefits in brand prestige, increased sales, cost savings and investment capital. Take these examples:

• Wal-Mart and Tesco have been applauded for addressing climate change throughout their value chains and there is evidence that consumers have responded.

• Upstart Tesla Motors became California’s third-bestselling luxury car in 2013, pushing BMW to speed up development of its own luxury electric vehicle.

• Major retailer Marks & Spencer estimates that its global supply chain accounts for about 80% of its carbon footprint. Through a sustainability initiative called Plan A, M&S sources sustainable packaging from Sweden, works with fish suppliers on marine stewardship, and has set up eco-factories in the UK, Turkey and China, among other activities. It has paid off: In 2010 and 2011 alone, Plan A delivered £70 million in net benefits, which M&S has reinvested in its sustainability work.

Some companies have formed business coalitions, whose strength lies in their ability to scale through the pooling of finances, sharing of best practices, and incubation of innovation.

• Richemont, the world’s third largest luxury goods company, is partnering with IKEA, the world’s largest furniture-maker, to take the lead on developing internal corporate carbon pricing structures in which all of a company’s business groups pay a fee for carbon. That money is reinvested into sustainable energy.

• Denmark-based companies DONG Energy and Novo Nordisk formed a partnership in which DONG Energy helped Novo Nordisk improve energy efficiency in exchange for investment of energy savings into DONG’s wind farm. Novo Nordisk saved about US$12 million between 2007 and 2012. The company’s investments made the wind farm financially feasible.

Alex Niemeyer, a director at McKinsey, sums it up:

“One thing that has structurally changed in the world is that historic supply chains tended to be more stable. They dealt with normal volatility…not radical events like Fukushima or the Iceland volcano. Today’s supply chains need to be set up to deal with big volatility all the time. And that doesn’t just mean risk—that also means opportunity to take advantage when a competitor is affected or when a new market opens up.”

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Impact of Climate Change on Inventory Control and Management

Tue, 17 Jun 2014 00:02:20 +0000

Just a few weeks ago, the mainstream media began to cover climate change in greater depth than ever before. Following a report from The White House on how climate change is affecting every region of the US, most Americans now understand that climate change is real. Interestingly, the retail industry is ahead of most sectors in addressing climate change, a topic we are covering in this blog. In this post, we take a look at how climate change impacts inventory control and management.

Throughout the world, Earth’s changing climate has caused temperatures and sea levels to rise, storms to become more frequent and severe, growing seasons to shift, drinking water to become more scarce and land to become less stable. These changes affect the food supply, health and living conditions of us all, but especially of the world’s poor and near-poor, many of whom produce the garments we wear, mine the raw materials we use and work in the nations where we source key products. Here are three ways these changes affect inventory management.

1) Disruptions in deliveries. Whether moved by train, truck, air or ship, storms and abrupt changes in the weather delay deliveries and sometimes destroy cargo. Buying trips are delayed. Inventory may not arrive when retailers need it.

2) Factory conditions, already bad in many nations, are likely to worsen. Travel to and from work will be more difficult for workers, especially those in the developing world. There may not be enough drinking water or food to sustain workers and maintain their productivity. Disease, particularly malaria, will increase. Worse than merely arriving late, your inventory may not arrive at all.

3) When poverty worsens in response to climate change, other problems are exacerbated. These include increases in conflict, crime and piracy. Black markets, graft and theft raise the price of goods and may also lower their quality. Perishable products like fruits and flowers and fragile items such as china and stemware are more likely to arrive spoiled or damaged.

Actions to Take

1) Review traditional formulas for inventory turn and order control. Identify the 20% of your inventory that drives sales, then reduce or don’t stock the 80% that doesn’t. Narrower inventory is easier to source and to manage.

2) Along similar lines, examine the ways you balance inventory levels against possible stock outs. If you are losing sales because customers won’t tolerate back orders, perhaps you need to accept a lower turn. Figure out which costs more, carrying larger inventories or missing out on sales due to stock outs.

3) Develop multiple sources for each product. Try to identify sources in various parts of the world so that bad weather or armed conflict in one area don’t make it impossible to obtain a popular item.

4) Investigate alternative distribution locations. Adding regional warehouses may raise top line costs, but having secure inventory, reducing fuel costs and offering prompt delivery to customers could increase sales and profits.

5) Ditto for investments in technology that streamline distribution, increase product tracking and decrease the risk of wayward inventory.

Some businesses have taken these or related actions and achieved good results. However, the lion’s share of adaptive innovation to climate change has occurred in the area of supply chain management, which we’ll look at in an upcoming post.

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Impact of Climate Change on Retailing

Mon, 19 May 2014 15:44:42 +0000

4 Lessons in Meeting Consumer Needs and Wants

A number of companies in the retail industry are ahead of the curve on adapting to climate change. This may be because retailers are very close to the end point of the consumption process. They see and learn firsthand from customers what they want and how they use the products they buy. For retailers who have less experience in this area, here are five lessons learned from the leaders about the ways climate is changing consumer needs and how to respond to them.

1) Seasonal merchandise is becoming less seasonal. These days, customers in the global north are likely to need snow shovels in April or running shorts on Thanksgiving. Retailers need to reconsider their ordering patterns and inventory management practices. This is a global challenge felt throughout the developed world This year, even Alaska ran out of snow shovels!

2) Increased frequency of weather emergencies means that people will need to stock up on basic supplies more often. The recent spate of 79 tornadoes in two days in the US Midwest is a good example. People need batteries, bottled water, generators and other survival equipment more often than in the past.

3) Consumer purchasing power may shrink, especially in areas that are hard hit by weather emergencies. People will favor products and companies that sell durable merchandise. They may buy less often, and when they do they will expect quality. Patagonia, a retail leader in responding to climate change, has capitalized on this with a campaign called The Common Threads Partnership. Patagonia pledges to make “useful gear that lasts” and the consumer pledges not to buy what s/he doesn’t need.

4) Consumer awareness of climate change and its causes has spurred demand for sustainable products. A Harris Interactive survey in May 2012 found that 69 percent of American adults purchase green products or services and nearly one third believe such products are the norm and a required expectation. This offers an opportunity for retailers to meet an emerging need. Luxury brand Gucci took note and launched its “Sustainable Soles” line of footwear made with biodegradable plastic. Gucci also offers biodegradable liquid wood sunglasses, which combine wood fibers from sustainably managed forests, lignin from paper manufacturing and natural wax.

Responding to consumers is not the only challenge that climate change presents to retailing. The PwC 17th Annual Global CEO Survey (Feb. 2014) found that more than half of the retail CEOs surveyed (51%) believe that “resource scarcity and climate change” will transform their businesses over the next five years. This compares to 46% of CEOs in all business sectors. A particular concern of retail CEOs is that supply chain disruptions could threaten growth. A whopping 88% said they were either “aspiring to change” or already had a “program underway” to make changes in their supply chains. This will be the focus of a future blog post.

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Will Google Win the Smartwatch War?

Thu, 24 Apr 2014 21:02:46 +0000

Will the company with the best hardware win the smartwatch wars? Or will it be the company with the most data?

Almost everybody agrees that wearable technology will be the next big thing. What is unclear at this point is who will come up with the winning formula for a successful smartwatch. Pundits and industry insiders could learn a lot by looking at what has happened to Blackberry. This popular platform actually incorporated very sophisticated technology when it was introduced. It was left behind in the dust however, when other manufacturers discovered that software was much more important to smartphone customers than the hardware.

Innovative, inexpensive and even free apps turned the modern smartphone into a versatile tool that could do virtually anything. Ten years later, the same thing could be happening with the emerging market for wearable technology. This time, it won’t be the apps that make the difference; it will be how effectively these apps will be able to access and utilize vast amounts of data.

A Data Goldmine

Who has access to the most data these days? One company stands head and shoulders above the rest is Google. Google has access to such an enormous amount of data that they already have the capacity to do things that other companies can’t. This is why when Google announced recently that it was exploring a new line of Android Wear, it caused a lot of speculation within the watch industry.

Imagine a watch with motion sensors and a microphone. It might figure out that you’re dancing and tell you what song is playing. A Google smartwatch could interface with your online calendar and not only remind you about upcoming events, it could also suggest what you might bring to the party, based on what stores are nearby. Google is all about putting data in context. Instead of a long list of Apple style apps, a Google smartwatch might continually track what you are doing and suggest an appropriate response, based on the context of your actions at the time.

Instead of traditional apps, a Google smartwatch will probably be based on a set of actions. This is what Google is already exploring with its innovative Google Glass wearable project. Using context based actions, you could quickly and easily use your watch for calling a cab, exploring a new city, finding nearby friends, or planning an alternate route to the airport. Google’s innovative creative team lives in a world where cyborgs are cool and talking to your gadgets is as normal as striking up a conversation with the person next to you. They want to go beyond technology and create a watch that becomes an extension of you.

Google in the Driver’s Seat?

Just as Apple understood what a new generation of customers wanted better than Blackberry, Google seems to understand what future generations are going to want better than most current technology companies.

The smartwatch wars have just begun and there won’t be a single winner. Companies as diverse as Sony, Apple, Motorola, Samsung, and even watchmaking giant Swatch, are all planning to introduce their own versions of wearable technology in the near future. Anything could happen at this point, but it would be unwise to count Google out. Google has something that other companies don’t. Google has all the data.

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Forget About Tourbillons! Watch Aficionados Finally Embrace Technology

Thu, 24 Apr 2014 16:33:33 +0000

A Brief History of High-Tech Watches

There have been high-tech timepieces for almost as long as there have been advancements in technology. First to become popular in the early 1970’s were watches that displayed the time using LED diodes like the Hamilton Pulsar worn by Roger Moore in “Live and Let Die.” Later, calculator watches, fitness watches, and hiking and adventure watches became popular for a time.

Although some of these timepieces are still prized by collectors, very few were ever taken seriously by watch aficionados. Sophisticated watch fans have always preferred the precision gears, jeweled bearings, and tiny springs found in traditional mechanical movements.

The love of old world craftsmanship is still strong, but there is a new appreciation for technology among fans of luxury timepieces. High-tech timepieces are finally beginning to be taken seriously.

A New Generation of High Tech Watches

The current crop of high-tech timepieces has caught the attention of prestigious watch journals and sophisticated fans with their unique combination of great design, superb craftsmanship, and advanced features. Watches like the Casio Pro Trek PRW6000, the Seiko Astron, and the Citizen Skyhawk AT are getting rave reviews by offering battery-free solar power, atomic clock accuracy, and sophisticated chronograph features in a beautiful, well-designed package that rivals the best high-end mechanical watches.

In a world where your cell phone and computer always display the correct time to the exact second, many younger watch aficionados are starting to expect the same type of accuracy from the watch on their wrist. Unlike earlier generations of technology watches that displayed their information in an ugly plastic case, the latest high-tech watches are beautifully crafted masterpieces.

Seiko’s Foresight and Continuing Excellence

When Seiko introduced the Astron, the first commercially available quartz timepiece in 1969, they said “Someday, all watches will be made this way.” Now Seiko is saying the same thing about a brand new Astron. This amazing timepiece, housed in a stylish titanium case, is powered by the sun, automatically adjusts to the time zone you’re in using GPS satellite signals, and features a perpetual calendar that is always correct until February 28, 2100.

The Astron recognizes all 39 of the world’s time zones by determining its current location using GPS, then comparing that information with an onboard database that divides the Earth’s surface into one million squares, each of which is assigned to a particular time zone. This is something even $100,000 mechanical watches can’t do. Even the most sophisticated mechanical watch will only display 37 time zones with a manual reset.

High-Tech Watch Popularity Continues to Grow

Less expensive high tech watches like the Casio Pro Trek PRW6000 and Citizen Skyhawk AT use radio signals from an atomic clock instead of GPS satellites to maintain split-second accuracy. What they share with the Seiko Astron is great design and superbly crafted cases. Maybe that’s why they are showing up on the wrists of more and more sophisticated watch aficionados.

The latest generation of high-tech timepieces has raised the bar for all timepieces. When it becomes possible to provide more, people tend to expect more. There will always be a place for traditional mechanical timepieces, but these types of watches are already becoming fashion items instead of functional tools. Although the best mechanical watches are already just as collectible as a vintage Ferrari or couture gown, you might not be wearing one to work much longer. They are ultimately museum pieces. When you can wear a precisely crafted, impeccably styled timepiece that runs forever on solar power and tells you the exact time to the millisecond even if you are in the middle of the Atlantic Ocean, why would you want to wear anything else?

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The Emerging Market for Chinese Made Luxury Goods

Mon, 14 Apr 2014 02:30:47 +0000

When Chinese Manufacturers Stop Copying and Start InnovatingChina became a global manufacturing powerhouse largely by copying the ideas of others. The Chinese became experts at creating knock-offs of popular brands and the copies became so good that the luxury labels they copied began manufacturing their own products in China as well. Now, practically every major brand manufacturers many of their products in China.

The tremendous demand for China’s ability to manufacture almost anything less expensively than their competitors in other countries has created a large and increasingly wealthy Chinese middle class. These newly affluent Chinese quickly developed an appetite for luxury and began buying the most popular high-end labels from around the world. As Chinese sophistication and buying power continued to increase, some Chinese designers began wondering why China couldn’t create their own high quality luxury goods.

Chinese pride, a booming economy, and the rise of Chinese creativity, has created a growing demand for products that are not only manufactured in China, but designed there as well. Chinese fashionistas are no longer flocking to the West for the latest trends. They are turning to exciting original collections by a new generation of emerging Chinese designers instead. Designers like Uma Wang have already been profiled in Italian Vogue. Chinese designer Qiu Hao was a recent Woolmark Prize winner, a prize that was previously reserved for European luminaries like Karl Lagerfeld and Yves Saint Laurent.

Chinese Develop Luxury Taste Buds

Everywhere you look, the Chinese are making the transition from fashion followers to emerging tastemakers. The huge changes in tastes and attitudes of the growing Chinese middle class has created opportunities for a new generation of talented Chinese designers who are extremely proud of the “made in China” label. These designers are not satisfied with creating knock-offs. They are determined to be the best on the world stage.

“My heritage is full of beautiful craftsmanship and history with a strong understanding of femininity and luxury,” says influential Chinese designer Huishan Zhang. “It is only a matter of time before the avant-garde taste for individuality in China further evolves into a ‘Made in China,’ homegrown style that will be applauded at home and abroad.”

Luxury Watch Manufacturing in China

Chinese watchmakers were quick to recognize the almost insatiable demand for tourbillon movements by their Chinese customers. About 15 years ago, they decided to meet this demand by manufacturing their own tourbillons. As their expertise in manufacturing tourbillon movements grew, the reputation of their intricate timepieces grew among the world’s watch aficionados. Now, the demand for a Chinese made tourbillon timepiece is almost as high outside China as it is among the Chinese.

High quality Chinese-designed watches and clothing are relatively new to the global market but are growing in importance every day. The Chinese have become self-aware and are proud of their heritage and skills. They no longer are satisfied to make economical goods for the rest of the world. They are determined to design and create the world’s best products and have customers comes to them.

China Produces Its Own Luxury Watch Brands

The Chinese love wristwatches and Chinese watch manufactures have already made the transition to producing high quality luxury products of their own. Although every major watch manufacturer has manufacturing facilities in China, the Chinese are doing something that none of them expected. They are no longer satisfied with copying and are starting to produce their own high quality timepieces filled with genuine homegrown innovation.

The Chinese Fiyta Spacemaster timepiece is prized by collectors around the world and has a reputation that puts it in the same league with popular Fortis and Omega space watches. The limited edition Spacemaster features a superb mechanical moment of Chinese design and includes innovations like an anti-clockwise locking crown to prevent accidental crown release and a unique 8-hour rotating bezel that serves as a life support indicator for the Chinese Feitian EVA spacesuit. Chinese Taikonauts wear this watch on space missions and a growing number of sophisticated collectors are starting to wear them as well.

The Future of China’s Growing Luxury Market

The emergence of Chinese creativity and a new appreciation for Chinese excellence has implications for every manufacturer of luxury goods. The world has already seen the power of the Chinese economy. When the Chinese turn their energies to producing top-quality, original designs, the world better watch out. The Chinese are already learning, as the Europeans and Americans did before them, that creativity is the key to homegrown success. Combine China’s emerging appreciation for the role of creativity with China’s proven manufacturing prowess and you’ve got the recipe for a true luxury powerhouse.

Will “China made” eventually replace “Swiss made” on the dial of your favorite timepiece? Only time will tell.

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Will Swatch Sistem51 Revolutionize the Watch Industry or Be Rejected by It?

Wed, 02 Apr 2014 21:57:10 +0000

Is the watch world ready for a super accurate, maintenance free, “Swiss made” mechanical timepiece that is mass-produced with only 51 parts?

Thirty years ago Swatch revolutionized the watch industry with the introduction of the world’s first line of stylish, inexpensive quartz watches. Now, many say they’ve turned the world upside down again with the introduction of the world’s first high quality, all-mechanical movement assembled entirely by machine.

The innovative Swatch Sistem51 is unlike any mechanical watch ever made. There are only 51 components, compared to over 600 in most modern mechanical watches. The assembly of this watch has been 100% automated, using high-tech robots to weld together the individual components to create a single assembly centered on one screw. This unique timepiece has no regulator and is adjusted for life at the factory using a laser. The all-mechanical movement features a 90-hour power reserve and is hermetically sealed so that no moisture, dust or foreign objects can enter the watch or interfere with its operation.

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The watch is 100% Swiss made, is self-lubricating, and is accurate to 5 seconds a day. Typically a Swiss made mechanical watch with these specifications will cost thousands of dollars, but the Sistem51 is expected to retail for less than $100. This mass-produced mechanical marvel is made using a special alloy of copper, nickel and zinc. It is non-magnetic, so the movement will never need adjusting. Since all the components are attached using a single screw, there is very little wear and tear.

Is There a Demand?

The big question now is whether there is a market for such a watch. Although extremely reliable and accurate, it has none of the snob appeal of its pricy handmade Swiss cousins. The Sistem51 is more expensive than equivalent Swatch quartz watches, yet offers far fewer features than the latest generation of “smart watches” that are starting to hit the market.

What the Swatch Sistem51 does offer is a super accurate, extremely reliable, all mechanical Swiss made movement in an inexpensive plastic case. Like any Swatch design, the Sistem51 can be easily customized with an unlimited number of color variations and face designs. Although the innovative watch has received wide praise for it’s technological innovations, it remains to be seen whether it will be commercially viable.

Does the market really want an inexpensive all-mechanical watch, or will people continue to prefer the exclusivity of handmade mechanical timepieces costing thousands more? Since the technology itself is revolutionary, it would not be surprising to see Swatch incorporate the new movement in some of its own high-end brands. Will there eventually be an Omega, Breguet, or Blancpain watch with a Sistem51 movement? Only time will tell.

Potential Game-Changer

The Japanese and Chinese already offer a wide variety of affordable mechanical timepieces. Currently however, when a watch says Swiss made on the dial, it is usually quite expensive. The breakthrough Sistem51 design might change all that.

If the Sistem51 design turns out to be as reliable as has been initially claimed, it could even cut into the sale of quartz watches. Why would people want to keep changing batteries when they could get a high quality self-winding mechanical watch for the same price?

Although the Swatch Sistem51 was introduced over a year ago at Baselworld 2013, it has only recently become available in retail markets. As people begin to discover this revolutionary new design, it could have a major impact on the entire watch industry. Nobody denies that this watch is a breakthrough. The only uncertainty at this point is whether it will be a commercial success.

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The Domino Theory in Retailing

Wed, 26 Mar 2014 00:14:50 +0000

The Progression of Retail Store Closings

Cold Warriors loved an idea called the Domino Theory, which held that once a country “fell” to communism its neighbors would also fall, like dominoes in a chain reaction. While that didn’t happen in geopolitics, it may be happening in retailing. One retail store closing can trigger a series of events that serve as the tipping point for a host of related financial problems.

At the macro level, the first groups to feel negative effects are real estate investors and commercial property owners. For example, Morningstar estimates that there are 262 unpaid commercial mortgage-backed security (CMBS) loans that are secured by mall properties where JC Penney is an anchor tenant. Ninety-eight of those mall properties are already on Morningstar’s watch list.

Nine of those malls are on the list for a JCP store closing. All are located in small markets where replacement retailers will be hard, if not impossible, to find. If the malls go down, then it’s not just Penney employees who are out of work, but the many more people who work in other stores at those malls, some of which also house vulnerable retailers like Sears, Abercrombie & Fitch and American Eagle Outfitters.

The Community Conundrum

Retail store closings make waves throughout a community. Take Compton, California, for instance. When Circuit City closed its store there in 2008, it derailed revitalization efforts throughout the whole area, which was already in dire economic straits. It wasn’t just the direct effects of the store closing, but the message sent by the closing: business is not good here.

Consumers were affected by Circuit City closings too. The chain generated serious revenue by selling long-term product warranties. It assured warranty holders that their coverage would continue, but if a customer had a problem he would have to travel to a Circuit City outside of Compton. For the similar reasons, gift cards were harder to redeem and returns more difficult to negotiate.

In December of last year, Dominick’s, a grocery chain owned by Safeway, announced it was exiting Chicago. This left some low-income neighborhoods without a full-service grocer, where they had access to fresh, healthy food choices. To top it off, when a new food store wanted to move in to an abandoned Dominick’s, community activists learned that the closed property was encumbered by a restrictive covenant that prohibited another grocer from opening in the space.

Far-Reaching Effects

Further along the domino chain, wholesalers and suppliers are hurt when retail stores close, as are other retailers. Orders are cancelled and consumers who are now living on unemployment can’t afford to purchase anything other than necessities. Goods that people bought routinely when they had paychecks suddenly become luxury items that remain on store shelves.

It’s not fair to blame retailers for all of this. After all, it only makes sense to close stores that are under-performing, and those are most often in areas of high unemployment. In early 2012, for example, Sears Holdings closed 17 Sears or K-Mart stores in three states with substantial unemployment. They included Florida, with a 10% unemployment rate at the time, Michigan, with 9.8% unemployment, and Mississippi, with 10.5% unemployment.

A Cyclical Cycle

Worst of all, it turns out that the retail dominoes aren’t really in a chain at all. They’re in a circle, where each one influences the next and where the negative effects of store closings can build into a spiral that takes everyone further down the economic scale. People lose jobs, which communities can’t replace. These communities gradually become what labor economists call intransigent jobless areas, where the hurdles are high for attracting new business because the consumer base is low-income. This reduced purchasing power translates into fewer places to work and shop, as well as a lower tax base for local government.

In December 2013, the US Bureau of Labor Statistics reported the lowest annual retail sector unemployment rate (7.7%) since 2009, when it was a full 10%. Things are getting better and with the current round of store closings the health of the retail sector overall is improving, but it may still leave bodies on the ground, especially in areas of the country that have yet to show signs of economic recovery.

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Hublot Chairman Accuses Apple of Stealing Watchmakers

Tue, 18 Mar 2014 20:57:11 +0000

Will your next smartwatch say “Swiss made” on the dial?

When Jean-Claude Biver, the head of the Watches and Jewelry division of LVMH and the Chairman of luxury watch brand Hublot, accused Apple of trying to poach some of his best Hublot employees, it started a firestorm of speculation within the watch industry. What was Apple up to? It has long been anticipated that Apple will instantly become a major player in the burgeoning smartwatch category when it introduces its almost inevitable iWatch. Why was the company looking to Switzerland?

Although nobody knows when an iWatch will reach the market, almost everybody agrees that it is coming. With Apple’s design expertise and proven record at popularizing new technology, expectations for Apple’s upcoming smartwatch are high. The market clearly expects something spectacular from the Cupertino giant.

What the Swiss Have to Offer

While nobody expects Apple to include a tourbillon or a moon phase complication in its upcoming iWatch, there is still a lot that Swiss watch experts have to offer a potential smartwatch powerhouse. Watchmakers take metallurgy seriously. For hundreds of years, Swiss watchmakers have been experts at creating entirely new metals and alloys, just to solve a watchmaking problem.

One of these high tech alloys is called Magic Gold, and it was developed by the very Hublot that Jean-Claude Biver says Apple was trying to raid. Magic Gold is a proprietary combination of ceramic and gold that Hublot has used to make watchcases virtually scratch proof. Is it just coincidence that Apple tried to license this special alloy for use in the iPhone 5 in 2013? Later that year, Apple released an all-new gold version of its popular phone and it is still looking for a way to make its cases scratchproof.

Some industry experts say that Apple may want their upcoming iWatch to say Swiss made on the dial. While this is a possibility, it is highly unlikely, since the company has always been extremely proud of its California roots. The term “Swiss made,” which has long been associated with high quality mechanical watches, would hold little value to a customer buying wearable technology. There are no springs and gears in a smartwatch and there never will be.

Swiss Expertise

What is more likely is that Apple is considering opening a new R&D facility in Switzerland. Steve Jobs was always fond of borrowing ideas from other disciplines and incorporating them in Apple designs. “Good artists copy. Great artists steal,” he said once, lending credence rumors that Apple actually is poaching talent from leading Swiss watchmakers.

It makes sense. The Swiss have been experts in manufacturing all sorts of things for hundreds of years. In Switzerland, Apple could recruit from an amazing pool of watchmaking talent. While Apple doesn’t need the Swiss to put a tourbillon in a smartwatch, they do need Swiss process engineering, ergonomics, metallurgy, and miniaturization expertise. Hiring the best talent they can find from well-respected companies like Hublot, might just give them the competitive edge they are looking for.

While it is fun to speculate whether your new iWatch will say “Swiss made” on the dial, the accusations of talent poaching do have serious implications. Watchmaking is a billion dollar industry and the market for wearable technology is potentially even larger. The Swiss should actually be happy that Apple is looking at them. If Apple hires a few watch experts from Hublot, it won’t hurt the industry. Instead, it will probably help. By acknowledging Swiss expertise, Apple is telling the world what watch aficionados have known all along: Swiss watchmakers are the best in the world at what they do.

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America’s Changing Shopping Habits

Wed, 05 Mar 2014 22:39:03 +0000

Why People Buy Watches Differently than they Buy CarsNew studies are showing that people around the world are changing the way they buy things. Increasingly, multiple visits to a series of retail stores to comparison shop are out. Consumers are doing their research on the Internet ahead of time these days and many have already made a purchase decision by the time they arrive at the store. This is especially true when people are buying automobiles.

Hans-Werner Kaas, a senior partner at the prestigious McKinsey & Company consulting firm says that average car buyer visits just 1.6 auto dealerships before making a purchase, down from 5 dealerships only 10 years ago. “This is the most dramatic change we’ve seen in the auto industry and how people buy cars in the last 50 years,” says Kaas.

Simon Soaf, General Manager at Mossy Volkswagen in Carlsbad, California, has witnessed this change himself. “Those days of going to six or seven dealerships to shop for a car are over. It is not going to happen again. Customers are more savvy,” he said.

There are many reasons for this change in buying habits. Cars are still a practical necessity. In a difficult economy, people want to arm themselves with as many facts as they can before they make a decision on an expensive but necessary item like a car, a major appliance, or even a healthcare provider. When money is tight, customers don’t trust sales people any more than they trust Congress. They want to make their own decisions.

Watch Retail Industry Continues to Expand

One product category seems to be bucking this trend. At a time when automotive and electronics dealers are consolidating, watch manufacturers are actually expanding, adding brick and mortar stores at a rapid pace. Just a few years ago, about the only place you could buy a fine watch was at a reputable jewelry store. Now, all the major watch manufacturers are opening their own stand-alone physical stores.

Go to any major shopping mall and you will see impressive brick and mortar stores for well-known brands like Omega, TAG Heuer, Swatch Tourbillon, Officine Panerai, Montblanc, Cartier, Audemars Piguet, and many more. Most of these brands sell through online retailers as well.

The Watch Buying Experience

Is there a reason why people are purchasing watches much differently that they purchase cars? Many experts think it is because watches are no longer a necessity. Nobody needs a watch to tell the time any more. They have their cell phones for that. Watches have become a fun discretionary item. Low to mid-priced watches are considered a fashion accessory now. They are often impulse purchases made to match a particular outfit.

High-end luxury watches are a little different, but buyers still seem to like to do their shopping in physical stores. A luxury watch is a status symbol and buyers often consider themselves to be timepiece connoisseurs. They are a lot like collectors of fine art in this regard. Going into a well appointed store and talking with a knowledgeable sales representative is all part of the process for these high-end buyers.

Watch Buyers vs. Car Buyers

A luxury watch and an economy car can cost just about the same these days. However, while frugal car buyers do research in an effort to find reliable transportation at the best possible price, watch aficionados are more like art collectors. And the fashionistas who are buying more affordable watches just want a stylish accessory that matches their new dress. These shoppers are more concerned with whether the watch is cool than they are with the price.

When watches were essential as timekeepers, shoppers bought them for essentially the same reasons as they bought their cars. They needed a watch to tell the time. The irony of the situation is that now that wearing a watch is no longer a necessity, watches have become more popular than ever.

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What’s Behind Retail Store Closings?

Fri, 28 Feb 2014 00:06:37 +0000

Out of the Malls and Onto the Internet

Most of us who follow the retail industry are aware of the wave of store closings that has taken place over the last few years. Since closings occur intermittently, however, you may not realize that roughly 5,759 stores in the US have shuttered since 2012. These include apparel companies like Jones Group and The Gap, restaurants (Wendy’s, Qdoba, Applebee’s), home furnishing stores (Kirkland, Pier One) groceries (Food Lion, Kroger, Stop ‘n Shop), toy and entertainment outfits (Build-A Bear, Game Stop) and tech companies (Cellular One, Apple). You can find an alphabetical list of all US retail store closings through September 25, 2013 here.

Certainly the Great Recession has something to do with this, but that doesn’t account for the fact that many of the same companies closing brick-and-mortar stores are expanding their online operations. These moves to the Internet have dramatic consequences that reach well beyond employees and consumers to affect communities and related industries, and not in good ways.

Shopping Malls

The obvious example is shopping malls. Most real estate professionals acknowledge that vacancy rates are high in many malls across the country and rents are depressed. Green Street Advisors, an analysis firm that tracks commercial real estate funds, predicts that 10% of the 1,000 largest malls in the U.S. will fail within the next 10 years. Some mall CEOs think that’s a conservative figure.

There’s a website called Dead Malls that tracks those shopping centers that are already abandoned or well on their way. Of the 33 JC Penney stores slated for closing, three are on the Dead Malls site: Muscatine Mall in Muscatine, Iowa, Military Circle Mall in Norfolk, Virginia, and Singing River Mall in Gautier, Mississippi. Macy’s plans to close stores in two more: Fiesta Mall in Mesa, Arizona, and Medley Center in Irondequoit, New York. Abercrombie & Fitch is closing a store in yet another mall on the endangered list, Oaks Mall in Gainesville, Florida.

It appears that these particular malls, along with most of the others listed, while not going gentle into that good night, they are slouching toward oblivion, dragging community spirits down with them. Part of their woes are caused by the oversupply of mall real estate. The US has so many malls that when one closes shoppers can easily drive 10 or 20 miles to another. Add to this the ‘smart growth’ and walkable cities emphases in current urban planning theory and you easily see that the curtain is descending on the malls’ last act.

Malls Repurposed

So what happens to these dinosaurs littering the suburban landscape, becoming eyesores in the communities they once served? Sometimes mall owners just call in the demolition equipment. Occasionally, though, more creative solutions are devised. Although not located in a mall, an abandoned Wal-Mart in McAllen, Texas was turned into the largest, single-story library in the country by Minneapolis-based architects Meyer, Scherer & Rockcastle, Ltd. The conversion plan included space to establish a community gathering place, which serves as an updated version of the town square.

Wal-Mart, once roundly criticized for letting its abandoned stores lie empty to prevent competitors from moving in, now has a subsidiary called Wal-Mart Realty. According to its website, “Walmart Realty’s mission is to find businesses to open in our former stores and clubs and to locate in available property around our stores. At Walmart Realty, we believe we have a responsibility to work with communities to find a use that generates economic growth and opportunity.”

Online Rising

While this is a positive development, it assumes that there are companies interested in opening brick-and-mortar stores, a debatable idea. “If I were thinking of starting a new retail brand right now, I would unquestionably start it online,” writes Jeff Jordan, a partner at Andreessen Horowitz and board member for several online retailers. He points out that online retail will continue to steal business from brick-and-mortar stores and that will place even greater pressure on shopping malls.

Even online retailers that do move offline to open physical stores are doing them as Internet showrooms, where customers view samples and then place orders. This is a stark departure from the traditional retailer that stocks inventory in its stores. Jordan cites two, Bonobos and Warby Parker, that began online and are now employing this showroom model.

There’s a joke going around that says Best Buy, which recently closed 10 stores, has become a showroom for amazon.com. Consumers visit Best Buy, check out the product they’re considering, then go home and order* their preferred model online. I’ll admit that I’m guilty of doing this exact thing when shopping for a high-definition television, not because Amazon had a cheaper price, but because the delivery is so much less hassle than dragging a TV home myself. It’s small conveniences like this — and probably others that are less apparent — that are driving consumers online.

All this does not mean that the retail industry is in trouble. Only that the mechanics of selling are changing. As Bette Davis said, “Fasten your seat belts. It’s going to be a bumpy night.”

*Or order then and there from their Smart phone.

About Gevril Group

Watchmaker and wholesale watch distributor Gevril Group is the exclusive U.S. agent for exquisitely designed and crafted European luxury and fashion watch brands, distributing and servicing some of the best affordable luxury, Swiss and fashion watches. Gevril Group also operates a full-service watch repair, staffed by master Swiss watchmakers. Contact Gevril Group by email or by calling 845-425-9882.

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Is Gucci Losing Its Luster?

Tue, 25 Feb 2014 20:48:04 +0000

When luxury logos lose their luster, can the kings of bling survive?

When the economy imploded in 2008, luxury goods seemed relatively immune to the carnage that the ensuing economic downturn created. Analysts speculated that even though the economy was weak, companies like Ralph Lauren, Tiffany, Coach, and Gucci would thrive because even after the downturn, the rich still had plenty of money left to buy all their favorite luxury items.

All that may be changing however. There are growing signs that luxury logos are losing their luster. While the ultra-rich can still afford their yachts and Ferrari automobiles, a growing group of “affordable luxury” companies are beginning to suffer.

The latest luxury brand to falter is Gucci, the flagship label of Paris based Kering SA. Gucci profits fell dramatically during the fourth quarter of 2013 to 50 million Euros, down from 1.05 billion Euros a year earlier. Kering CEO François-Henri Pinault in a recent CNBC interview said he was unconcerned about the slowdown, but many financial analysts think that Gucci’s stagnating sales growth signals a change in the way consumers view luxury goods.

Luxury Industry Slowdown

The slowdown in luxury sales has been well documented. Around the world, and particularly in China, well-known luxury brands are suffering from what many call “logo fatigue.” As recently as a few years ago, the Chinese couldn’t get enough bling. If it was gaudy and gold, they had to have it. Now, discriminating Chinese shoppers seem to prefer understated luxury and are buying less flashy labels.

A slowing global economy is causing many to change their priorities. Paul Lejuez, a New York-based analyst at Wells Fargo & Co. calls this phenomenon “wallet-share shift.” Instead of buying Hermes scarves and diamond bracelets, they are spending their money on practical items like cars, electronics and home furnishings.

Survival of the Grandest?

It remains to be seen whether this trend will continue. If the economy improves, luxury retailers like Gucci could quickly return to their former glory. If conditions continue to deteriorate, all bets are off. In a declining economy, there will still be rich people, just not as many of them. Luxury companies will be forced to focus their efforts on a much more targeted audience, which will create winners and losers. “The whole ship isn’t sinking,” says Aurora Investment Counsel president David Yucius, “It’s a matter of which brand is winning the fashion trend of the moment.”

Will Gucci and the luxury industry recover in 2014? With the top 2% of Chinese earners accounting for fully one third of all global luxury sales, the fortunes of a very few people could make a big difference. Whatever happens, one thing is certain: customers will continue to evolve, and successful companies will need to reflect their changing needs in the products they sell.

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Signet Jewelers to Buy Zales

Mon, 24 Feb 2014 20:57:00 +0000

Who benefits most when two jewelry juggernauts join forces?

When Signet Jewelers, the parent company of familiar names like Kay Jewelers and Jared the Galleria of Jewelry, acquired the giant Zales Corporation with its well-known Zales and Gordons brands, a jewelry juggernaut was created. Signet and Zales were already the two largest jewelers in the United States before this historic merger. Together, they have the opportunity to become an unstoppable powerhouse that virtually controls the US retail jewelry market.

Jared Galleria of Jewelry Store		Kay Jewelers Store

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Investors have already benefited from this sale, with shares of Zales surging 40% on the merger news. Signet shares also rose 12% to a record 52-week high. The jury is still out on whether this monumental merger will offer the same sort of benefits for customers. Consolidation in other industries has shown mixed benefits. The economies of scale that a larger organization brings often result in lower prices for consumers. These savings come at a price however. A large organization must streamline their supply chain to maintain profitability targets, and smaller vendors are often eliminated. This means that although prices are typically good, consumers often have fewer choices.

According to Signet CEO Michael Barnes, “the addition of Zale to the Signet family is consistent with our long-term growth strategy and leverages our combined operating expertise to create better choices for our customers, new opportunities for our employees and makes us a more attractive partner to our vendors.”

Based on what Michael Barnes has already accomplished with his Signet brands, this means big changes for the Zales Corporation in the years ahead. Signet has already completed a multi-year turnaround program that has returned the corporation to profitability. They will almost certainly use the same strategies to return their newly acquired Zales and Gordons brands to profitability as well.

A Retail Jewelry Powerhouse

The combined companies from this monumental $1.4 billion dollar transaction will operate more than 3,600 stores in the United States, in addition to each brands’ online retail operations. It is estimated that this new jewelry powerhouse will generate annual sales in excess of $6 billion. The company will employ nearly 30,000 people.

The merger, which will be financed by bank debt, other debt financing and the securitization of a significant portion of Signet’s accounts receivable portfolio, is still subject to the approval of Zale’s stockholders and must meet regulatory requirements. Industry insiders expect that the sale will go through however, and the transaction is expected to close later this year.

Since all of the brands involved sell watches, the merger will have definite implications for the watch industry. Consolidation is already a fact of life within the luxury industry, so there will probably be no surprises. Some brands will grow stronger through improved access to a larger customer base. Other fringe brands may be hurt, especially if they are eliminated as a Signet vendor.

One thing is certain. With $6 billion in projected sales, there will still be a lot of people buying fine jewelry and luxury watches.

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Smart Sports Bands Projected to Grow by 350% in 2014

Fri, 21 Feb 2014 01:04:34 +0000

Will the activity trackers of today set the stage for the smart watches of tomorrow, or will they preclude the need for smart watches?

Wearable smart bands, like the Nike Fuel, Fitbit Flex, Jawbone Up, and others, have become incredibly popular during the past year. People from all walks of life wear these fitness trackers now and their popularity continues to grow at exponential rates. Much of this growth is very recent. In the first half of 2013 roughly 200,000 of these wearable smart bands were shipped. In the second half of 2013, that number skyrocketed to 1.6 million. Shipments could reach as high as 8 million bands in 2014 and over 23 million in 2015.

Although these numbers are still quite small compared to the total number of wristwatches shipped, the rate of growth is spectacular. Experts think that there’s a reason why wearable activity trackers have exploded in popularity, while smart watches continue to languish.

Smart Sports Bands Increasing Popularity

The current crop of wearable activity trackers meets a definite need. With today’s increased focus on health and fitness, people want to know how their daily activities impact their fitness goals. These inexpensive fitness trackers meet this need, by providing accurate and timely data about the distance we move, the calories we burn, and even our sleep patterns.

They are also very simple to use and tend to have great battery life compared to typical smart watches. High cost, limited battery life and the lack of useful software have been the primary concerns of early smart watch adopters. The fact that most of the currently available smart watches aren’t stand-alone devices and require a Bluetooth connected smartphone to take advantage of their “smart” features has hindered widespread adoption as well.

Simple, inexpensive wearable activity trackers have none of these drawbacks. The internal batteries in these devices can remain charged for up to ten days. Since smart sports bands are designed for a specific purpose, they are very easy to use. Interestingly, fitness bands are not at all fashion accessories but are used as tools that helps the wearer stay fit and healthy.

Are Smart Sports Bands Here to Stay?

The market for wearable activity trackers is expected to continue its rapid growth in response to society’s increased focus on fitness and maintaining a healthy lifestyle. The real question is whether the next generation of smart watches, including the inevitable iWatch from Apple, will usurp the simple fitness tracker by incorporating a similar set of features.

The jury is still out on this. Clearly, smart watches of the future will be able to track the wearer’s activities just as well as or even better than current smart bands like the Nike Fuel, Fitbit Flex, or Jawbone Up. What’s unclear at this time is whether people will be willing to pay more for the more complex smart watch.

The runaway success of today’s activity trackers has already proved that wearable technology is here to stay. It is expected that there will be one day a strong market for smart watches as well.

How popular will powerful new smart watches from Pebble, Apple, Sony, and Samsung become? That depends on whether people perceive them as a tool like an activity tracker, or a fashion accessory like a traditional wristwatch. If the general public ever decides that wearing a smart watch is cool, the market for these advanced devices will be almost unlimited.

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Salon International de la Haute Horlogerie 2014 Recap

Tue, 04 Feb 2014 18:17:28 +0000

By Roberta Naas

What Really Goes on in Geneva Doesn’t Stay in Geneva

Every year the watch industry celebrates newness and invention at two very important Swiss events: the Salon International de la Haute Horlogerie (SIHH) held in January in Geneva; BaselWorld (held in March in – you guessed it – Basel). Having just returned from Geneva, I have to take a few minutes to reflect on the show.

It was the 24th edition of the SIHH and it has certainly changed over the years. I was there for the first one – when the Richemont Group organized it and a host of non-Richemont Group brands participated. It has since evolved. Now, the Richemont Group is King — with every one of its 12 watch brands represented in grand glory. Also exhibiting are several other key brands, including Audemars Piguet, Greubel Forsey, Parmigiani Fleurier, Richard Mille and Ralph Lauren (which has a partnership with the Group for the production of its watches). Needless to say, this is ultra- high-end watchmaking at its best.

Over the years, though, many other brands have capitalized on the fact that thousands of journalists and retailers descend on the city to see the newest watch treasures that will be making trend headlines for the coming year. Those brands piggy-back on the SIHH –- exhibiting in hotel suites, boutiques and other places around the city. In short, what has happened is the luxury of SIHH is now offset with the dutiful job of running around the city of Geneva for appointment after appointment to see and report on all the other brands, as well. On this trip, which spanned six full days in Geneva, I explored the new timepieces from no fewer than 35 brands. It was an enriching and enlightening experience –- as always.

Outside SIHH 2014 in Geneva		Attendees at SIHH 2014

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So, what were the highlights of the trip? From the fun to the fantastic -– several experiences stand out.

Oxygen Oasis

At one of the top hotels in the city, a haute-horological brand named Breva was exhibiting its two collections of timepieces. Both revolve around tracking weather and atmospheric pressures via barometers and other instruments.

Since the weather in the hotel room was not changing, and because I wanted to actually see the watch work (ever the inquisitive journalist), I braved the hyperbaric chamber that the brand had on hand for demonstration purposes. I am told that for the entire week the brand exhibited there, just two journalists opted to enter the chamber. (Really? Aren’t we there to see the watch work?!).

So, in a surreal experience, I entered into the small chamber, allowed them to zipper me in tightly, waited while the oxygen loudly hissed in, and –- voila — pressed the button on the watch and witnessed a working indicator. Fabulous. (Though I will admit, it got hot in that chamber and I did panic just slightly at the end as they seemed to struggle with one of the zippers.)

Celebrity City

Every year at the SIHH, several brands bring in their brand ambassadors and celebrity friends to share star-studded dinners with attendees. Sometimes these stars are available for interviews, and usually I don’t bother to take too many up on their 15-minute gesture. This year, however, I jumped at the chance to interview screen legend Susan Sarandon. I found Susan to be charming, sincere, eloquent and interesting as she reflected on what time means to her. I was glad I took the 15 minute spot, even though it wreaked havoc with my crazy schedule.

Mishmash Meals

Kudos to Roger Dubuis, a brand that focused this year on blending the tradition of Swiss watchmaking with the turn-of-the-century Steam Punk inspirations and its visionary view of timepieces. Dinner with the brand was held in a steam punk-style building (now converted into a museum) built in the late 1800’s. The room was transformed by the very brilliant design director of Roger Dubuis into a turn-of-the-century marvel –- with chandeliers, china and stemware all flown in from Paris for the event. In fact, the stemware was original from the era and added a delightful twist to the evening. With the theme of looking back, while looking ahead, the room also housed some innovative photography (of people then and now in exactly the same spot as photographed while young), and some unusual sculptures. It was intriguing and inviting.

Roger Dubuis Booth at SIHH 2014		IWC Booth at SIHH 2014

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This year I did not receive the usual half-dozen invitations to other luxe brand dinners (was I forsaken or blessed?), but I was able to spend some real quality time with brand execs at smaller dinners — thank you to Montblanc, Greubel Forsey and Jaeger-LeCoultre for those wonderful evenings (a big shout out to Roberto’s for amazing food). Thank you, too, to Hublot for one of those great nights to recap and relax. As to breakfast and lunch, there was rarely ever time, so thank you to all of the brands that kept me so busy I was able to lose a few pounds on this trip.

Terrific Timepieces

Lest we get all nostalgic over the exhibition spaces, the food, and the fun -– let’s remember why we are there at all: the product. This year did not disappoint! I witnessed some of the most stunning and technically advanced watchmaking. Key trends included amazingly artistic watch dials for women — complete with unusual gemstone treatments, dials made of rose petals –- Cartier stands out here, incomparable enamel and other innovative treatments.

Cartier Watches at SIHH 2014		A. Lange and Söhne Celestial Watch

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Ultra-Thin Watch		Piaget Ultra-Thin Watch

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The skies were calling this year, as well, with so many brands unveiling astronomical, celestial and moon-inspired pieces. The highlight: Van Cleef & Arpels, which actually managed to put the planets in 3D onto the watch dial. Unusual mechanics bloomed anew with brands such as Piaget reinterpreting the typical watch movement and building it into the case (the 900P caliber) to achieve an incredibly ultra-thin timepiece. In fact, the race was on among the brands to break records regarding the thinnest watch in the world.

Indeed, many of the timepieces unveiled this January that will make their way to the individual markets around the world in another six to nine months, stole my breath. But that’s another story.

About Roberta Naas

Roberta Naas is a 30-year veteran award-winning watch journalist. She is the founder of ATimelyPerspective.com and author of five books on timepieces. Roberta travels the world bringing behind-the-scenes news and cutting-edge products to the forefront.

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What’s Killing JC Penney?

Thu, 30 Jan 2014 22:52:18 +0000

Q: What’s Killing JC Penney: Bad Management, E-Commerce or Bad Branding?

A: Yes

Following-up on our article last week, we continue to examine implications of the troubles at JC Penney, which is in the news again this week for altering its poison pill plan to better defend itself against an activist investor takeover. The retailer has been on the ropes for some time now, a situation that was exacerbated by former CEO Ron Johnson’s failure to remake JC Penney by creating a series of boutiques within the larger store.

Losses and Fallout from Store Closings

Current CEO Mike Ullman, who also preceded Johnson in that position, is credited with stemming the chain’s losses, if not generating profits at this point. Nevertheless, analysts say that Penney’s average sales per square foot from all stores are too low to make the company profitable.

Store closings and layoffs at the chain will save about $65 million and will affect customers and employees in smaller cities and towns in 20 states. This is likely to present serious difficulties for those who become unemployed in a slow economy that has yet to pick up in many of the country’s rural and suburban areas. Customers too may suffer, as many of the stores targeted for closing are among the few retail options available.

Then there’s the real estate issue. JC Penney is an anchor store in malls throughout the American heartland. Once those stores go, it will be difficult if not impossible to replace them. Hundreds of aging shopping centers are already in decline. For some, Penney’s departure will be the blow that sends them into bankruptcy. At particular risk will be those malls that also face closings of other retailers, such as The Gap and Abercrombie & Fitch.

These negative effects are likely to cause JC Penny’s already shaky image to decline even further.

Competition From E-commerce

E-commerce is often cited as eroding business at traditional brick-and-mortar stores like Penney. However, the company does operate its own website, so loyalists will still have online access to Penney’s merchandise. In fact, Penney’s customers who prefer to buy online could have easily been doing so for years, which casts doubt on the idea that e-commerce is responsible for the difficulties at Penney — or any other old school retailer.

The term “old school” begins to get to the bottom of things. Although Johnson was not able to revitalize Penney, he may have grasped its underlying problem: lack of store traffic. Before customers can make purchases, you must get them in the door, and that begins with branding.

Branding

If you were asked to describe Penney, what would you say? (We pause here for a moment of silence.) Exactly. For most of us, nothing distinctive leaps to mind. If pressed, we might come up with “good value,” or “reliable,” or even “like Sears.” Some Baby Boomers may recall buying a prom dress at Penney or working there part-time during high school. You see, JC Penney isn’t a bad store. It’s just not on the radar screens of today’s GenX and Millennial shoppers.

Now think about, say, Macy’s. Founded in 1858, Macy’s is even older than Penney, but we don’t think of Macy’s as “old school.” It sells vacuum cleaners, hand mixers and steam irons, yet few people would say Macy’s is “like Sears.” Although Macy’s also announced store closings a few weeks ago, it said there would be an equivalent number of new store openings. In 2012, Macy’s sales per square foot were $184 while Penney’s were $116. At the beginning of today (January 30) a share of Macy’s sold for $54.00, a share of Penney’s for $6.33.

So What’s the Matter With JC Penney?

Bad management? Probably. Online competition? Maybe. Bad branding? Definitely.

Even Emmy-winning talk show host Ellen DeGeneres wasn’t able to attract new customer groups to Penney for the long term. When Ron Johnson brought her on as spokesperson, some conservative groups protested. In response, thousands of gays and lesbians vowed to shop at Penney to show support. Social media came alive with questions about Penney, showing just how poorly many people perceived the retailer.

“What can I buy at Penney’s?” asked a gay man in New York. The reply: “Just buy anything. You don’t have to wear it. Give it to the Salvation Army.”
Columnist Al Lewis in the Wall Street Journal: “Diversity, inclusion, acceptance for all—these are laudable values. The problem is, well, I have never actually met an openly gay person who openly shops at JC Penney.”

Can the Penney’s Brand be Saved?

Unlikely. Brand perceptions are built up over time. It takes many years to change an image, and it seldom works if those changes are dramatic and abrupt. Smart retailers may stick to a successful positioning strategy for years, but they adapt the way they present themselves as their customers and the culture change. Penney’s boxed itself into a corner because it remained relatively the same year after year. When Ron Johnson came along with his changes, loyal customers were repelled while the customers Johnson hoped to attract didn’t have time to become aware of the new Penney.

Meanwhile, CEO Ullman and Penney’s new board — chaired by Arthur Martinez, former Sears CEO (yes, really) — soldier on.

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In Memoriam: Raymond Weil

Thu, 30 Jan 2014 17:02:04 +0000

Watchmaking Pioneer Raymond Weil Dies at 87

On January 26, 2014 one of the true pioneers of the Swiss watch industry passed away peacefully. Born in Geneva, Switzerland in 1926, Raymond Weil was the first in the industry to make luxury watches accessible to people who weren’t born with a personal fortune. This self-made man had the vision and courage to start what has become a beloved and world-renowned brand at a time when the entire Swiss watch industry was in crisis. In 1976, when Raymond Weil’s self-named company was launched, it was a widely held view that inexpensive quartz watches would destroy the Swiss watchmaking industry.

Weil had a different vision, and watch enthusiasts, amateurs and connoisseurs alike immediately praised his beautiful and surprisingly affordable creations. This kind, affable, and generous man was influential in keeping the Swiss watch industry alive at a critical point in its history. As Raymond Weil traveled the world putting together the international network that eventually made his timepieces a familiar favorite around the world, he almost singlehandedly became an exceptional ambassador for the city of Geneva and for Switzerland as well.

Weil’s ongoing love for Switzerland and it’s watchmaking industry led him to serve as president of the Geneva Watchmaker Union, as vice president of the Watchmaking Industry Training Centre, and as a member of the Watchmaking Federation. He also served as president of the Baselworld Exhibitors Committee until 1995.

Raymond Weil’s love of classical music and contemporary art often influenced the watches that his company produced. Over the years, many popular Raymond Weil timepieces, including the well-known Amadeus, Fidelio, Toccata, Fantasia and Parsifal Collections were inspired by the music and composers that Raymond loved.

To this day, the self-named company that this watchmaking pioneer founded remains one of the last independent, family-owned watchmakers in Switzerland. The brand continues to remain in the family, with Weil’s son-in-law Olivier Bernheim holding the position of CEO, Olivier’s elder son Elie, serving as marketing director, and his younger son Pierre as sales director. It is with great sadness that the Weil family announced the passing of their patriarch and founder on Sunday, January 26. They, and the entire Swiss watch industry can take comfort that the brand Raymond Weil launched in 1976 will continue to keep his memory alive for many years to come.

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The Smart Watch Cometh?

Fri, 24 Jan 2014 18:25:18 +0000

by Adrian Herscovici

Why smart watches are not the future (for now)

Who here remembers the cartoon character Dick Tracy? Back in the 1940s, Tracy wore a watch that featured a two-way radio – perhaps the earliest reference to a so-called “smart watch.”

In real life Seiko released the Data 2000 watch in 1983 – a wrist-mounted data-storage device that connected to a special keypad. It was one of the first watches with computing ability and one of the earliest smart watches. Did the Data 2000 change the way people wore watches? No, not at all; nor did any of the smart watches that came later including the Microsoft-developed SPOT (Smart Personal Object Technology) smart watches of the mid-2000s.

Today, after 30 years of development, smart watches are making bigger waves with new models arriving to market at a record pace. They are increasingly useful, wearable computers that work in tandem with our other devices. Smart watches run apps and play media; some already function as phones – much like Dick Tracy.

21st century wrist race

Why the sudden deluge? Surprisingly, it has little to do with demand; rather, the proliferation is due to advancements in technology and access to cheaper components. Oh, that and the fact that tech companies want to cash in, naturally.

But smart watches come with some serious limitations. The biggest is they do everything your smart phones do, and less. A smart watch may assist you in managing your mobile device but it will not replace that device. So why bother? For looks? Doubt it.

Men, for example, already face a limited choice of fashion accessories. Watches are one of them, and a fashion-conscious guy takes his timepiece seriously. Smart watches are too busy trying to become relevant and functional to look sharp (and geek chic will only carry them so far). Furthermore, they require a significant display area, which means they all look more or less similar, relying on a few obvious physical differentiators to set them apart.

Smart watches need to win us over with utilitarian value, with functionality that offers us something more or completely different than what we already have. For now, they are less stylish than a wristwatch and less technologically useful than a smart phone. They defy obvious trends in usage, too, like the proclivity towards larger screens – unlike a smart phone, which pushes the limits of our pockets, purses and attachés, a smart watch cannot grow the size of our wrists.

Impact on mechanical and quartz watches

Among watch insiders and enthusiasts, the talk is of course about the impact of a smart watch revolution on traditional wristwatches, and whether or not it will lead to their becoming obsolete. The fact is, mechanical watches enjoy immense popularity today because they are obsolete. People wear them because they love the artistry and lengthy history associated with mechanical watchmaking.

Quartz watches should also have diminished in popularity by now in our smart-device world: people could easily leave them at home, relying instead on their smart phone to tell time. But people like the way they look, and with annual global sales in the billions, quartz watches seem to have a rather strong following, too.

Smart devices are here to stay; smart watches, well, maybe. (Starfleet, after all, preferred the smart brooch.) In the next several years we will undoubtedly see advancements. If smart watches do become an accepted innovation, they will likely phase in to our lives over time – there will be early adopters; others will wade in when their professional life requires it; and still more when the applications become the norm.

But the time-honored mechanical wristwatch is no danger of disappearing, nor is the ever-practical quartz watch. We like what they represent and the way they look. Smart watches – well, for now, they’re just gadgets.

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Jean-Claude Biver to Head LVMH Watch Division

Thu, 23 Jan 2014 19:40:17 +0000

by Meehna Goldsmith

Jean-Claude Biver Steps in to Replace Francesco
Trapani to Oversee LVMH’s Watches Division

Since 2011 Francesco Trapani has been the leader of LVMH’s Watches and Jewelry division. After two years, he is transitioning out of the role.

Just two years ago in 2011 after acquiring the brands Daniel Roth and Gerald Genta, Bulgari removed the labels from these brands and folded them into the Bulgari name. This decision was based upon too much fragmentation amid the Bulgari watch offerings. By leveraging the high level movements of Daniel Roth and Genta, Bulgari could raise the level and respectability of their watches while keeping intact the beloved and recognized designs of the historic Bulgari brand—which they intended to become their haute horlogerie offering.

Bernard Arnault, CEO of LMVH, publicly credits Trapani with a successful integration of Bulgari’s watches and jewelry department into LVMH’s portfolio. He was also responsible for LVMH holdings Zenith and TAG Heuer. However, sluggish sales tell a bit of a different story. Still, Arnault intends to keep Trapani on as an advisor in the jewelry division and on the Board of Directors.

Bright Future Ahead

Who will take over the Bulgari watch duties, including Zenith and TAG Heuer? Wait for it. None other than the charismatic marketing genius Jean-Claude Biver, now Chairman of the Board of Hublot, which is owned by LVMH. It’s hard to stay red hot for years and across different brands, but Biver was granted the Midas touch. He successfully ran OMEGA, revived Blancpain and did wonders for Hublot, turning it into a cool, yet respected brand in just about 8 years. Nobody doubts that Hublot’s identity of the “Art of Fusion” was a brilliant move that placed the company securely in the mind and heart’s of the public. Personalities such as Kobe Bryant, Dwayne Wade and Usain Bolt are just a small sampling of the celebrities with Hublot watches gracing their wrists.

While Biver focuses on elevating the watches in the Bulgari stable and hopefully giving them the stature of Hublot, CEO of Hublot, Ricardo Guadalupe will continue to run the day to day of Hublot. A close personal friend of Biver’s for over two decades, Guadalupe has been working with Biver since 2001 and helped with the renaissance of the company. Once Biver’s consigliore, the able Guadalupe has been groomed to take over where Biver left off and Biver has extreme trust in his protégé. Plus, if bumps in the road arise, Guadalupe has Biver to call upon as the still acting Chairman of the Board of Hublot.

What will Biver achieve with Bulgari watch properties? If nothing else it will be provocative and stunning.

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Store Closings at JC Penney: An Isolated Case or a Troubling Trend?

Mon, 20 Jan 2014 19:42:40 +0000

In mid-January, JC Penney announced that, in a bid to stem losses, it will close 33 of its stores and cut 2,000 jobs, resulting in about $65 million in savings per year. The announcement came just a few months after former CEO Mike Ullman returned to the retailer in an attempt to patch things up following a disastrous, failed makeover by CEO Ron Johnson, who was ousted in April 2013.

Macy’s Lawsuit

Johnson had attempted to transform Penney’s by remodeling its stores into a collection of boutiques. Not only did this strategy fail to charm customers, it resulted in a lawsuit filed against Penney’s and its would-be partner Martha Stewart Living Omnimedia (MSO) by Macy’s Inc.

Macy’s contended that the Penney’s deal infringed on its exclusive rights to sell Martha Stewart merchandise. In October of last year, Penney’s, now under the leadership of Ullman, scaled back its relationship with Martha Stewart. It agreed to sell 11 million shares of MSO, which it purchased in 2011 for $38.5 million, and to give up its two seats on the MSO board. While this move apparently placated Macy’s to some extent, it is still suing for damages.

Mike Ullman’s Actions

Meanwhile, Ullman has recruited Stephen Sadove, chief executive of Saks, to the JC Penney board and is restoring some of the features that Johnson cut, such as Penney’s popular private-label brands. In November, Penney’s reported its first monthly gains in same-store sales in two years and says it sees rising demand for men’s apparel, women’s accessories and home products. However, as of January 15 of this year, Penney’s had not provided sales data for December 2013, which leaves some analysts wondering if the gains are sustainable.

Other Store Closings

Paul Swinand, an analyst with Morningstar, told Bloomberg News that the closings indicate all is not well, although “it’s also not a massive restructuring.” In fact, the closings represent just 3% of Penney’s stores and 2% of its total workforce. Contrast this with other retail store closings in 2013, such as The Gap, which closed 21% of its U.S. stores (189 out of 889) and Abercrombie & Fitch, which is in the process of closing 18% of its U.S. stores (180 out of 1,014).

There were a number of other retail store closings in 2013, including The Jones Group (closing 170 stores out of 594, or 29%), Blockbuster and Fashion Bug — both of which went out of business — and Barnes & Noble (closing 189 stores over the next 10 years, or 14%). Macy’s announced that it would close five stores, but also open five new ones. In Macy’s case, the closings appear to be a move to generate efficiencies by consolidating some functions and territories.

Are Store Closings a Trend?

Over the past several years, many retailers have struggled with restrained consumer spending, a situation that continued throughout 2013. L Brands Inc. and Family Dollar stores, for instance, cut profit forecasts after a disappointing December, although U. S. retail sales did rise 2.7% overall in November and December. This rise in sales, combined with a closer look at the reasons underlying certain retail closures, seem to indicate that there is not an overall negative trend in the retail industry.

Rather, mature brands and retail stores like Penney’s — some of which have been in trouble for years — are adjusting to a changed operating environment where there are new competitors, including brick-and-mortar stores such as Uniqlo and Joe Fresh, seasonal and temporary pop-up stores, and online membership stores, like One King’s Lane and Rue La La. Changes in technology also play a major role. It’s no secret that brick-and-mortar bookstores and video rental chains have been under pressure for years from online competitors, e-readers and new devices that stream digital music and video.

The New Consumers

Consider too that the Millennial generation has come of age and now constitutes a large proportion of shoppers. These young adults are digital natives whose preferences and habits were shaped by a world that is very different from any generation that preceded them. They are a new breed of customer and the ways they browse, buy and consume require retailers to change some of the ways they’ve traditionally done business. This is natural and we are seeing it evolve before our eyes.

About Gevril Group

Gevril Group is the exclusive US representative for select European watch brands, distributing and servicing luxury, fashion and sports timepieces at a wide range of price points. Gevril Group also operates a full-service watch repair department staffed by master Swiss watchmakers. Contact Gevril Group by email or by calling 845-425-9882.

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Swatch Group’s ETA Galvanic Department Destroyed by Fire

Mon, 30 Dec 2013 20:12:42 +0000

Will a fire at main ETA workshop in Grenchen, Swizerland
decrease the availability of ETA movements in 2014?

When a fire broke out on Sunday, December 29 and totally destroyed the Galvanic Department at Swatch Group’s ETA factory in Grenchen, Switzerland, the first question on everybody’s mind was whether anybody was hurt. The second question was whether the unexpected fire would result in a decrease in the availability of ETA movements, along with price increases in the year ahead.

Luckily, since the fire started at 9 AM on a Sunday morning, the Galvanic Department workshops were unoccupied at the time and nobody was hurt. The jury is still out however on whether the devastating fire will have a lasting impact on the production of the popular ETA watch movements. A trend towards consolidation in the Swiss watch industry in recent years has meant that many manufacturers have stopped building their own movements and rely on components made by the Swatch Group’s ETA division instead.

Since galvanic plating is an essential part of the manufacturing process for many popular movements, the Grenchen fire could have an enormous impact on the manufacture of Swiss watches. Not only does ETA supply the movements for Swatch watch brands like Longines, Omega, Tissot, and Breguet, it also supplies essential component parts for many other manufacturers as well.


Click to Enlarge Image		Click to Enlarge Image

Watch Industry Shakeup?

Since the Swatch Group has already decided to cut back and eventually end the sale of component parts like hairsprings, balance wheels, anchors and anchor wheels to their competitors, any further reductions due to the fire could be devastating. Weko, the Swiss competition authority, has already agreed to let the Swatch Group continue it’s gradual reduction in the delivery of finished movements, beginning with another 10 percent reduction in finished movement deliveries in 2014. This decreasing availability of parts has already had an impact on some manufactures who are still looking for other sourcing alternatives.

Skeptics and industry pundits are already speculating about whether the Grenchen fire will give Swatch the excuse it has been looking for to accelerate its plans to end the sale of component parts to competing watchmakers.

If the Grenchen fire does have a lasting impact on ETA’s manufacturing capabilities, a further reduction in component sales to competitors might be inevitable. If, in the near term, ETA is only able to manufacture enough movements for its own use, other manufacturers who depend on ETA components are sure to suffer.

This loss for Swatch Group comes right on the heels of the company’s victory in its lawsuit against Tiffany, which now must pay Swatch Group $450M in damages. Nobody really knows what will happen yet, but this devastating holiday fire has implications for the entire watch industry.

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Tiffany Forced to Pay Millions to Swatch Group

Tue, 24 Dec 2013 22:55:13 +0000

How Swatch Group and Tiffany & Company turned a “perfect”
partnership into one of the watch industry’s most bitter disputes.When the powerful Swatch Group and luxury retailer Tiffany and Company agreed to join forces to produce Tiffany and Company branded timepieces in 2007, almost everybody thought that the relationship was a win-win situation for both parties. The Swatch Group was the world’s largest watch manufacturer, bringing us many of the most widely recognized high-end brands like Breguet, Blancpain, Harry Winston, Glashütte Original, Omega, Longines, and Rado. Tiffany and Company was one of the world’s most prestigious jewelry manufacturers and retailers. Together, it was expected that these two industry giants could dominate the all-important “jewelry watch” segment of the industry.

What actually happened was a surprise to everyone. When the Swatch Group debuted it’s first Tiffany and Company watch collection at Baselworld in 2009, Tiffany insiders were extremely disappointed. They felt that the collection wasn’t up to Tiffany’s high standards and were reluctant to sell the watches in their stores. Obviously, the Swatch Group didn’t agree. As the world’s leading watch manufacturer, they felt the new collection was exactly what Tiffany and Company needed to succeed.

The Fall of a Potentially Great Partnership

As the strategic alliance between Tiffany & Company and the Swatch Group began to deteriorate, it became apparent that Swatch did not want Tiffany watches to directly compete with its existing luxury watch brands. By designing Tiffany & Company branded timepieces to fit in a distinct market segment that was somewhere in between ultra luxury brands like Harry Winston and Breguet and mainstream high-end brands like Omega and Longines, Swatch believed it was maximizing selling opportunities without cannibalizing any of their existing brands.

Tiffany and Company simply felt that the Swatch designed watches were not as elegant and classy as they should have been and refused to promote them. Relations between the two companies went downhill from there when the Swatch Group filed suit against Tiffany and Company and Tiffany counter-sued. Each party claimed a range of contractual breaches that stemmed from Tiffany and Company’s allegations that Swatch had provided than with an inferior product and Swatch’s claim that by refusing to promote the watches, Tiffany had made it impossible for the Swatch Group to sell them.

After years of legal battles and binding arbitration, the powerful Swatch Group prevailed, winning an unprecedented $450 million dollar judgment against Tiffany and Company for breach of contract. This was only a small fraction of the 3.8 billion in Swiss Francs that the Swatch Group initially wanted in damages. The counter-suit filed by Tiffany and Company went nowhere and was eventually completely dismissed by the arbitration court in the Netherlands.

Lessons Learned

Even though the record $450 million dollar judgment was more money than Tiffany made during the entire prior year, the company will survive. Tiffany learned an expensive but very valuable lesson during this experience. If they want to make watches that live up to their own high standards, they’d better do it themselves. The Swatch Group apparently learned its own lessons as well. The company never abandoned its desire to become a major player in the jewelry watch segment and when the opportunity arose, it simply bought Tiffany competitor Harry Winston outright instead of attempting another partnership.

Now that this monumental dispute is finally over, there is a lesson that companies in every industry need to learn: when powerful companies join forces, there is always a danger in having shared decision-making power.

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The Importance of Mobile Commerce for Retailers

Fri, 15 Nov 2013 18:09:38 +0000

Retail is Going Mobile

The latest trend in retailing is m-commerce, in which the ‘m’ stands for mobile. Increasingly, customers are making purchases directly from smart phones. According to Forrester Research, retail sales made on smart phones reached $8 billion in 2012, comprising 3% of total e-commerce sales. For 2013, Forrester predicts that smart phone sales will rise to $12 billion (5% of total e-commerce) and in 2014 $17 billion (6% of total e-commerce). By 2017, m-commerce is expected to account for $31 billion, about 9% of the entire e-commerce market.

Why is Mobile Going Global?

These m-commerce customers told the survey firm comScore that they buy with their smart phones for a variety of reasons. The top four were:

On-the-go convenience, cited by 63% of respondents
To get special offers and coupons — 52% of respondents
Ease of comparing prices to find best deal — 48% of respondents
Product was not found in a brick and mortar store — 41% of resondents

What Retailers Can Do About It

This preference for m-commerce has some significant implications for retailers:

1. You must be sure that your website — in this situation, referred to as a mobile site — is optimized for the small screen, whose average size is about 2.5 x 3 inches.

1. You should also offer free ‘apps’ — short for applications — for all the major smart phone operating systems. [An app is a small piece of software that is downloaded to a mobile device to facilitate online activities.] Pay special attention to developing a good app for Apple’s iOS, since iPhone owners do substantially more mobile shopping than owners of other brands.

1. You may also want to investigate selling watches and other products via a virtual store within one or both of the two most heavily trafficked m-commerce sites, eBay and Amazon. Consider this: eBay receives 6,400 unique monthly visitors, each of whom visits the site an average of 7.5 times for an average of 10 minutes per visit. Amazon is close behind, with 5,824 unique monthly visitors, each of whom visits an average of 5.6 times per month and remains on the site for about10 minutes. Some major retailers sell on these sites, including Target on Amazon and Brookstone on eBay.

If you sell retail from temporary locations, such as outdoor kiosks, pop-up stores or Christmas village shops, there are m-commerce products for your smart phone that make selling more convenient. For example, a company called Square makes a small device that attaches to your smart phone and enables it to take credit cards. There’s no need for card machines or electrical access. Just slide the customer’s card through the Square device. It will record the sale, send an electronic receipt to the customer’s phone and that’s it.

An interesting mobile development for watch retailers is the budding popularity of smart watches, which are predicted to be big for 2013 holiday gift-giving. Several brands are already on the market, although there aren’t many apps available at this point. You can read all about the new smart watches at SmartWatchNews.org, and perhaps be one of the first retailers to create an app for these novel devices. (Very Dick Tracy.)

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US Postal Service and Amazon Team Up to Inaugurate Sunday Deliveries

Thu, 14 Nov 2013 20:59:23 +0000

Amazon Makes Two-Day Deliveries a 24/7 Promise

For the first time ever, the world’s largest Internet retailer will now be delivering orders on Sunday. In an unprecedented partnership with the US Postal Service, Amazon.com has started offering its online customers Sunday deliveries in select US markets. The new Sunday delivery service has already arrived in New York and Los Angeles, and Amazon plans to expand it to a large portion of the US population in 2014, including Dallas, Houston, New Orleans and Phoenix.

Members of Amazon’s popular Prime Service will pay nothing extra for this new delivery option. They can now buy products on Friday and get Sunday delivery for free. Non-Prime members can also take advantage of free Sunday delivery on orders of at least $35.

Saving the US Postal Service?

This innovative partnership with Amazon is a welcome new source of revenue for the financially struggling US Postal Service. The fastest growing segment of our business is the package business,” Postmaster General Patrick Donahoe said. “The future of package delivery is a seven-day-a-week schedule. We’ve got the capacity to do it.”

Could private companies like Amazon help the US Postal Service become profitable again? It’s entirely possible. The postal service already expects to deliver 420 million packages this holiday season. This represents a 12% increase over last year, and the new partnership with Amazon could significantly increase these numbers.

Amazon Getting Even Quicker

Amazon is committed to service. It has been spending billions of dollars building new warehouses around the world so it can deliver products more quickly. By offering seven-day-a-week deliveries, they can keep these sophisticated warehouses working for customers on a 24/7 basis, becoming even more productive in the process.

“The three big pieces of growth for us are selection, lower prices and speed,” says Dave Clark, Vice President of worldwide operations and customer service for Amazon “Adding an additional day to our delivery schedule is all about speed. Now, an Amazon customer can order a backpack and a Kindle for their child on Friday and be packing it up on Sunday for school on Monday.”

Sunday deliveries will benefit Amazon, the US Postal Service and customers everywhere. It is a win-win for everybody and you can only wonder why nobody thought of this before.

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Swiss Citizens to Vote on Limiting Executive Pay

Fri, 08 Nov 2013 17:57:13 +0000

Will Switzerland Remain the World’s Watch Capital
If it Can No Longer Attract Top Executives?

The Social Democratic Party of Switzerland has collected more than 100,000 signatures in support of a referendum to limit Swiss executive salaries to 12 times those of a company’s lowest-paid employee. This would mean that nobody in a corporation could earn more per month than the lowest paid employee makes in a year.

According to Swiss law, this referendum can now be put to a vote of the Swiss people. Other European countries have already made attempts to limit corporate compensation, but the new Swiss initiative, if approved by voters, would institute more sweeping compensation changes than those seen to date in the European Union.

Harmful Side Effects?

Thomas Daum, director of the Swiss Employers’ Association, worries that these new rules, if enacted, would do serious damage to Switzerland’s attractiveness as a location to do business and could harm the country’s competitiveness by making it difficult for companies to attract top talent. “Interference like this would be very dangerous for the future success of Switzerland,” said Daum. “It should be up to companies and employers to design their own wage structure.”

A poll taken earlier this month by Isopublic showed 49.5% of respondents were in favor of the new initiative to limit executive pay. Top salaries at the largest Swiss companies were approximately 93 times those of the lowest-paid workers in 2011, and this growing wage gap angers many voters. There’s another side to this coin, however. One of the reasons for the resurgence of Switzerland as a global manufacturing center has been the ability of Swiss industry to attract the top talent from around the world with competitive salaries.

Effect on the Watch Industry

Switzerland currently has a well-deserved reputation as the watch capital of the world, with many of the industry’s most prestigious brands headquartered in the country. If salaries were capped, many of these companies would lose the ability to attract and retain the top-tier talent that allowed them to achieve their success.

This is a serious concern to Swiss Economics Minister Johann Schneider-Ammann, since some Swiss companies are already moving factories and manufacturing facilities offshore to control costs. “If salaries were fixed, Switzerland would lose a very successful model of setting salaries.” Says Mr. Schneider-Ammann. “Pay negotiations between unions and management, a traditional Swiss practice is preferable to government involvement in the process,” he adds.

In a global economy, any industry is free to locate wherever it feels is the most advantageous to their business model. For many years Switzerland has been a very desirable location for the watch industry. This could change quickly though if top Swiss watch companies lost the ability to attract and retain key executives. Some of these companies might decide that to stay competitive, it might be better to move their entire operation somewhere else. If the company leaves, so do the jobs for workers that the company employs. Swiss voters will soon have to decide if limiting executive pay might be limiting their own employment opportunities as well

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Couture Las Vegas Severs Ties with Watch Journal

Tue, 22 Oct 2013 20:55:07 +0000

Couture Las Vegas Terminates Watch
Journal’s Popular Couture Time Watch Event

For the past three years, Couture Time has been a popular show-within-a-show at the annual Couture watch and jewelry event in Las Vegas. Couture Time, sponsored by the prestigious Watch Journal Magazine, was thought by many to be the most important watch event in the United States.

Glen Bowen, publisher and editor-in-chief of Watch Journal, conceived of the Couture Time event as an environment where leading timepiece brands could meet face-to-face with leading retailers. For three years, that’s exactly what happened. Couture Time by Watch Journal, held at the Wynn Las Vegas Hotel in conjunction with Couture Las Vegas, became an essential destination where the world’s top luxury watch brands could meet America’s premier jewelers and watch retailers.

The centerpiece of this weeklong event was the annual Couture Time Awards. This highly regarded watchmaking competition was the only event of its kind in the United States and provided a unique showcase for exhibiting watch brands at the show.

All that ended when Glen Bowen announced on October 3rd that Watch Journal Magazine’s three-year partnership with Couture had ended. In an open letter to participating watch brands, Bowen stated, “I would like to take this opportunity to thank you for you’re past participation in Couture Time by Watch Journal. It has been a pleasure to work with each of you and your teams and to help you get the most out of the show. Likewise, it has been a privilege and a pleasure to partner with Couture to create Couture Time by Watch Journal as a very special venue for watches.”

Effect on Watch Industry

The absence of Couture Time at the annual Couture show will be a big disappointment to many in the watch industry. Gevril Group President Samuel Friedmann, a regular Couture exhibitor, feels that the new owners of Couture Las Vegas didn’t give the show-within-a-show concept enough time. “Many American retailers do not make the expensive trip to Baselworld,” says Friedmann. “Couture Time and Watch Journal gave these people another alternative. If Couture had a little more patience, I am convinced that the watch show would have grown tremendously and become a major draw for both Couture and the entire watch industry.”


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One can only speculate why Couture chose to sever its relationship with Watch Journal and discontinue the popular Couture Time show-within-a-show. For the over 80 watch brands that regularly attended the annual Couture show, Couture Time was an essential component of the Couture experience. Watch Journal Magazine is highly regarded as an industry authority by many watchmakers and the magazine’s participation gave Couture Las Vegas even more prestige within the watch industry.

It is too early to guess the extent to which the absence of Couture Time will impact the 2014 Couture show. Couture is still one of the important trade events of the year for North American jewelry retailers, but the loss of the Couture Time show-within-a-show will not go unnoticed by the watch industry.

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Swiss Customs Authorities Impound Over 5,000 Counterfeit Watches

Thu, 03 Oct 2013 18:46:22 +0000

The Federation of the Swiss Watch Industry Continues to Fight
Counterfeiting With a Record Seizure at the Zurich Airport

Forgeries have been a major problem within the watch industry for hundreds of years. Unfortunately, recent advances in technology have made the problem even worse. In today’s world, it is easier than ever to make realistic copies of famous designs. Swiss watchmakers are being hit particularly hard by counterfeiting, since a flood of fake watches undermines the well-deserved reputation for innovation, perfection and expertise that the words “Swiss Made” represent.

To combat the growing counterfeiting problem, The Federation of the Swiss Watch Industry has mounted an aggressive effort to identify counterfeiters and seize the fraudulent goods they produce.

On September 30, 2013 the Federation announced that customs officers at Switzerland’s Zurich International Airport had impounded more than 5,000 fake watches in one of the largest postal seizures ever made in Switzerland. Between August and September 2013, customs officials impounded nearly 9,000 counterfeit items, including more than 5,000 watches. The counterfeit goods were initially shipped in a number of consignments, all originating from the same source in Greece. The fake watches were in transit to Spain and Portugal, and could have ultimately entered the American market.

Vigilance Required

According to watch industry insider and Gevril Group founder Samuel Friedmann, these new seizures by Swiss authorities make it more important than ever to be vigilant when purchasing a fine timepiece. “You need to always make sure you know who you are buying from,” says Friedmann. “There are many reputable retailers, but it doesn’t hurt to be careful. The more desirable the timepiece, the more people who are going to try to copy it.”

With watches continuing to grow in popularity as essential fashion accessories, the incentive for counterfeiters to sell their fakes is expected to continue unabated. The sad truth is that as long as people continue to buy cheap copies of their favorite luxury watch brands, somebody will continue making them.

Be a Part of the Solution

A number of international studies have already demonstrated clear links between organized crime and counterfeiting. “Anyone who loves fine watches needs to help combat the counterfeiting problem by never knowingly purchasing counterfeit goods,” says Mr. Friedmann. “There is real value in the expertise and craftsmanship that goes into the production of a genuine Swiss watch and we need to do everything we can to preserve that value.”

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The Transformation of Morellato Group and Sector Watches

Mon, 30 Sep 2013 19:34:17 +0000

How Italian Styling and Swiss Precision Became
A Recipe for Success for Massimo CarraroWhen Massimo Carraro took over the family watchstrap business from his father and two business partners in 1990, he had big plans. Carraro wanted to create the most important all-Italian watch and jewelry group in Europe. Initially, many industry watchers thought Massimo’s bold vision was unrealistic, but 25 years later, it appears that he has achieved success.

Through a series of strategic acquisitions, Massimo Carraro has been able to transform Morellato, a small watchstrap company that generated 6 million Euros in sales, into a 120 million Euro powerhouse with over 1200 employees. Morellato is now a highly regarded watch manufacturer and the Morellato Group acquisitions include famous names like Sector, Philip watch, Bluespirit, and Pianegonda. In addition, the group holds licenses for Cavalli, John Galliano, Maserati and Miss Sixty.

Sector Watches

Sector Watches have been one of the most visible components of Massimo Carraro’s success story. This stylish and innovative Italian luxury brand exhibits all four of the essential qualities Carraro knew would be essential for his vision to be realized. Sector’s popularity has been a result of innovation, quality, design excellence, and value. By reinterpreting the entire concept of luxury and turning it into an expression of a person’s personal dreams and lifestyle choices, Carraro has been able to turn brands like Sector into something that Europeans increasingly want on their wrist.

“Sector No Limits”

Ever since the brand was launched in 1973, Sector Watches has been associated with the challenges of extreme sports. The brand’s “Sector No Limits” theme became the rallying cry for athletes to challenge their own abilities and overcome and win their own personal challenges.

Sector timepieces now encompass a complete range of exciting and technically advanced racing, marine, mountain, action, and adventure watches. Top athletes like current MotoGP World Champion Jorge Lorenzo, and international BMX Champion Alex Barbero are now part of the Sector No Limits team. By embracing the freedom expressed through a passion for adventure, Sector Watches have become an essential part of an active lifestyle.

Will these popular Italians be coming to the United States in the near future? With Massimo Carraro’s ambition and compelling vision, don’t be surprised if you soon see your favorite Sector watch in a store near you.

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The New Samsung Galaxy Gear Smart Watch

Mon, 16 Sep 2013 19:23:26 +0000

Is Samsung’s Galaxy Gear Smart Watch
The Next Big Thing, or Just a Waste of Time?When Samsung introduced the Galaxy Gear on September 5th, 2013, many industry pundits said the company’s innovative new smart watch signaled the beginning of a new era in wearable technology. At first glance, the Galaxy Gear certainly is impressive. The 2.6 ounce smart watch can make phone calls, surf the web, and even take picture with a built-in 1.9 megapixel camera. A built-in speaker and voice activated operation allows users to make hands free calls directly from their wrist.

Will Smart Watches Catch On?

The unanswered question is whether there is a market for devices like the Galaxy Gear. It is clear that many people think there is. Sony has already introduced a smart watch that syncs with Android phones and will soon introduce another smart watch that can be used as a second screen for its Xperia Z1 smart phone. Tech giant Qualcomm has developed a new connected wristwatch called the Toq. And startup Pebble is already taking orders for it’s innovative e-paper watch, funded entirely through the popular crowdsourcing site Kickstarter.

The Europeans have entered the smart watch arena as well, with the fashionable Italian designed I’m Watch. The latest entry into the smart watch race is automaker Nissan, who recently introduced their Nismo watch, which can capture the wearer’s biometric data and even monitor vehicle performance, at the Frankfurt Motor Show.

The elephant in the room, of course, is the long rumored iWatch from Apple. All these new devices have the potential to revolutionize personal communications. Just imagine a device you could wear on your wrist that could establish your identity and eliminate the need for passcodes. Or how about paying for gas just by waving your watch at the pump? A smart watch could easily track your workouts and monitor your physical activity. Of course, all these innovative watches would also tell the time with near perfect accuracy.

How Will Smart Watches Affect Your Favorite Watch Brand?

Is all this innovation enough to motivate watch aficionados to abandon their favorite Fortis, Rolex and Versace timepieces? Probably not. Watches have become an important fashion accessory for both men and women and it is unlikely that technology will trump fashion any time soon. Since the market for fine timepieces continues to expand, it is very likely that there is a market for traditional timepieces and smart watches. The growing popularity of wristwatches as a fashion accessory will probably ensure that there is a market for Samsung’s new Galaxy Gear and a host of other innovative smart watches that will appear in the near future.

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For Retailers, Amazon Can be a Real Jungle

Tue, 10 Sep 2013 20:07:58 +0000

by Maggy Michaels Durrenberger

Don’t be dazzled by Amazon’s customer base of 160 million or eBay’s claims of 233 million global customers. The third-party (3P) online sales environment is not for every retailer—or every product. Those who take the time to look over the terrain may just decide to cancel the safari.

Beware of Uncharted Territory

Navigating Amazon is not a simple matter. After a time-consuming and often complicated entry process, some products may fail to list. The larger the inventory, the tougher it will be to locate and fix the error. You will need to match your products to the “best” listings, select the “right” key words, and win the Holy Grail of Amazon—the little blue Buy Box that means the highest visibility, the most searches and the most sales. Amazon is mysterious about the variables leading to this prize but among them are positive seller standing, customer feedback, low price, consistent availability, high volume, low refund rates and low returns.

The Natives are Restless

While Amazon and eBay both operate large online marketplaces, Amazon became number one years ago—largely on the momentum of FBA (Fulfillment by Amazon), a service that stores and ships products and even handles customer service. Recent FBA changes are meeting with angry protests from Amazon sellers who say that sharp fee hikes cut deeply into their slim profit margins. The new FBA long-term storage policy is forcing some sellers to pay Amazon to destroy their year-old merchandise because Amazon would charge so much more to return it to them.

Major brands like Ralph Lauren, Hugo Boss and Guess are furious about unauthorized 3P sellers on Amazon that are pricing their merchandise below the minimum set for the label. Even the “little guy” who periodically sells items on Amazon can end up screaming. If Amazon runs an automated check on a seller that generates a false-positive for fraud, the seller account is immediately closed without explanation—or recourse. eBay at least provides customer service contacts, online chat and email options for resolving such issues. Not so in the jungle of Amazon.

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Ensuring Brick-and-Mortar Retail Success in a Digital World

Tue, 27 Aug 2013 19:47:45 +0000

by Maggy Michaels Durrenberger

Sustaining a booming retail business has always been challenging—even before the onslaught of online sales upped the ante of competition. Today’s multi-channel world may seem daunting, but brick-and-mortar still maintains the upper hand of its inherent strength: local and individual relevance. More than ever before, physical retailers are learning how to delight and even surprise their customers with experiences that nurture loyalty and turn them into “walking advertisements.” Let’s glance over a few of the ways they are creating opportunities for their customers to truly love shopping.

Know Your Customers

From the moment they cross the threshold, customers need to sense that their preferences, needs and desires are a priority. Online sellers can offer virtually unlimited choices, but brick-and-mortar has the ability to offer the right choices. Particularly in higher-end retail environments, customers appreciate and grow to rely upon a selection of relevant, quality merchandise that has been curated by a discerning retailer. They want to see, touch, compare, ask questions—and trust the answers. Consider exclusive rewards for the most loyal customers. Several luxury retailers including Bloomingdale’s and Neiman Marcus invite the frequent users of their store credit cards to private sales and fashion shows.

Don’t Be Boring

Smart retailers are beginning to plan and manage every detail of their business from a perspective of ingenuity and imagination. They look for ways to pop, sizzle, differentiate. At the same time, they are awakening to the power of the occasional “Wow!” Psychologists maintain that memorable customer experiences are created by the emotional intensity of specific moments, not the overall experience. A one-time Fresno, California-based jeweler, would actually sprint over to a nearby floral shop and return with a dozen roses if he overheard that a customer was celebrating an anniversary or birthday.”

Be Authentic

The single most powerful advantage of brick-and-mortar over online sales is the most obvious: the opportunity to make a personal connection. Advertising attracts traffic but it will always be the credibility, trust, value and personal pleasure associated with the shopping experience that brings a customer back again and again.

Smart retailers empower their sales agents with exceptional training programs but they also look for ways to motivate their employees to remain focused on creating an outstanding customer experience—not just a sale. That’s why Nordstrom customer service enjoys iconic status. Forrester Research, Inc. Principal Analyst Kate Leggett calls it a great business strategy. “They treat it as a way to influence the top line. It helps with the repurchase rates and recommendations.”

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Audemars Piguet Sues Movado and Tommy Hilfiger

Mon, 26 Aug 2013 18:25:03 +0000

Is it just a coincidence that the Tommy Hilfiger Elon bears a
striking resemblance to the Audemars Piguet Royal Oak?As long as there have been popular watches, there have been people who try to copy them. Not only are replicas of famous luxury watches sold openly on the Internet, there are also numerous manufacturers who try to mimic the features of high-end watches at a much lower price point.

With prices ranging from ten thousand to well over a million dollars, the Audemars Piguet Royal Oak is a frequent target of copycats. Some of these copies manage to stay under the radar, but when a major watchmaker like Movado produces a Royal Oak look-alike, it’s not surprising that Audemars Piguet would notice.

Audemars Piguet Files Suit

In papers submitted on August 13th in Southern District of New York Federal Court, Audemars Piguet filed suit against the Movado Group and Tommy Hilfiger, accusing the two noted brands of “blatant copying” of its Royal Oak watch. An Audemars Piguet spokesperson says that the company “has repeatedly protested, in writing” the sale of the Tommy Hilfiger Elon watch, which Movado produces under a licensing deal with Hilfiger. According to Audemars, the Elon bears a striking resemblance to the much more expensive Royal Oak.

The lawsuit charges that that there is a great danger of consumer confusion, which could take place after the sale, and that the look-alike watches could even impact Royal Oak sponsorships. Court papers note that the Tommy Hilfiger Elon is identified with the Tommy Hilfiger logo, but says the labels are “small and not easily discerned.”

Movado and Tommy Hilfiger have declined to comment on the lawsuit, which stipulates that Movado destroy all existing Elon watches and ad materials, as well as pay unspecified punitive damages.

Lawsuits in the Watch Industry

This isn’t the first time major brands have gone head-to-head over similar designs, and it won’t be the last. Watches have become an essential fashion accessory and there will always be somebody who promises the allure of an expensive brand at a much lower price. Since the Royal Oak isn’t the only watch on the market with an octagonal case and a screw down bezel, it is unclear at this point how this lawsuit will be resolved. Movado and Tommy Hilfiger might even file a countersuit. That’s just the way the watch industry operates these days.

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Versus Watches Stolen at WWD Magic Trade Show Show Las Vegas

Fri, 23 Aug 2013 17:53:42 +0000

Thieves Prove that Versus Watches Are The
Hottest Thing at WWD Magic Trade Show 2013Everybody knows that Versus watches are one of this season’s hottest fashion accessories, but seven of these fashionable timepieces are now quite literally too hot to handle. The watches were stolen when thieves broken into a locked showcase at the Versus booth during the recently concluded WWD Magic trade show in Las Vegas.

Versus Display Case WWD Magic Trade Show – Before Theft

According to Kari Allen, President of Versace Timepieces USA, the incident happened sometime during the evening of August 20 when an unknown thief stole seven very desirable Versus watches with an undisclosed retail value from a locked display case after the show had officially closed for the day. “We really need to catch the thief,” says Allen, “because we are so careful with our distribution and we don’t want these watches to end up in the wrong hands or stores.”

Allen hopes that police will be able to recover the stolen watches. “There’s certainly no need to swipe these watches,” says Allen. “The fashion world is well aware that the Versus Versace brand is already a steal.”

These trend-setting timepieces are a popular, and very affordable way to experience the unmistakable allure of Versace. The trendy Versus label has come to represent the rock ‘n’ roll soul of Versace and the fashion world loves it.

Versus will be back with more hot new designs at THE WWD Magic Trade Show 2014, but hopefully none of them will be too hot to handle. ”We’re glad people like us,” says Allen, “but we’d prefer that they get their Versus watches from an authorized Versus Versace dealer.”

Gevril Group US and Caribbean Agent for Versus Watches

Versus Watches is represented in the US and the Caribbean by Gevril Group. Contact us by email or by calling 845-425-9882.

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Are Brick-and-Mortar Stores a Dying Breed?

Tue, 13 Aug 2013 19:32:38 +0000

by Maggy Michaels Durrenberger

“Absolutely not” is the short answer. Yes, the rate of online sales continues to climb each year. But let’s not leap into an abyss of despair by interpreting that trend as the inevitable death knell for the physical retail store. The U.S. Census Bureau News reported that e-commerce represented only 5.5 percent of total sales in the first quarter of 2013. That means brick-and-mortar retail is still doing 94.5 percent of the business.

Visionary Apple Returns to Brick-and-Mortar

The disruptive nature of technology will continue to impact and shape our world, but the power of technology is not without limits. With all the things it can do, the human experience is completely missing. That’s why Apple shocked the world back in 2001 when it opened physical stores across the nation. After all, electronics was one thing that most people were happy to buy online. But Apple knew better. By tightly managing employee-to-customer interactions, along with every detail of the store, Apple was wildly successful at creating a fun and casual customer experience.

Will Behemoth Amazon Follow Suit?

So many rumors were flying around about Amazon opening physical stores that PBS talk show host Charlie Rose asked the question directly to CEO Jeff Bezos last November. Bezos said, “The answer is we would love to, but only if we could have a truly differentiated idea.” Keep in mind this perspective comes from the kingpin of online retailers. The phenomenon of Internet marketing is barely out of diapers and yet a few of the giants are already recognizing its shortcomings.

The Call is Clear: Do It Better

The real challenge facing brick-and-mortar stores, particularly those on the higher end, is the ability to respond creatively to today’s new multi-channel world. Saving a few dollars is not going to be the highest priority for many potential buyers. More than ever before, the physical retailer needs to create value-added, pleasurable shopping experiences that keep customers coming back.

Macy’s CEO Terry Lundgren summarized it well in a Reuters interview when he said, “It’s clear to me that the consumer likes shopping online. I am focused on [this]: how do we make them feel as comfortable and ready to buy in our stores as they do online?”

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The Internet Sales Tax Debate Continues

Mon, 12 Aug 2013 18:11:50 +0000

Is an Internet Sales Tax a Solution to a Problem That Doesn’t Exist?

With a stagnant economy and declining revenues, national, state, and even local governments are actively looking for new sources of income to fund government operations. One of the first places legislators look is the Internet. Although online shopping is still in its infancy, its growth has been nothing short of spectacular. The Bureau of the Census estimated there were $4.1 trillion in retail and wholesale transactions conducted over the Internet in 2010 and now everyone wants a piece of this pie.

Government entities at every level see online sales as an enormous new source of potential revenue. As their efforts to enact legislation to tax this new revenue stream increase, they have mounted a massive PR campaign to convince their constituents that taxing online businesses will level the playing field and offer significant benefits to traditional “brick and mortar” businesses in their districts. Large retailers like Walmart have jumped on this online taxation bandwagon, because they already have to charge tales tax on their online transactions anyway, largely as a result of having a physical presence in almost every state.

The Effect on Small Online Business

It’s a completely different story for smaller online retailers. The so-called Marketplace Fairness Act could be devastating for these businesses. The Marketplace Fairness Act represents a radical departure from existing tax law. If this legislation were to become law, individual states could begin to collect sales taxes on transactions that take place outside their borders. This is a significant expansion of current state taxing authority and is fundamentally unfair to smaller businesses.

83% of online sales currently come from “Big Box” retailers like Walmart, Best Buy, and Amazon. These companies already have a physical presence in most states and do collect sales tax on Internet sales. That’s why even though large retailers generally support the concept of an online sales tax; it could still hurt thousands of start-ups and smaller retailers.

These small businesses and an increasing number of their legislators now think that it would be an administrative nightmare for smaller business to comply with complex online sales tax laws, since each state and municipality can make their own rules. With thousands of different tax jurisdictions, each imposing their own tax rate, it could be extremely difficult for sellers to deal with a different set of rules for every out-of-state buyer.

Will The Marketplace Fairness Act Pass?

It is becoming increasingly clear that an Internet Sales Tax may be a solution to a problem that doesn’t even exist. After thirteen years of shopping online, these purchases still only represent 6% of total retail sales. In most jurisdictions, the traditional sales tax base is still solid.

Despite strong bipartisan support in congress, the Marketplace Fairness Act still faces a number of significant hurdles. The biggest of these hurdles is that an increasing number of people now believe that empowering states to collect sales taxes on transactions outside their own borders represents a radical departure from current tax policies and is fundamentally unfair. Rep. Morgan Griffith and Speaker John Boehner both predict that the Marketplace Fairness Act will not pass on the House floor.

With online sales continuing to grow at an astounding 16% a year, online taxation is not an issue that is going away soon. State and local governments still want a share of this lucrative pie. The real question now is whether it is fair to collect taxes to pay for local and state governments from a national audience. The jury is still out on this fundamental question.

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Can Home Shopping TV Channels Transform The Way We Sell?

Tue, 06 Aug 2013 21:21:19 +0000

What Watch Retailers Can Learn From Home Shopping TV Channels

Now that people are becoming more comfortable with non-traditional ways of buying their favorite things, home shopping TV channels, such as ShopHQ, are experiencing unprecedented growth. As these new sales channels grow more popular, merchants and retailers are learning that the conventional sales strategies they’ve used for years aren’t always effective in an interactive TV environment.

Home shopping TV requires a different approach to be successful and retailers who have mastered selling their products in this interactive environment are discovering that the lessons they’ve learned from interactive selling can be applied to almost every aspect of their business.

The 60-Second Sale

Shopping channel retailers don’t have much time to make a sale. With less than 60 seconds to make your pitch, success is typically measured by how many sales you make per minute. This is a huge change from the weeks or even months it might take for customers to make a decision about something inside a glass case at their favorite jewelry store. To deal with the faster pace of the decision making process in a home shopping environment, retailers have become much better at recognizing the signals that people send indicating whether they are interested in buying a product or rejecting it.

The Importance of a Compelling Story

You need a compelling story to sell a watch in 60 seconds on TV. Simply listing product benefits is not enough. Successful TV sellers have learned to capture the attention of the viewer with an interesting story that gets them engaged with the product. A compelling story is so effective at generating a sale that many retailers are starting to employ the technique in their brick and mortar stores as well. Any great watch has a great story behind it and customers want to know about it.

Walking Away From a Loser

In a home shopping TV environment, you know immediately what sells and what doesn’t. If the phones aren’t ringing after your 60-second pitch, your product isn’t going to sell. To succeed, you need to quickly cut your losses and move on. This is very different than what happens in most retail stores. Brick and mortar stores can succeed selling luxury goods with a 25% conversion rate. To succeed on TV, you must convert a much higher percentage into sales. Retailers have learned that the best way to do this is keep selling your winners and quickly walk away from the losers. If you can’t get a viewer excited about a watch in 60 seconds, you probably aren’t going to get them excited period!

There’s More Than One Way to Sell a Watch

The most important lesson that shopping channel TV has taught luxury retailers is that there is more than one way to sell anything. In today’s digital age, you need to engage customers on-air, via the Internet, by phone, by magazine advertising, as well as by traditional face-to-face interaction in the store. Retailers who have made the effort to master all these new sales channels are seeing dramatic increases in sales along with a much faster turnover rate.

Home shopping TV is teaching retailers that selling is a two-way conversation. In today’s fast paced world, it’s not enough to simply tell people about your product. You must engage them emotionally. The success of interactive selling has proved that when the customer feels they have become part of the conversation, you have made a sale.

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Lord & Taylor Owner Buys Saks Fifth Avenue

Wed, 31 Jul 2013 18:50:16 +0000

Will Continued Consolidation in the Retail
Industry Benefit or Hurt Watch Manufacturers?

When retail giant HBC Holdings announced on July 29 that they were purchasing luxury retailer Saks Fifth Avenue, it signaled a continuation of the trend toward consolidation in the retail industry. The purchase, valued at $2.9 billion dollars, will bring together Saks Fifth Avenue, Lord & Taylor and Canada’s Hudson’s Bay Company to create one of North America’s premier fashion retailers.

With the addition of 41 Saks Fifth Avenue stores, 67 Saks Fifth Avenue OFF 5TH stores, the saks.com online business, and Saks-licensed stores in Dubai, U.A.E.; Polanco, Mexico City, Mexico; Manama, Bahrain; and Almaty, Kazakhstan; the combined company will operate a total of 320 stores, including 179 full-line department stores, 72 outlet stores and 69 home stores. These retail stores, along with three e-commerce sites, are expected to generate $97 million in annual sales within three years.

Retail consolidation typically provides significant economies of scale and as HBC chairman and CEO Richard Baker said recently “This acquisition will increase our growth potential both in the U.S. and Canada, generate significant efficiencies of scale, add to our powerful real estate portfolio and deliver substantial value to our shareholders.”

Potential Growth for Luxury Manufacturers

Does retail consolidation have any benefits for manufacturers and luxury goods buyers? Probably so. Luxury manufacturers are typically smaller than mass-market manufacturers and it is often not practical to ship full truckloads to a lot of small independent retailers. Consolidation allows these manufacturers to ship a single large quantity to a consolidated retailer like HBC Holdings and then let this company use its own distribution system to get the merchandise to individual stores. As a result, exclusive products like luxury watches and jewelry become available to a much wider audience.

The economies that come with a large consolidated inventory and distribution system are a big reason why giants like Wal-Mart and Target are able to offer low prices on such a wide variety of merchandise. Saks Fifth Avenue, Lord & Taylor and Canada’s Hudson’s Bay Company are all popular destinations for the latest in jewelry and fine timepieces. Now that these three luxury retailers have joined forces, it should provide luxury goods manufacturers with a more effective way to get their goods to market while providing customers with a wider selection to choose from.

If you’re a watch aficionado who likes to shop, stop by one of these retailers when the sale is completed. If history is any guide, you should see some exciting new choices that weren’t available before.

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Swatch Group Required to Slow Supply Cuts

Mon, 22 Jul 2013 16:13:49 +0000

Weko, the Swiss competition authority,
gives smaller watchmakers a reprieve.Consolidation within the watch industry has been hard on smaller watchmakers in recent years. Many of these manufacturers don’t have the resources to produce their own in-house movements, and rely instead on parts and supplies from third party manufacturers. This system worked well for many years until the giant Swatch Group essentially became the only game in town.

The trend towards consolidation in the watch industry meant that fewer and fewer watchmakers manufactured their own movements. Instead, they used the components made by the Swatch Group’s ETA division. These movements were affordable and plentiful, since ETA sold components to literally hundreds of smaller companies in addition to manufacturing movements for their own brands.

As the Swatch Group continued to grow, it decided to cut back and eventually end the sale of component parts to its competitors. This move was designed to improve profit margins for Swatch and ensure that there would be enough supplies on hand for it’s own brands, which had grown to include familiar names like Longines, Omega, Tissot, and Breguet.

The decision to stop selling component parts to competitors was devastating to many smaller watchmakers. It was simply too expensive to manufacture their own components from scratch and there were few alternatives to the ubiquitous ETA movements.

A Temporary Resolution

Fearing that they might go out of business without a reliable source for critical movement parts, these watchmakers appealed to Weko, the Swiss competition authority, for help. In a recent ruling, Weko agreed that Swatch Group should be allowed to continue it’s gradual reduction in the delivery of finished movements, beginning with another 10 percent reduction in finished movement deliveries in 2014. Weko decided however to restrict further cuts in the deliveries of assortments, the parts that drive the movement: such as the hairspring, balance wheel, anchor and anchor wheel. A Weko spokesman said the commission’s decision was based on the fact that many smaller watchmakers still did not have viable sourcing alternatives for these vital components and might go out of business without them.

In the long run, these watchmakers are still going to have to find an alternative to ETA movements and parts. The Swatch Group is determined to phase-out the sale of movements and parts to competitors in the years ahead. The Weko ruling provided a reprieve for the watch industry, but only a temporary one. Manufacturers will still need to develop new supplier relationships and perhaps even begin manufacturing their own in-house movements in the years ahead.

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Amazon on the Verge of Joining Top-10 US Retailers

Fri, 19 Jul 2013 15:55:31 +0000

The World’s Second Most Valuable Brand
Moves up to Number 11 in US Domestic Sales

There is no better sign that online shopping is here to stay than when a pure play online retailer is poised to join the ranks of America’s largest brick and mortar retail giants. The new kid on the block is Amazon, which jumped to number 11 on a list of the largest U.S. retailer in terms of domestic sales. Amazon raked in $34.42 billion in U.S. sales in 2012, a 30% year-over-year increase.

The Seattle-based online retailer is already ranked as the second most valuable global retail brand on a list that includes international retail giants like Walmart, Tesco, Carrefour, and Aldi. Cracking the top ten in the influential US market is considered significant because it clearly demonstrates that Americans are changing the way they shop.

Although giants like Walmart, Kroger, Target, and Home Depot, still lead Amazon in domestic sales, they are not growing nearly as fast as the online retailer. Traditional brick and mortar stores haven’t even been able to come close to Amazon’s impressive 30% year-over-year increase in sales.

Amazon’s Growth in the Luxury Industry

Amazon’s steady growth hasn’t gone unnoticed in the fine jewelry industry. For many years, Amazon has been creeping up in the ranks of the largest and most influential fine jewelry and watch sellers. Amazon is already ahead of familiar jewelry and watch sellers like Sears at number 13 on the list, and Macy’s at number 14. To put things in perspective, luxury retailer Neiman Marcus is all the way down at number 84 on this year’s list of domestic sales.

It seems clear that Amazon will soon join the exclusive ranks of the top-10 US retailers. If their performance continues at present rates, Amazon could even be number one in the not too distant future. This explosive growth has serious implications for anyone who makes or sells luxury goods. According to Gevril Group President Samuel Friedmann, Amazon will be an important component in any luxury goods marketing strategy. “Every year, we see an increase in the number of watches selling on Amazon,” says Friedmann. “Amazon sales are a part of world marketing strategy now, and will continue to be so in the future.”

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Antonio Calce Appointed CEO of Eterna Watches

Tue, 09 Jul 2013 19:26:10 +0000

China Haidian Holdings confirms its commitment to Swiss watchmaking with the appointment of Corum CEO to head up its Eterna brand.

Antonio Calce has a well-deserved reputation in the watch industry. As Director of Product Development for the Piaget and Panerai brands, and later as General Manager of Panerai, he was responsible for turning Panerai into one of the world’s most recognized and desirable timepieces.

In 2005, Calce was invited to join Corum as Vice President of Operations. Two years later, he was appointed CEO and began a campaign to re-position the historic brand as a leader in Haute Horlogerie. His efforts to rebuild the brand focused on developing watchmaking talent within the company and re-launching several legendary watches, including the iconic Corum Admiral’s Cup and Golden Bridge.

Now, Mr. Hon Kwok Lung, Chairman of the Executive Committee of China Haidian has tapped Mr. Calce to do the same thing for its Swiss Eterna brand. Eterna, like Corum, has a long history of innovation and watchmaking expertise, but is not widely known in the world market. “I am confident of Antonio Calce’s ability to rebuild Eterna,” said Mr. Hon in a recent statement. He added that he will enjoy working with Calce, and trusts him to ensure effective management of both companies.

Antonio Calce is confident about Eterna’s future. This 150-year-old Swiss company is one of the few watchmakers in the world that still manufactures entire movements at their own manufacturing facility. The company’s famous Eternamatic movement revolutionized the industry when it was introduced in 1948, and the spirit of innovation continues today with groundbreaking new mechanical movements like the Calibre 2505 and 3510, which feature the company’s innovative Spherodrive design.

With the talents of Antonio Calce and the resources of China Haidian Holdings, the future of Eterna looks very bright. “I am attached to Eterna’s incredible history and strongly believe in its potential,” says Mr. Calce. “My immediate mission is to put Eterna back at the forefront of the Swiss watchmaking landscape.”

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Couture Las Vegas Vital to U.S. Market Say Watch Industry Insiders

Sun, 07 Jul 2013 19:04:15 +0000

by Ivo Jackson

Globally, Las Vegas represents the ultimate in exquisite indulgences in nearly every way imaginable. The fashion industry is no exception.

Luxury timepiece dealers and distributors meet every year at the majestic Wynn Resort in Las Vegas, Nevada for The Couture Show, the premiere jewelry and watch event for high-end retailers in the U.S. Watch industry insiders gather at Couture Las Vegas to browse exclusive new collections, strengthen business relationships, and prepare to bring the best of the fashion and luxury watch world to consumers throughout the United States.


Click to Enlarge Image		Click to Enlarge Image

Historically, the Baselworld Watch and Jewelry Show, held in Basel, Switzerland, has been the world’s premiere timepiece trade show. Beginning in 1917 in the world capital for fine timepiece manufacturing, “Basel Fair”, as it is often called by Europeans, is the largest show for watch manufacturers and distributors worldwide, and was by default the most important show in the industry.

However, as the U.S. market is becoming increasingly important to luxury and fashion timepiece brands, The Couture Show in Las Vegas is growing in importance, as well. According to many Couture 2013 attendees, this fabulous five-day show now rivals its Basel counterpart.

Paolo Marai, CEO of Vertime, commented that “Compared to Basel Fair, as a very limited number of US customers are coming to see the new products, Couture is really the hot moment of the year to show the new collections to our customers based in the U.S.” Danny Govberg, owner of Govberg Jewelers agrees. A fan of the show, he calls Couture Las Vegas, “one of the most prestigious shows in the world with the most prestigious designers and watch brands.”

Besides quality and exclusivity, location and accommodation also make The Couture Show at the Wynn Resort in Las Vegas a growing and vital influence within the luxury timepiece industry. To have such a quality trade show in the U.S. makes it easier for more North American retailers to attend and do all their shopping for the upcoming season in one place.


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Furthermore, American buyers are often more accustomed to the large, luxurious accommodations in Las Vegas, as opposed to the more conservative and “cozy” accommodations available to Baselworld attendees, so going to Couture Las Vegas is not only more convenient, but potentially more comfortable than traveling to Switzerland for Baselworld.

As the U.S. luxury watch market grows with designer brands launching high-end fashion watch brands to accompany their clothing lines, the timepiece exhibition at The Couture Show in Las Vegas will continue to grow in importance and excellence.

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Neiman Marcus Files for IPO

Tue, 25 Jun 2013 17:12:33 +0000

Neiman Marcus Proves Luxury Retail is
Alive and Well With a $100 Million IPOFive years after being taken private by a private equity firm for $5.1 billion dollars, Dallas-based luxury retailer Neiman Marcus is on the verge of going public again. The recent IPO registration does not necessarily mean that the company will go public, but it is a good indication that Neiman Marcus is doing well and wants to keep its options open.

During the 2008-2009 financial crisis, the sale of luxury goods plummeted in the United States. Neiman Marcus, like most luxury retailers, suffered during the recession, but conditions have definitely improved. Projections indicate that at the end of the current fiscal year, Neiman Marcus sales will have recovered to pre-recession levels.

Neiman Marcus was the first high-end retailer to start selling online and currently attributes over 20 percent of total sales to their ongoing e-commerce efforts. This is better than high-end competitors Saks and Nordstrom, and bodes well for future growth. Neiman Marcus also derives over 11 percent of its revenues from the sale of fine jewelry and luxury watches. This means the watch industry will be watching the new IPO closely.

Will Neiman Marcus Really Go Public?

The initial prospectus, filed on Monday, June 24, did not set a timeline for taking the company public again. It is still unclear how many shares would be sold and on which exchange Neiman Marcus shares would trade. In fact, filing for an IPO doesn’t require the company to go public at all. Many industry watchers think that the recent Neiman Marcus IPO registration is only a placeholder for a much larger future sale.

It is no secret that private equity owners TPG Capital, Warburg Pincus and Leonard Green & Partners, are investigating a sale of the company. Most private equity funds have a lifespan of ten years or less and many in the financial world already consider Neiman Marcus a mature investment. The unanswered question is what this successful upscale retailer will do next.

If and when Neiman Marcus goes public, it is a good indication that the market for luxury goods has regained its health and high-end retailers like Neiman Marcus are here to stay.

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Gold Prices Plunge Amid Interest Rate Fears

Fri, 21 Jun 2013 15:38:36 +0000

Will Lower Gold Prices Result in Higher Sales of Gold Watches?

Investors watched nervously as gold prices fell precipitously after Federal Reserve chairman Ben Bernanke hinted that the central bank might reduce its bond purchase program this year and possibly even end it in 2014. The dramatic 5% drop on Thursday, June 20 extends a 28% decline that began on October 4, 2012.

With gold prices at a two-year low, luxury items made from the precious metal are starting to fly off the shelves in jewelry stores from Macau to Mumbai. In this part of the world, gold has always been an important part of the local economy and gold bracelets, necklaces, rings and coins are highly desirable. Locals see the plunging price of gold as a ‘once-in-a-lifetime’ chance to buy the items they have always desired. Some jewelry stores in Macau are already reporting sales figures that are three times higher than normal.

Gold Prices and Luxury Watches

Ironically, the plummeting price of gold has not yet resulted in increased sales of luxury watches. A solid gold timepiece remains one of the most desirable of possessions, but don’t expect today’s lower gold prices to result in lower prices for your next gold watch. Retail jewelry prices are not traditionally market driven, especially when it comes to luxury watches. Since much of the gold used the gold watches you see in the stores today was purchased earlier when prices were higher, it is impossible for the price to accurately reflect the current price of the raw metal.

A fine gold watch is generally priced by the design, craftsmanship and reputation of the watchmaker, which adds considerable value to the gold. Does the price of gold impact the selling price of a gold watch at all? It certainly does, but it can take a long time for the falling price of gold to significantly reduce the retail price of an 18K gold watch.

If gold prices stay low, or drop even further, the prices of many gold watches will certainly decline. The price will have to stabilize at these low levels to have any lasting impact, however. Many in the watch industry see falling gold prices as a good thing. When gold prices are extremely high, a gold watch is out of reach for all except the extremely wealthy. Sustained low gold prices might actually signal the return of the gold watch as a retirement gift or wedding present.

According to Samuel Friedmann, President of Gevril Group, a fine gold watch will remain highly desirable, whatever the current price of gold in the financial markets. “A gold watch is a family heirloom that can be passed from one generation to the next”, says Friedmann. “It finds its true value in the memories it creates and contains.”

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Swatch Group and Stührling Settle ‘Men in Black’ Watch Lawsuit

Mon, 17 Jun 2013 17:07:26 +0000

Stührling Agrees to Pay Swatch Group $1 in Damages in What
Many Feel is Another Frivolous Watch Industry LawsuitThe iconic Hamilton Ventura has been worn by celebrities including Rod Serling, Elvis Presley, and more recently Will Smith, in the popular movie “Men in Black III.” When a ShopHQ host mentioned the movie on the popular shopping channel during a segment featuring the Stührling Ricochet, a lawsuit ensued.

The Swatch Group, who currently sells a re-issue of the historic 1957 Ventura, alleged that Stührling Original LLC and ShopHQ were trying to sell an intentional copy of the triangular Hamilton Ventura. Not so, said Stührling.

Stührling Chief Operating Officer Barry Kaplan strongly objected to the suit, saying, “There are a lot of triangular watches out in the marketplace.” He made a point that several of these brands were still making triangular watches without any legal action from the Swatch group.

Lawsuits in the Watch Industry

Lawsuits involving a brand’s “trade dress” or general appearance are becoming increasingly commonplace in the watch industry as manufacturers attempt to limit competition. “This lawsuit was meritless from the get-go,” said Akiva Shapiro, the attorney representing both Stührling and ValueVision Media Inc., parent company of ShopHQ. The judge seemed to agree, awarding The Swatch Group just one dollar in damages, which was subsequently donated to charity.

Although the settlement was miniscule, both sides incurred thousands of dollars in legal expenses. The suit was settled without any admission of wrongdoing on the part of the defendants and with prejudice; meaning re-filing of the case is forbidden. As part of the settlement, ValueVision Media and Stührling also agreed to stop selling the Ricochet watch on ShopHQ.

Many think that these types of lawsuits are stifling the watch industry, as large powerful brands attempt to attain exclusive rights to something as vague and ambiguous as the shape of the case. The case between The Swatch Group and Stührling has been settled, but it probably won’t be the last of these types of lawsuits. As watches continue to increase in popularity as fashion accessories, there will always be manufacturers who try to control the playing field.

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Couture 2013 Las Vegas – Showcasing the Worlds Best Luxury Brands

Wed, 22 May 2013 15:49:52 +0000

If Your Business is Luxury, You Always Make Time For Couture

Perfectly timed to coincide with Las Vegas Jewelry Week, Couture is just around the corner. From May 30 until June 3, the world’s leading jewelry and timepiece designers, retailers, and manufacturers will gather at the exclusive Wynn Hotel in Las Vegas for Couture. For over 16 years, the Couture show has been the destination of choice for the stars of the luxury goods industry. With every passing year, this prestigious event continues to gain steam within the luxury community and is now considered the preeminent place to showcase jewelry and watches.

According to Gevril President Samuel Friedmann, “the Couture show has become the place where established brands, rising stars, powerful retailers and luxury trend setters discover what is going to excite customers and drive sales during the year ahead.”

Friedmann says that participation in the influential Couture show is absolutely essential for Gevril Group. In 2012, Gevril showcased virtually all of the 40 fine timepiece brands it represents, in the Wynn Hotel’s spectacular Chambertin 2 Ballroom. During the five-day event, the show generated much more traffic and interest than the company initially anticipated. “We had success with every price point. Even drop-ins led to serious discussions,” said Friedmann.

This year, Gevril Group will once again be showcasing many of their prestigious brands at the Couture Time exhibit; including world renowned names such as Fortis, Gevril, Versace, Ferragamo and Versus. Joining Gevril at Couture are industry leaders like Stefan Hafner, Chopard, Bell & Ross, Bvlgari, Perrelet, David Yurman and many others. The prestigious Watch Journal will be returning as co-host of Couture Time in 2013. Watch Journal is the first luxury magazine built around watches and is widely regarded as a leading voice within the industry.

With new brands and exciting faces in attendance, the 2013 Couture show promises to be the best ever. Paul Ziff, President of Ferragamo Timepieces for the US and Caribbean, is looking forward to this year’s event. “We are very pleased to be participating in the 2013 Couture show” said Ziff. “Couture is the perfect venue for leading retailers to meet with executives from the industry’s top brands in a relaxed and luxurious environment. It is in this setting that new relationships are forged and existing partnerships strengthened.”

Kari Allen, President of Versace Timepieces for the US and Caribbean, agrees. “I am excited to share the new 2013 Versace and Versus Versace Watch Collections at the Couture show this year” said Allen. “We have gotten fantastic responses from all the top retailers making appointments for this year’s show. The Couture Show at the Wynn Las Vegas is where everyone comes to see all the top luxury watch and jewelry brands in one elegant setting.”

The Couture show proves once and for all that what goes on in Vegas doesn’t necessarily have to stay there. From May 30 until June 3, Gevril Group will give the world’s premier luxury retailers a unique opportunity to see, touch, and just say “wow” to one of the most diverse collections of fine timepieces available today.

Gevril Group will be at Couture from start to finish in the Chambertin 2 Ballroom. You can reach Gevril Group by email or by calling 1-866-425-9882. During the event, call Ruth Dombroff at 914-689-4360.

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Versus Versace Launches 2013 Collection With a Bang

Tue, 21 May 2013 16:26:18 +0000

When Donatella Versace Throws a Party
The Fashion World Knows What’s Next!TIn celebration of the launch of Versus Versace’s new 2013 Collection, along with a new capsule line by British design hotshot JW Anderson, Donatella Versace cranked up the glitz and glamor at a New York City bash for the fashion world’s newest crop of superstars. This fabulous fashion fête featured lots of leather, along with a bold new use of colors and textures that firmly reestablished Versus Versace as the rock ‘n’ roll soul of the fabled Italian label.

Headlining the glittery evening were two of the music world’s hottest new stars: Grimes and Angel Haze. Claire Boucher, better known by her stage name Grimes, wowed the audience in a Versus granite-hued skirt and a top adorned with Versace’s trademark logo, which was perfectly accented with black combat boots.

Grimes, who was awarded the Webby for Artist of the Year in 2013, showcased her unique and original synthesis of industrial, electronic, pop, hip hop, and R&B, while Angel Haze showed why she has become one of today’s hottest female rappers.

Angel, who rocked a colorful, oversize button-up Versus Versace print during her electrifying performance, proved once again that she really does rule in New York City. Although Grimes and Angel are at opposite ends of the musical spectrum, both women were seen wearing Versace’s signature medallion necklace during the May 15th event.

The young, hip and decidedly star-studded audience included luminaries like Cameron Silver, Gossip Girl’s Taylor Momsen, and singer Paloma Faith. These long-time Versace fans pulled out all the stops, wearing some fabulous Versace outfits themselves.


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With a spectacular runway show that included bold new Versus Versace prints, guys in crop tops, and enough bling to light up the room, it’s clear that the new Versus Versace’s 2013 Collection was exactly what the fashion world was looking for. New Versus Versace styles are available now in select locations and JW Anderson’s new capsule line will be available starting June 15.

The attention to detail and commitment to quality that were abundantly evident at the Versus Versace 2013 Collection launch have always been a hallmark of the popular Versace Versus timepiece line. To wear what the fashion world is celebrating now, it’s time to head for your nearest authorized Versus Versace retailer and start making your own headlines.

Gevril Group US and Caribbean Agent for Versus Watches

Versus Watches is represented in the US and the Caribbean by Gevril Group. Contact us by email or by calling 845-425-9882.

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Debate Begins on the Marketplace Fairness Act

Wed, 01 May 2013 21:21:00 +0000

Is the Party Over for Online Retailers?

Online retailers have revolutionized the way today’s consumers shop. People of all ages are discovering that shopping online is safe, convenient, and often less expensive than shopping at conventional “brick and mortar” stores. This new industry is still in its infancy, but its growth is nothing short of spectacular. The U.S. Bureau of the Census estimated there were $4.1 trillion in retail and wholesale transactions over the Internet in 2010 and this number is expected to get much larger in the years ahead.

Since current sales tax laws typically only apply to goods and services purchased in the seller’s home state, new Internet businesses have benefited by selling their products tax free to out-of-state customers. Until recently, politicians have supported this practice, because it encouraged the growth of a whole new type of industry and politicians know that business growth means new jobs.

Potential Revenue Gains

Opinions are changing however, and the party may soon be over for Internet retailers. Traditionally, state governments have relied on sales and use taxes for roughly a third of their total tax revenue. Local governments depend on sales taxes too, and derive over 11% of their tax revenue from sales and use taxes. With online sales booming, these governments are seeing a dramatic decline in revenue. It is estimated that Internet transactions were responsible for an estimated loss of $11.4 billion dollars in revenue to state and local governments throughout the United States in 2012.

With a stagnant economy and declining revenues, governments are looking for money anywhere they can find it. One place they are turning is online sales. Many legislators think that taxing online sale will level the playing field and be beneficial to traditional “brick and mortar” business in their constituencies. That is why large retailers like Walmart currently support an online sales tax. Many legislators aren’t as concerned about this perceived “fairness” issue. They just see online sales as an enormous new source of potential revenue.

Possible Consequences for Small Businesses

Although a few larger online retailers like Amazon support the concept of an online sales tax, the tax could be devastating for smaller retailers. Many think it would be an administrative nightmare to comply with an online sales tax law, since each state and municipality has their own tax laws. With thousands of different tax jurisdictions, each imposing their own tax rate, it could be extremely complex for sellers to deal with a different set of rules for every out-of-state buyer.

Inevitable Outcome?

Despite the complexities, the Marketplace Fairness Act has strong bipartisan support in congress and the legislation is expected to pass as early as May 6. With government at every level hungry for new sources of revenue, it’s hard to find opposition to the proposed Internet sales tax. Even those who have pledged not to increase taxes tend to support this bill, saying that it is not a new tax, but simply a mechanism that allows states to more effectively enforce existing tax laws.

With online sales continuing to grow at an astounding 16% a year, it is increasingly clear that state and local governments are going to want a share of this lucrative pie.

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China Haidian Holdings Acquires Corum

Thu, 25 Apr 2013 19:58:04 +0000

Is Corum’s Move to China a Sign of Things to Come?

When Chinese watchmaker China Haidian Holdings purchased Eterna AG in 2011, the Swiss watch industry immediately took notice. Eterna was a major player in the world of luxury timepieces. The company was famous for developing the ubiquitous ETA movement. Without Eterna, there wouldn’t be an ETA movement in the vast majority today’s fine mechanical watches.

Now, China Haidian Holdings has consolidated its position in the luxury Swiss watch sector with the purchase of another Swiss icon: the popular luxury watchmaker Corum. China Haidian announced on April 24, that it had acquired 100% of Corum for 86 million Swiss francs (US $90.9 million). Corum timepieces are well known for their gold and jewel encrusted designs and the brand is quite popular with celebrities and watch aficionados. In a prepared statement China Haidian chief executive Hon Kwok Lung said, “I am very pleased with this acquisition and I firmly believe in the potential development of Corum.”

Is the Future of the Watch Industry in China?

China Haidian Holdings already owns two of the top four domestic Chinese watch brands, EBOHR and ROSSINI. In addition to owning the Swiss brand Eterna, Haidian also has a license to manufacture and distribute “Porsche Design” watches globally as well as distribute various other luxury watches in China.

With the Far East currently the strongest market for timepieces worldwide, watch industry insiders are looking closely at these Chinese acquisitions and wondering what they mean for the future. Many see Chinese acquisitions like Eterna and Corum a win-win proposition for all involved. The Chinese get access to hundreds of years of Swiss watchmaking knowledge and expertise. The newly acquired companies gain access to new and better manufacturing methods, along with an opportunity to more effectively market their products to the all-important Asian audience.

With wristwatches continuing to grow in popularity as a fashion accessory, many see a bright future for Swiss and Chinese companies alike.

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Gold Prices Plummet to New Lows

Tue, 16 Apr 2013 16:09:29 +0000

Has Gold Lost its Glitter With Investors?

It has been a tough week for gold investors. The precious metal has tumbled to its lowest level since March of 2011, with prices falling below the benchmark $1400 an ounce mark on Monday. “Gold is kind of giving up,” says Michael Haigh, global head of commodities research at Societe Generale. According to Haigh, “gold doesn’t look like a great idea anymore, especially with the dollar strengthening and real interest rates expected to rise”

Others agree with this gloomy assessment. Goldman Sachs has trimmed its 2013 gold price prediction and sees gold falling as low as $1270 on ounce by the end of 2014. Are we entering a long-term bear market for the precious metal? “If you use the standard of a 20% drop from a peak, we’re already there,” said Brien Lundin, editor of Gold Newsletter.

Why the Sudden Collapse?

There are many reasons for the precipitous crash. Gold has always been sensitive to geopolitical forces and the world today is much more uncertain than it’s been in a long time. Rumors that a beleaguered Cyprus was selling its gold reserves in an effort to avert bankruptcy have unnerved investors. A slowdown in China’s burgeoning economy hasn’t helped prices either. Even India, which has a seemingly insatiable appetite for the yellow metal, is experiencing an unexpected slowdown in the demand for gold jewelry.

Unlike other commodities, it is hard to separate the price of gold from the emotion surrounding it. Gold evokes strong feelings, and buyers and sellers do not always act rationally. Some people buy gold for the status it provides. Others buy the metal as a hedge against economic disaster. For many years, countries around the world, including the United States, linked the value of their national currency to the price of gold. They did this to provide stability. Unfortunately in a global economy, gold provides no more stability than any other commodity. Now, with speculators holding a record level of short positions, the short-term price of gold is more volatile than ever.

Gold Prices and Jewelry

Although gold prices are at a 2-year low, don’t expect to find any bargains at the jewelry store. Retail jewelry prices are not traditionally market driven. “The price of jewelry doesn’t necessarily move up and down as quickly as the gold price,” says Jessica Fung, a commodity analyst with BMO Capital Markets. David Bonaparte, chief executive of Jewelers of America, adds that the gold used in the fine jewelry and watches you see in the stores today was purchased earlier when prices were higher. Simple items like gold chains may reflect the current price of the metal they contain, but other items, like a fine gold timepiece, are generally priced by the design and craftsmanship of the watchmaker, which adds value to the gold.

Will the price of gold stabilize soon, or will it drop even lower? Nobody knows for sure. With some countries liquidating their federal gold reserves to meet debt obligations, it is reasonable to expect prices to drop even further. Gold, like any other commodity reacts to the laws of supply and demand and when the market is flooded with gold, the price will drop. On the other hand, gold has long been considered an alternate currency and people accumulate the metal during periods of uncertainty. Probably the only thing that can be said with certainty is that the price of gold will continue to rise and fall in response to people’s emotions.

A Gold Watch as an Investment

People’s emotions are also why a fine gold timepiece will continue to be a good investment. A gold watch is a family heirloom that can be passed from one generation to the next. When cared for properly, a gold watch can last indefinitely. The timeless quality of a high quality watch is priceless. The price of gold bullion will continue to ebb and flow, while your grandfather’s gold watch finds its value in the many memories it contains.

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Ron Johnson Out as JC Penney CEO

Thu, 11 Apr 2013 19:44:22 +0000

After Destroying a Venerable 110-year-old Retailer
In a Single Year, Ron Johnson Gets the Sack

What was Ron Johnson thinking? Given his impressive resume, many thought that “the wizard from Apple” was the perfect man to turn around 110-year-old retailer JC Penny and take the store into the 21st Century. Prior to assuming the CEO role at JC Penny, Johnson had certainly enjoyed his share of success. He presided over the highly successful Design Initiative at Target, featuring a reasonably priced home collection from well-known architect Michael Graves. Johnson’s success at Target led to an even more high profile position at Apple, where he oversaw a network of over 300 retail stores and pioneered innovations like the Apple Genius Bar, where customers could go to get hands-on technical support.

Where Johnsohn Failed

When Johnson became CEO of JC Penny in November of 2011, he began a bold initiative to apply his trademark retail magic to the faltering retail giant. Unfortunately, Ron Johnson made a fatal mistake. He didn’t understand the JC Penny customer. The 50-something female customers who regularly came to JC Penny to shop for sales and use their coupons were a far cry from the 25 to 34 year olds who flocked to Apple stores to buy electronic gear with some of the highest profit margins in the industry.

In an effort to reinvent JC Penny and attract this young, hip audience to the venerable mid-line department store, Johnson ended up disenfranchising his existing customer base in the process. He discontinued the long-standing J.C. Penney’s practice of holding frequent sales, which was the main reason his core audience shopped there in the first place. He tried to replace the retailer’s frequent promotional campaigns with a new “everyday low-price” strategy designed to simplify store operations.

All this might have worked if Johnson had been able to attract the younger audience that eagerly bought Michael Graves housewares at Target and iPhones at the Apple stores. These new customers never came, while loyal existing JC Penny customers continued to abandon the store in favor of other alternatives.

The Turnaround

Now it’s up to new CEO Mike Ullman to clean up the mess. Ullman spent seven years as JC Penny’s chairman and CEO until Ron Johnson replaced him. Is Ullman, who was unable to turn the retail giant around before, the right man for the job? Right now, he may be the only option available. “Unless the company acts now, it will soon hit a large cash problem, says industry analyst Paula Rosenblum. “Ullman can, at least, hit the ground running. Bottom line, he has to stop the bleeding.”

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eBay Rebrands Shopping.com

Wed, 10 Apr 2013 15:59:54 +0000

eBay Commerce Network isn’t just a new name for Shopping.com. It’s a whole new way to connect merchants and their customers.When online auction powerhouse eBay acquired the popular price comparison site Shopping.com in August 2005, people wondered if the two online shopping services would ever be connected. Now, after a major rebranding campaign in which Shopping.com was re-launched as eBay Commerce Network, the verdict is in.

The reinvented eBay Commerce Network has shifted its focus in an effort to provide more services to online publishers and merchants, increasing the likelihood that a customer will actually click-through to a merchant’s store. For everyday users, the new eBay Commerce Network is still a price comparison site, just like Shopping.com. The difference now is that merchants will have many more sales opportunities where they can reach out to qualified customers.

The New and Improved eBay Commerce Network

One of the biggest changes that merchants will notice is that search results produced by the newly launched eBay Commerce Network can now be shown elsewhere on the Internet, significantly increasing the likelihood of a successful transaction. Merchants will have access to all of eBay’s sophisticated transaction tools, including eBay’s popular PayPal checkout. The platform’s new API will provide publishers with real-time access to a host of eBay services, products, features, listings and merchants. Using new value based pricing algorithms; publishers will receive revenue according to the quality of traffic they send to merchants – rather than sheer quantity.

Shopping.com already serves more than 250 million consumers every month, and is accessible in the United States, France, Germany, Australia and the United Kingdom. With more effective incentives for merchants and publishers, the redesigned eBay Commerce Network has the potential to attract a whole new wave of active users. According to eBay Commerce Network General Manager Kristy Troup, the network has been set up to give 4,000 participating merchants access to sites with some 200 million monthly page views. Participants already include retail chains like Macy’s, Target, Best Buy, and Amazon.

The eBay Commerce Network charges retailers on a cost-per-click basis and has been optimized to help merchants effectively manage their CPC bids to produce the highest possible click-through rates and sales. “We’re investing in the network and committed to growing it,” says Kristy Troup. One thing is clear. Online commerce is here to stay and eBay’s renewed commitment to improving the online shopping experience will have major implications for publishers, merchants, and their customers.

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Online Sales Tax Upheld by New York State Supreme Court

Wed, 03 Apr 2013 19:44:49 +0000

Is it Fair to Charge New Yorkers Sales Tax for Online Purchases?

The ability to make purchases online without paying state sales tax is something that online merchants and customers alike have grown to love. For many years, this sales tax exemption was considered a win-win proposition for everyone. States and municipalities were more than happy to grant the sales tax exemptions to online merchants to encourage new business and job growth. Buyers were more than happy to save some money as well, especially as they began to discover that buying online was as safe and secure as any other type of transaction.

As the economy began to deteriorate, some states began to change their opinion on taxing online sales. These states were strapped for cash and needed to find new revenue any way they could. As traditional “brick and mortar” business began to migrate online, these states found that they were losing a once reliable source of revenue. Instead of granting tax exemption to encourage online businesses to locate within their states, they now wanted to tax these businesses as well, to regain the revenue they were losing from traditional retailers.

New York State Leading the Charge?

New York State seems to be leading the movement to charge sales tax on online sales. Currently, New York is one of only two states where popular online retailer Blue Nile charges sales tax to New York residents. Online giants like Amazon and Overstock are also required to now charge state sales tax to New York residents.

Unhappy with the new regulations, Amazon and Overstock challenged the state law and on March 27, the New York State Supreme Court rejected their challenge, affirming the state’s right to collect sales tax from any online business that had a “nexus” or a physical presence in the state.

An Unresolved Issue

Overstock has said that it is considering appealing the ruling all the way to the Supreme Court. They are also thinking about getting the U.S. Congress involved. “This is a fairness question which the Congress alone must resolve,” says acting Overstock CEO Jonathan Johnson in a prepared statement. “There are more than 9,600 taxing districts in the country, and if Congress moves that enormous tax collection burden to remote retailers, then in fairness, Congress should require states to pay reasonable compensation to those retailers for the associated costs.”

This issue is not over yet. As more and more states are faced with budgetary shortfalls, they are increasingly turning to the world of online retail as a potential source of revenue. This is not a popular move with customers and even with some jurists. In 2012, an Illinois court struck down the state’s online sales tax law, ruling that the law violated the Commerce Clause of the U.S. Constitution.

One thing is certain. Online sales will continue to grow in popularity and state governments will continue to need revenue. It is unclear at this point how this issue will be resolved in a way that is fair to everybody. At least one retailer, Overstock, says that they are willing to accept an “appropriate” federal solution to the issue.

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JC Penney Transformation Could Take Longer Than Expected

Sun, 24 Mar 2013 17:39:21 +0000

New Initiatives May Not be Enough to Stop
The Slide in JC Penney Sales and ProfitsDepartment store powerhouse JC Penney has had a rough year. During the last 12 months, the retailer has experienced a 25% decline in sales as the store’s traditionally price-conscious customers uniformly rejected the transformational strategies of new CEO Ron Johnson. Since his appointment as CEO in November of 2011, Johnson has delivered one disastrous quarter after another. To modernize the stores, Johnson launched a massive transformation effort that did away with most of JC Penney’s coupons and discounts. He also opened a series of “shops within a store,” creating as many as 100 different boutiques at most Penney stores.

Customers and investors were not impressed. JC Penney shares dropped as much as 22% in a single day after the retailer announced a 31.7% decline in comparable sales during the important 2012 Winter holiday quarter. In an effort to lure back customers and boost share prices, JC Penney has already rescinded some of its transformational initiatives. Coupons are back, and JC Penney has now acknowledged that it may have to rethink its transformational “store within a store” boutique concept.

JC Penney Going Forward

Efforts to bring back the “old” JC Penney may not be enough to stem the slide in sales however. In the current annual report for the fiscal year that ended February 2, JC Penney stated “It may take longer than expected or planned to recover from our negative sales trends and operating results, and actual results may be materially less than planned.” This is not good news for Ron Johnson. “There is no assurance that our pricing, branding, store layout, marketing, and merchandising strategies, or any future adjustments to our strategies, will improve our operating results,” the company warned in the March 21 10-K report filed with the Securities and Exchange Commission.

Can JC Penney survive in the retail business? To reduce costs, The Company has already acknowledged cutting 20,000 jobs. According to the New York Post, actual job losses may be much higher, with as many as 43,000 workers losing their job over the last year. As JC Penney struggles to survive, there is one bit of good news. Bondholders have withdrawn a notice of default that would have forced JC Penney to repay the $326 million it owed, unless it immediately took steps to fix alleged violations in the credit agreement that provides security for bondholders.

Although Ron Johnson has acknowledged making mistakes, his efforts to correct them may not be enough. Customers are losing their patience, and abandoning transformation plans that have already begun will ensure significant additional costs. Only time will tell if JC Penney will survive at this point.

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eBay Lowers Seller Fees

Fri, 22 Mar 2013 16:46:35 +0000

Is eBay’s New Fee Structure Good for Sellers, or Just Good for eBay?

In an effort to compete more effectively with Amazon, eBay has made major changes to its fee structure, which the company announced recently in a new 2013 Spring Seller Release. Many sellers had complained in recent years that eBay fees had gotten quite complex and difficult to understand. In an effort to simplify the fee structure and reduce the basic upfront costs for most sellers, eBay will eliminate its category-based, tiered commission fee structure for non-store owners in favor of a flat across-the board commission. Starting May 1, sellers without a store subscription will receive up to 50 free listings per month for fixed price or auction items. When an item sells, sellers will now pay a flat 10 percent final value fee for items less than a maximum value of $250.

Companies with eBay Store Subscriptions will now get up to 2,500 free listings a month, with final value fees determined by category. Most fees under the new plan are anticipated to fall within the 4 to 9 percent range. This new fee structure is good news for sellers with items with a value of under $50. Sellers of more expensive items aren’t quite so lucky. Since eBay is abandoning its current tiered commission schedule in favor of a flat rate plan, the new fee structure will actually result in a fee increase for many high-value items.

For example, Shoes and Accessories currently have a Final Value Fee commission of 10% of the total amount of the sale for up to $50, but after that, the fee drops to 8% of the remaining balance up to $1,000, and then drops to 2% of the remaining balance over $1000. Under the new fees, the fee eBay collects will be a straight 10% of the total sale. This is not good news for online merchants selling high-value items like jewelry and watches and could result in these merchants moving more of their selling efforts to Amazon or other venues.

eBay’s Status Among Online Retailers

eBay spokesman Ryan Moore recently told JCK – Jewelry Industry News that “we believe the new pricing structure makes eBay the most competitively priced commerce platform in the U.S. today.” Many observers think the devil is in the details. While commissions will drop to between 7.2% and 9% on watches and jewelry for some storeowners, there is a $250 cap on these new rates. Rates will actually increase for higher priced items.

Some say the new eBay fee structure will drive away high quality sellers and turn the online auction marketplace into a haven for low-priced junk. Others say that the new simplified fees will bring many more sellers to the marketplace and will be good for everyone. Only time will tell who the ultimate winners will be. One thing is certain though. Online retailing will continue to adapt to new realities and changing conditions. With or without eBay, online retailing will continue to grow.

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The Tiffany Setting: Trademark, or Generic Term?

Thu, 14 Mar 2013 23:26:55 +0000

Has the World’s Favorite Engagement Ring Style
Finally Achieved “Kleenex Status?”When Charles Lewis Tiffany was looking for a ring with more “shine” he ended up inventing the world’s favorite engagement ring style. Before the arrival of the Tiffany setting in 1886, all diamonds were set in a bezel, so only the crown was visible. To expose more of the diamond’s surface and enhance the stone’s sparkle, Tiffany and the company’s gemologists developed a new type of setting using several raised claws designed to hold a diamond securely while exposing much more of the stone for viewing.

This new style of setting, called “the most brilliant ring ever” by fans, quickly became the world’s favorite type of engagement ring. The ubiquitous Tiffany Setting is now so popular that it is used colloquially throughout the jewelry industry to describe any multi-pronged solitaire ring setting. Although many now think the term Tiffany Setting has reached “Kleenex status” and become a generic part of the language, Tiffany & Company does not agree.

When Does A Brand Name Become A Generic Term?

The issue of whether the word “Tiffany” is now a generic term for these popular ring settings has now reached a New York federal judge. Tiffany & Company has sued discount giant Costco for selling counterfeit rings that it claims are falsely advertised as Tiffany. Costco denies the claim, saying that the company never intended to sell “Tiffany rings,” only unbranded rings having a generic Tiffany style setting. “Our rings have no brand name embossed on them, are returnable at Costco, and come with a Costco appraisal,” said a Costco spokesperson. To bolster their claim, Costco has point out that popular books like Wedding Planning for Dummies and Dictionary of Gems and Gemology, as well as advertisements from many retailers already use the term “Tiffany setting” generically.

Tiffany & Company still thinks that the setting invented by company founder Charles Lewis Tiffany is theirs and theirs alone. “When Costco used the Tiffany trademark to refer to goods that had nothing whatsoever to do with Tiffany & Company, they infringed Tiffany’s trademark, while damaging both their own customers and the Tiffany brand,” said company spokeswoman Linda Buckley.

Litigation as a Form of Manipulation

Did Costco customers really think they were buying a Tiffany ring? Or is this just another frivolous lawsuit designed to preserve the stature of the luxury jeweler? Our language is constantly evolving. Many brands and slogans that were once exclusive to a manufacturer have become generic trademarks. Can you imagine not being able to use the term Band Aid, Frisbee, Kitty Litter, Thermos, Kleenex, Ping Pong, Velcro, and Q-Tip? These are all popular brand names that have become generic as a result of their popularity and widespread use. Will the term “Tiffany setting” become the next to join the growing list of names that have simply become part of the language? Costco says the term has already become generic. Tiffany & Company disagrees. Now it’s up to a judge to decide. One thing is certain. This law suit provides for many people another good example of excessive litigation in the United States.

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The Swiss Made Dispute

Thu, 07 Mar 2013 18:32:52 +0000

What Wakes a Swiss Watch “Swiss?”
Even the Swiss Aren’t Sure These DaysThe words Made in Switzerland can almost double the price of a luxury watch. For hundreds of years Switzerland has been regarded as the pinnacle of watchmaking expertise and watch aficionados around the world have been ready and willing to pay significantly more for a timepiece manufactured in Switzerland.

All that may be changing, since current Swiss laws governing what constitutes a Swiss watch are ambiguous at best. Currently, only 50% of the value of a watch’s movement must be made in Switzerland in order to display the very desirable words “Swiss made” on the dial. This means that less critical watch components such as cases, straps and dials can be manufactured anywhere. It has been common practice for decades for many mid-sized Swiss watchmakers to buy these components in Asia, primarily in China. With a strong Swiss franc and much higher labor costs, only a few top luxury brands can afford to manufacture all of their components in Switzerland.

Many Swiss watchmakers say that current weak Swiss laws make it possible for watches produced almost entirely in China to be sold legally under the “Swiss made” label. These manufacturers want to replace current 40-year-old directive, which says at least 50% of the value of the watch movement must be made in Switzerland, with a new law that increases the percentage of Swiss made watch components to 60%. According to Jean-Daniel Pasche, chairman of the Swiss Watch Federation, the current weak law harms Swiss brands as customers learn their timepieces are not entirely Swiss. “Some people already complain their Swiss watches are not as Swiss as they should be,” says Pasche.

Not all Swiss watch manufacturers agree. Ronnie Bernheim, head of the popular Mondaine brand, says a 60% threshold could compel makers of lower-priced Swiss made watches like Mondaine to buy cheaper components abroad. The controversy continues to rage, with watchmakers like Mondaine on one side of the issue and others like 260-year old Vacheron Constantin on the other side.

While some well-known Swiss brands like TAG Heuer now openly admit buying movement parts from Seiko in Japan, the powerful Swiss Watch Federation has become so upset about lax support for higher standards that they recently resigned from the Swiss Business Federation. “By failing to support a 60% minimum rate of Swiss value in a Swiss product, The Swiss Business Federation not only stands in the way of strengthening the protection of the Swiss made label, it also raises the likelihood of it becoming weaker than it is at present,” says a Swiss Watch Federation spokesperson.

Nobody knows where this controversy will end, since there are many different economic interests involved. Mondaine’s Ronnie Bernheim fears that stricter regulations will threaten his business and force him to cut jobs. Julien Marchenoir, brand equity director at Vacheron Constantin says a strong Swiss made label will help keep watchmaking know how in Switzerland. TAG Heuer, on the other hands, doesn’t think using Seiko parts will hurt its Swiss made image at all.

According to the Reuters News Agency, the Swiss parliament is now debating two measures about how to define a Made in Switzerland product. The lower house has argued that 60% of the value must be manufactured in Switzerland for it to bear the “Swiss made” label, while the upper house thinks that 50% is enough. However before this issue is resolved, it’s safe to say that your next watch will probably have at least a few components made in Asia.

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JC Penney Shares Plummet on Poor Quarterly Sales

Tue, 05 Mar 2013 22:18:26 +0000

Who Determines the Future for JC Penney:
Ron Johnson, or His Customers?

Ron Johnson, the former Target executive who helped Steve Jobs create Apple’s wildly successful chain of retail stores, was recruited by activist investor Bill Ackerman in November of 2011 to apply his retail magic to ailing retailer JC Penney. Johnson told investors in January of 2012 that the transformation would take four years. Although corporate turnarounds are always difficult, Ron Johnson is not off to a good start. During the first year of his tenure, JC Penney stock has already declined by more than 60%.

Since his appointment as CEO, Johnson has delivered one disastrous quarter after another. According to Reuters, JC Penney shares dropped as much as 22% in a single day after the retailer announced a 31.7% decline in comparable sales during the important 2012 Winter holiday quarter. This dismal quarterly report follows a long series of similar earnings reports since Johnson began his transformation plan.

Ron Johnson’s Failed Attempt to Transform JCP

Forbes market analyst Steve Schaefer suggests that Ron Johnson’s biggest mistake have been putting too much faith in the rationality of the American consumer. “By eliminating sales, coupons and promotions,” says Schaefer, “Johnson figured the chain could offer competitive, everyday low prices, but he also eliminated the thrill of the chase.” JC Penney customers were not like Apple customers. They were very sensitive to pricing issues and loved the opportunity to buy something at 50% off.

Instead of trying to transform the store, many now think that Ron Johnson made the mistake of trying to transform his customers instead. Johnson was convinced that replacing popular sales events with “everyday low prices” while simultaneously rolling out dozens of branded boutiques within the store for “hip brands” would reverse JC Penney’s declining sales figures. Customers didn’t agree. Now, even staunch Johnson supporter Bill Ackerman concedes that removing the “anchor price” at JC Penney stores was a mistake. “Consumers don’t just know the right value,” says Ackerman. Many analysts now think that customers depended on sales and coupons to provide perceived value.

Although attempting to transform the modern retail environment may be a noble endeavor, it is one that investors seldom have patience for. Johnson may no longer have the time to complete his four-year transformation initiative. S&P has already cut JC Penney’s credit rating and the company is burning through cash reserves at an alarming rate. With JC Penney bonds falling to a record low after this quarter’s dismal earnings report, Bernie Sosnick, an analyst at Gilford Securities, said recently in a telephone interview “You’re getting down to a point where Penney cannot absorb many more significant losses without the damage becoming irreparable.”

The Power of the Consumer

According to watch industry insider and owner of Gevril Group owner Samuel Friedmann, the recent demise of JC Penney has many lessons for the watch industry. “You should never try to second guess your customer,” says Friedmann. “The customer is always right, and it is our job to listen to them and meet their needs.”

Does Ron Johnson still have time to learn this valuable lesson? The clock is already ticking and many think we’ll know the answer by the end of this year. Key investor Bill Ackman, whose hedge fund Pershing Square Capital Management currently owns 17.9% of JC Penney, has already said, “We won’t continue to pour billions into a strategy that’s not working.”

Johnson threw out the playbook when he eliminated cashiers at Apple stores and replaced them with geniuses, specialists, even a concierge. Maybe that’s not the answer for JC Penney however. In a year where Penney saw same-store sales drop by more than 25%, rival Macy’s actually enjoyed a 3.7% increase. This is strong evidence that sales and coupons may be here to stay.

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Tiffany Sends Costco an Expensive Valentine

Wed, 20 Feb 2013 18:03:48 +0000

Tiffany Accuses Costco of Engaging in Selling
Counterfeit Tiffany Engagement RingsOn February 14, 2013 luxury retailer Tiffany and Company filed suit against Costco Wholesale Corporation for engaging in selling counterfeit diamond Tiffany engagement rings at their Huntington Beach, California store. A customer alerted Tiffany that the discount giant had been selling diamond engagement rings clearly marked by in-store signage as “Tiffany.” A subsequent investigation revealed that the rings in question, one marked platinum Tiffany .70 cts. VS2 round and the other marked Tiffany VS2 1 ct. round were not Tiffany rings at all.

It is believed that hundreds, if not thousands, of Costco customers may still think they purchased a genuine Tiffany ring from Costco, since the retailer has apparently been selling different styles of rings for many years that it falsely identified on in-store signage as ‘Tiffany. “This is not the kind of behavior people expect from a company like Costco,” said Tiffany lawyer Jeffrey Mitchell. “Everyone knows that buying something on a street corner or over the Internet from an unknown source is risky. Until now, no one would have thought it could be risky to buy brand name merchandise from Costco as well.”

The Tiffany lawsuit seeks at least $2 million in damages, an injunction against Costco from using the Tiffany name, and asks Costco to “publicly admit its misconduct” to all customers who bought any rings labeled as “Tiffany.”

None of the rings identified at the Huntington Beach store as “Tiffany” were, in fact, genuine Tiffany rings. They were not manufactured by Tiffany. They were not approved by, licensed by, or in any way associated with Tiffany, according to the legal papers filed on Valentine’s Day in New York federal court.

Counterfeit Goods in the Luxury Industry

The luxury goods industry has always had problems with counterfeiting. Usually these counterfeit items are sold on street corners or over the Internet. Never before has a reputable retailer been accused of selling counterfeit goods in their own stores. The lesson for anyone thinking about purchasing luxury items like jewelry or watches is that it is still important to know where the merchandise comes from. It is always safest to buy directly from the manufacturer or one of their authorized representatives. If you don’t buy from an authorized source, you can never be sure of what you are getting.

Every year, luxury “fakes” get harder and harder to detect. That’s why it is more important than ever to buy rings, jewelry, watches, and other luxury items from a reputable source. To view Gevril Group’s list of authorized jewelers and fine watch dealers, visit the company’s Where to Buy web page. This page is not a fake! It’s simply the best way to find an authorized jeweler or watch dealer in your area.

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Apple iWatch Rumors

Thu, 14 Feb 2013 19:03:31 +0000

Is the World Ready for an Apple Watch?

Rumors abound that Apple’s next blockbuster product will be a watch. The concept of a smartwatch isn’t new. There are already several of these enhanced wristwatches on the market. You can already purchase a watch that uses GPS to track your location. Other currently available smartwatches use miniature accelerometers to track your workouts and other physical activity. The problem with these first generation smartwatches is that almost everybody already has a watch. Today’s smartwatches are very specialized and don’t add much functionality to traditional timekeeping.

An Apple iWatch might change all that. The Apple infrastructure already includes thousands of innovative apps that add impressive new functionality to your phone, tablet, and computer. Just imagine if you could access these apps on your wrist. Using Bluetooth and the cloud to communicate with other devices, an Apple iWatch could be a game changer.

Possible Apple iWatch Functions

Some of the most useful applications for this new watch might have nothing to do with timekeeping. Imagine a watch that could eliminate the frustration of passcodes in an office environment. An iWatch could eliminate the necessity of entering your passcode ten or twenty times a day. With the addition of fingerprint recognition on the touchscreen, the watch could easily establish your identity in a variety of situations.

Do you frequently lose your phone? Just use your watch to find it. How about paying for gas just by waving your watch at the pump? Apple’s Siri technology could make it easy to communicate with your watch without using a keyboard. Even traditional timekeeping functions could be improved using smartwatch technology. Your iWatch will probably change time zones automatically for you while you travel. As Apple continues to improve its Passbook payment technology, your watch might even know when you’ve boarded your plane and where you’re going.

What will this amazing new watch look like? Nobody knows for sure, but with Apple’s design expertise, chances are that it will be spectacular. Many people think that an iWatch will incorporate Corning’s new curved glass technology, using a band of flexible curved glass that wraps around your wrist as a display.

When can you expect to see an iWatch on the market? Nobody knows. Many people think it would be wise for Apple to get on the smartwatch bandwagon as soon as possible though. The Bluetooth enabled Pebble smartwatch is already available and Sony already markets a smartwatch that works with Android smartphones. Do you think it’s time for an Apple watch? We may soon find out if Tim Cook agrees with you.

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Inside Basel-Geneva

Fri, 08 Feb 2013 16:23:48 +0000

Bringing Bling to Baselworld,
Glitter to Geneva, and Sophistication to SIHH

Baselworld, The Geneva Time Exhibition, and The Salon International de la Haute Horlogerie are three of the watch, jewelry, and luxury goods industry’s most prestigious and widely attended events. Every year, tens of thousands of watch industry professionals make an annual pilgrimage to these exclusive shows to see the newest timepieces and innovations from the world’s leading brands.

This year, Watchtime editor and noted collector Jeff Kingston has decided to up the ante by showcasing the very best from these prestigious shows in an atmosphere of astonishing opulence and luxury.


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Partnering with the most exclusive 5-star hotels and upscale private clubs in New York, Philadelphia, San Francisco, Chicago and Los Angeles; Jeff’s Inside Basel-Geneva events will provide an unprecedented opportunity for watch industry executives, retailers, and collectors to experience this year’s newest watches in an ultra-exclusive setting.

Lucky participants begin each evening with a 120-minute watch exhibition, showcasing the very best new timepieces for 2013. Premium champagnes selected by expert sommeliers are paired with signature hors d’oeuvres, and accompanied by live music. The watch world’s elite will see and try on the newest and most exciting timepieces long before they reach the stores. Each featured brand will have top executives on hand to answer questions from buyers and enthusiasts.


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This unique opportunity to enjoy fine watches, accompanied by the finest food and wine in the company of industry insiders and fellow enthusiasts just isn’t available anywhere else. For many attendees, this unique event is the highlight of the horological year. In one luxurious evening, Jeff Kingston presents the most exciting new stars from SIHH, Baselworld, and the Geneva Time Exhibition during a 3-course seasonal gourmet dinner that has been created exclusively for each IBG event. Sommeliers will pair top-tier wines with your meal for a truly unique dining experience.

If you’d like to preview the best timepieces of 2013 in an atmosphere of relaxed luxury, it’s time to make your reservations now. Registration for the Inside Basel-Geneva presentations will be available on a first come/first serve basis and the events are expected to sell out even faster than they did last year.

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SIHH and GTE 2013 Exhibitions in Geneva

Wed, 06 Feb 2013 19:15:16 +0000

The Swiss Watch Industry Celebrates Another Record Year in Geneva

Every January, thousands of watch industry professionals descend on Geneva, Switzerland for two of the industry’s most prestigious international exhibitions. From January 20 thru the 24 the Geneva Time Exhibition (GTE) welcomed nearly 6000 watch and media professionals, along with collectors and other watch aficionados to the historic Bâtiment des Forces Motrices in Geneva Centre. Then, from January 21 through the 25 the prestigious Salon International de la Haute Horlogerie (SIHH) hosted over 13,000 visitors from five continents at it 23rd rendezvous held at Palexpo, Geneva.

Salon International de la Haute Horlogerie

The SIHH event is considered by many to be the foremost international gathering for fine watch professionals. This private event for selected retailers, distributors and media representatives showcases the mechanical and aesthetic prowess of 16 of the world most celebrated watchmakers. Exhibitors at this year’s event included A. Lange & Söhne, Audemars Piguet, Baume & Mercier, Cartier, Greubel Forsey, IWC, Jaeger LeCoultre, Montblanc, Officine Panerai, Parmigiani Fleurier, Piaget, Ralph Lauren Watch & Jewelry, Richard Mille, Roger Dubuis, Vacheron Constantin, and Van Cleef & Arpels.


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Art Exhibitions at SIHH


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In accordance with SIHH tradition, an exhibition staged by the Fondation de la Haute Horlogerie presented thirteen unique objects on the theme of time, designed by Alessandro Mendini and made by thirteen master craftsmen. The entire SIHH exhibition is defined by craftsmanship, tradition, and technique, with some of the attending brands showcasing over two centuries of watchmaking experience. Attendees agreed that this was the best show ever and are looking forward to returning to Geneva next year.

Geneva Time Exhibition

Across town, an equally elite crowd was exploring over 600 square meters of timekeeping excellence at the Geneva Time Exhibition’s new Bâtiment des Forces Motrices venue. This year’s event received an unprecedented response from both retailers and the press, and attendees were delighted by the warm, friendly atmosphere at the show. With the enthusiastic support of the world’s independent watchmakers, including popular Gevril Group brand RSW, GTE is now firmly established as a key event on the international watch calendar.


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Attendees to both events agreed that the Swiss watch industry has never been stronger and are looking forward to returning to Geneva in 2014.

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Swatch Group Buys Harry Winston

Tue, 15 Jan 2013 16:51:04 +0000

The Swatch Group Adds Another Jewel to Its Empire

On January 14, 2013 legendary jeweler and luxury watch manufacturer Harry Winston became part of the powerful Swatch Group in a one billion dollar sale. As part of the sale agreement, Harry Winston will net $750 million and The Swatch Group will assume $250 million in Harry Winston pro forma debt.

The Harry Winston name has been synonymous with luxury for decades and has been hailed in film, TV and song. Who could forget the 2000 benefit concert where Elton John sang “Diamonds are a Girl’s Best Friend,” wearing over $3 million in Harry Winston Jewels. To this day, Harry Winston jewels and luxury timepieces are a mainstay at almost every Hollywood Red Carpet event.

Consolidation in the Watch Industry

When The Swatch Group purchased this legendary company, it provided further confirmation of the trend toward consolidation within the watch industry that has been taking place for many years. The Swatch Group, which already owns Breguet, Blancpain, Glashütte Original, Jaquet Droz, Omega, Longines, Rado, Union Glashütte, Tissot, Certina, Mido, Hamilton and many other famous brands, will benefit from the Harry Winston acquisition in a variety of ways.

Not only does Harry Winston have 21 directly owned retail locations worldwide, it also is a major diamond producer with ownership of several diamond mines in Canada’s Northwest Territories. Since Swatch is a major buyer of polished diamonds for its luxury brands, it is already exploring a joint diamond-polishing venture with the Dominion Diamond Corporation, a Harry Winston subsidiary.

Now that Harry Winston has become part of the Swatch Group empire, there are only a few brands like Rolex, Patek Philippe, Fortis, Gevril, Breitling and a handful of others who continue to remain independent. Watch brands that lack the capacity to manufacture their own movements will need alliances with huge conglomerates like Swatch, just to stay in business. It is unclear which company the powerful Swatch Group will buy next. What is certain however is that there are fewer and fewer choices left.

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David Yurman Withdraws From Baselworld

Mon, 07 Jan 2013 16:15:44 +0000

When One of the World’s Leading Jewelry and Watch Brands
Shuns Its Own Industry’s Most Important Trade Fair
You’ve Got to Wonder What Happened

According to Women’s Wear Daily, David Yurman, the renowned purveyor of fine jewelry and luxury watches, will not be participating in the upcoming Baselworld 2013 watch fair that will take place from April 25 thru May 2 in Basel, Switzerland.

Since Baselworld is the premier international trade fair for the world’s watch and jewelry brands, it came as a surprise to many that David Yurman would spurn this major selling event. It’s been the accepted wisdom within the luxury goods industry that you simply must exhibit at Baselworld to succeed.

According to a David Yurman spokesperson, the company prefers to focus on its growing international business this year and will not have a presence at Baselworld 2013. A lot of people will be watching closely to see the implications of such a major change in strategy, especially since Yurman has been a strong supporter of the fair in the past. There is already a lot of speculation about why the company passed on Baselworld this year. After all, if a company with the stature of David Yurman can succeed without the exposure Baselworld provides, maybe others can as well.

Some say that Yurman was simply unhappy with the location of its booth on the showroom floor this spring. Others say the trouble has been brewing for years and that there has always been a tension between Baselworld and Yurman. Whatever the reason, David Yurman has emerged as one of the largest and most widely recognized brands to abandon this prestigious fair.

According to watch industry leader and Gevril Group owner Samuel Friedmann, Baselworld continues to be one of the most important events on the calendar of major timepiece manufacturers. “Baselworld is where the world gets to know your brand,” says Friedmann. “This fair has helped our company grow and gain stature on an international stage, and we will be attending again this spring.” “We will also be watching the reaction to David Yurman’s actions very carefully,” he added.

About Gevril Group

Gevril Group is a regular participant at Baselworld and will be available at Baselworld 2013 to familiarize you with our many watch brands that will exhibit at the show. Email us or call 845-425-9882.

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TJX Companies Acquire Sierra Trading Post

Mon, 31 Dec 2012 22:14:20 +0000

Many See TJX Companies Recent Acquisition of Sierra Trading Post
As an Affirmation that Online Retail is Here to Stay

TJX Companies is a retail powerhouse, with thousands of T.J. Maxx, Marshalls, and HomeGoods locations throughout the United States, Canada, and Europe. When it was announced on December 21 that this off-price apparel and home fashions retail giant had purchased one of the world’s largest off-price Internet retailers, the business world took notice.

Increasingly, successful retailers need a viable e-commerce strategy to survive and prosper in today’s rapidly changing business environment. Customers have quickly grown to love the convenience and economy of buying online and online sales continue to grow year-after-year.

As one of the world’s leading off-price online retailers, Sierra Trading Post shares many characteristics with T.J. Maxx, Marshalls, and HomeGoods stores, offering their customers great values on branded apparel, footwear and home furnishings. According to Carol Meyrowitz, Chief Executive Officer of The TJX Companies, the acquisition of Sierra Trading Post strengthens the opportunities for growth within the TJX family of companies. “Sierra Trading Post has a very loyal customer base, strong vendor relationships, and operates with a low cost structure,” says Meyrowitz. “Their deep Internet retailing experience will serve as a complement to the strong e-commerce team we have already built within the TJX organization.”

The Role of E-Commerce in Today’s Retail Enviroment

Luxury goods retailer Samuel Friedmann, owner of Gevril Group, finds TJX’s acquisition of Sierra Trading Post indicative of the future in retail. “A comprehensive e-commerce strategy is a critical component in any successful retailer’s business plan.” For Friedmann, online retail is here to stay, and it appears that it is here to stay for TJX Companies as well.

Sierra Trading Post, which launched its e-commerce business in 1999, has already grown to over $200 million in annual revenue. As an integral part of the TJX family of companies, this Internet powerhouse will play a key role as the company continues to develop an e-commerce capability that benefits TJX’s value oriented customers. “We are confident that TJX can help grow our new Sierra business profitably through our buying scale, marketing and our other capabilities,” says Carol Meyrowitz. When that happens, everyone benefits.

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Hermès To Make Its Own Watch Movements

Thu, 27 Dec 2012 16:52:17 +0000

At Hermès, if you want to ensure quality and uniqueness, you make it yourself. It’s surprising they waited this long to make their own watch movements.

Hermès silk scarves and leather goods are known around the world for their impeccable quality and timeless beauty. Since the company was founded in 1837, they have rejected mass production and continued to make most of their luxurious products by hand.

When the company launched La Montre Hermès in 1978 and began to produce fine timepieces, they didn’t have the capabilities to make timepieces entirely on their own. Unlike their handmade scarves and handbags, Hermès timepieces were made in partnership with other fine watchmakers like Jaeger-LeCoultre, Vacheron Constantin, Audemars Piguet, and Baume & Mercier. Hermès would buy components from other watchmakers and then assemble the finished product.

This arrangement worked well for many years, but it wasn’t really the way the company liked to operate. With customers from Queen Elizabeth II, to Grace Kelly, Martha Stewart, Madonna and Nicole Kidman willing to wait up to a year for the painstaking handmade quality only Hermès master craftsmen could deliver, the company knew it was time to manufacture its own watch movements as well.

The Need For In-House Manufacturing

To make their own mechanical movements, dials, and watch cases in-house, Hermès invested over 26 million dollars to acquire a stake in movement maker Vaucher Manufacture Fleurier. They also acquired a significant stake in case maker Joseph Erard Holding and bought the Swiss dial maker Natéber outright.

According to Luc Perramond, chief executive of La Montre Hermès, the consolidation of the watch industry has made it imperative for luxury goods companies like Hermès to have their own manufacturing capabilities. “With fewer and fewer independent suppliers,” says Perramond, “there is a danger of losing access to your strategic components in the future if giant suppliers like Swatch Group decide they don’t want to deliver parts to companies like ours.”

Luc Perramond shouldn’t have to worry now, since Hermès can now make its own fine mechanical timepieces in-house. Samuel Friedmann, owner of Gevril Group, agrees that it’s crucial to produce in-house movements. With today’s consolidation in the watch industry the need to produce in-house movements has never been greater.

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Harry Winston Sale Rumors

Tue, 06 Nov 2012 18:51:45 +0000

Is the Harry Winston Watch and Jewelry Business For Sale?

When Reuters and Women’s Wear Daily reported recently that luxury goods powerhouse Harry Winston was looking for buyers for its lucrative watch and jewelry business, it caused a lot of speculation within the watch industry.

There has been a trend towards consolidation within the watch industry for many years, and if Harry Winston were to be purchased by a luxury conglomerate like LVMH or PPR, as it has been rumored, it could confirm the fears of some that a few large companies could control the entire industry.

Consolidation in the Luxury Industry

Premier luxury brands are already controlled by various different conglomerates. Brands such as Zenith, Hublot, TAG Heuer and Bulgari, are controlled by luxury conglomerate LVMH; IWC, Jaeger-LeCoultre, Vacheron Constantin, Panerai and Piaget by Richemont; and Blancpain, Omega, Tissot, Rado, Balmain, Breguet and Hamilton by Swatch Group. In fact Swatch Group has gained so much influence recently, that it makes the movements that power the majority of the world’s timepieces. Only a few brands, like Rolex, Patek Philippe, Fortis, Gevril and Breitling remain truly independent.

While Harry Winston has issued a statement denying that its luxury business was for sale, it has not closed the door completely. Regarding the recent rumors in the press, a Harry Winston spokesperson said, “The company does not intend to make any further public announcements regarding this matter unless it concludes that they are warranted by the circumstances or are required by law.”

This isn’t the first time there has been speculation about the sale of Harry Winston assets. Just last year, it was the giant Swatch Group that was rumored to be eyeing a Harry Winston acquisition. Whatever happens, it is safe to say that the trend toward consolidation will continue.

The Value of In-House Manufacturing

According to Gevril Group owner Samuel Friedmann, as fewer and fewer of the world’s leading brands have the capacity to manufacture their own watch movements, they will need alliances with the conglomerates simply to stay in business. “In this environment, a company that that can manufacture watches completely in-house is more valuable than ever before.” You can probably guess what company Samuel Friedman is talking about.

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Federal Agents Shut Down Scores of Counterfeit Websites

Sun, 15 Jul 2012 23:35:00 +0000

Counterfeit Watches have been a Problem for Centuries
But Now They’re Being Sold through Counterfeit WebsitesForgeries of fine watches have been a serious problem since the eighteenth century, when German watchmakers started producing watches falsely signed with the names of well-known English makers such as George Graham and Eardley Norton. In the nineteenth century, renowned names like Breguet became popular targets for forgers. Today, the problem is worldwide, with an estimated 40 million counterfeit watches coming on the market each year.

What many people may not realize is that one of the most popular ways of selling counterfeit watches today is through the use of counterfeit websites. Some of these fake websites so closely resemble the official websites of famous brands that it is virtually impossible for even the most discerning customer to tell the difference. To make the problem even worse, the replicas being sold on these websites have become so realistic that they are being sold for the full retail price. Customers sometimes don’t even know they have bought a fake until it is time to send their watch in for servicing.

The US Immigration and Customs Enforcement Agency has become increasingly concerned about the growing problem of counterfeit websites. Recently, Federal agents seized and shut down 70 websites that were illegally selling sophisticated counterfeit merchandise, including popular luxury watches. Some of the websites seized in this sting were so sophisticated that they even used SSL certificates, which are generally used to safeguard financial information.

According to watch industry insider and Gevril Group founder Samuel Friedmann, “We must do more to fight this threat. Counterfeit websites should be reported to authorities, and buyers should be vigilant when purchasing a fine timepiece online.

“Make sure you know who you’re buying from,” says Friedmann. “While there are many reputable online retailers, it’s still very important to be careful. The more desirable the timepiece, the more it will be copied.”

The 70 domain names recently seized by Federal agents bring the total number of Internet domains seized by the ICE in the last two years to 837. With a problem of this magnitude, perhaps the safest way to buy a fine timepiece is to go to a trusted quality jeweler or watch store. To view Gevril Group’s list of authorized fine watch dealers, visit the company’s Where to Buy web page. This page is not a fake! It’s simply the best way to find an authorized watch dealer in your area.

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Target and Neiman Marcus Join Forces

Sun, 15 Jul 2012 21:07:39 +0000

Would a Relationship Like the One Recently Established by
Target and Neiman Marcus Work in the Watch Industry?

Everyone is talking about the newly formed partnership between Target and Neiman Marcus. To some, this “odd couple” relationship makes no sense at all, while others praise the new collaboration as a stroke of genius. Whatever your opinion, it’s hard to ignore that this is a whole new way of marketing.

Traditionally, high-end retailers and discounters never went after the same audience. On closer inspection however, collaborations like the one recently established by Target and Neiman Marcus can be a win for both parties. In Target’s case, collaborating with Neiman Marcus on a holiday collection featuring 24 well known designers gives them more big names to feature in their stores. Neiman Marcus, on the other hand, benefits from the additional exposure it gets from being featured in thousand of Target stores.

High-End and Value Watch Brands from a Single Source

According to watch industry insider and Gevril Group founder Samuel Friedmann, these types of “odd couple” relationships make perfect sense for the watch industry. “We have always tried to expose our audience to a wide variety of quality brands and price points,” says Friedmann. The Gevril Group strategy of providing a single source for watch brands at many different price points has worked out well for everyone.

High end, low volume brands gain the exposure they need to maintain their allure, while value oriented, mass-market brands benefit by offering customers a clearly defined choice. It’s a win-win for all. Traditionally, marketers have thought that selling high end products in the wrong place would damage the brand. That thinking is changing however. Marketers now recognize that customers are savvy enough to distinguish between a limited edition timepiece that sells for $5,000 and a mass-market version that sells for $500. What today’s customer’s want is the ability to see all their options and make the final decisions themselves.

Single Source Marketing Works

When Target and Neiman Marcus decided to provide a common venue for the holiday collections of 24 well-known designers, they discovered something that Gevril Group has known all along. Single source marketing works! It works because today’s customers are smart and they like lots of options. Samuel Friedmann doesn’t care whether customers are looking for a rarity or an exceptional value. “My job is meeting customer expectations,” he says. “To make it as easy as possible for customers to find precisely what want.” Target and Neiman Marcus are doing exactly the same thing.

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Gevril Group Couture Show Dazzles Las Vegas

Mon, 18 Jun 2012 23:16:30 +0000

From May 31 thru June 4, Gevril Group was the hot ticket in town, with a glittering show at the spectacular Las Vegas Wynn Hotel.

The glamorous Couture Time watch show made an indelible impression this year on America’s leading independent jewelers and watch retailers. At Couture, Gevril Group showcased many brands the company represents in a single spectacular location, the Wynn Hotel Chambertin Ballroom, during the five-day event. Everyone who attended the show had a front row seat to see the incredible selection of fine timepieces that Gevril Group displayed.

According to Samuel Friedmann, Gevril Group President, the show generated more traffic and interest than initially expected. “We had success with every price point,” Friedmann remarked.

“Couture Time was a big success for Versace Timepieces. The new 2012 collections continue the tradition of Swiss Made excellence and innovative Italian design. This Versace combination of fashion and luxury will bring glamour to many consumers this fall who will find the collections available at a retailer near them.

“Moreover, the new launch of Versus by Versace watches at Couture was a hit with a broad range of retailers. The combination of youthful rock and roll energetic chic styles and accessible retails ($150 to $300) make for an exciting addition to the marketplace,” said Kari Allen, President of Versace Timepieces in the US and Caribbean markets.

“I am very pleased with the results we achieved at the Couture show. It proved to be a very effective environment to meet both clients and prospects and provided a relaxed yet elegant atmosphere, which blended nicely with the Ferragamo luxury lifestyle message. It was extremely well organized and a very positive overall experience,“ added Paul Ziff, President of Ferragamo Timepieces in the US and Caribbean markets.

Gevril

Fortis

Versace

Ferragamo

Eterna

Edox

saint Honoré

Jean d’Eve

Catorex

Louis Erard

GV2

Haurex

Jowissa

Hector H

Police

Ruth Dombroff, Gevril Group’s event planner for the show, was impressed with the genuine interest and activity that the company’s brands generated. “Retailers, watch collectors and Couture judges came by during the show to see what all the buzz was about,” said Dombroff.

Herman Sternberg, Gevril Group Regional Manager, succinctly summed up the event when he said, “A picture may be worth a 1000 words but seeing and touching the real thing is worth way more!” Couture 2012 gave top retailers a unique opportunity to see, touch, and admire the most diverse collections of fine timepieces available today.

Those who attended the show were delighted to see that many of the famous fashion brands they loved were available from Gevril Group. Samuel Friedmann said that Couture 2012 gave many retailers a more complete picture of how the company’s packages, brands, and services could help their businesses grow. Retailers were also very impressed that Gevril Group provides its own after sales service for all the brands it represents.

Las Vegas is known for putting on a good show. This year, Gevril Group was there and proved once and for all that what goes on in Vegas doesn’t necessarily have to stay there: When this year’s Couture Time attendees returned home, they brought back a lasting impression of fabulous brands, tailor made for their markets.

Meccaniche Veloci

RSW

Johan Eric

3H Italia

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Couture and Glen Bowen of Watch Journal Bring You Couture Time 2012 Las Vegas Showcasing the Best Luxury Brands

Tue, 22 May 2012 21:42:34 +0000

Couture Time Las Vegas is where the world’s best luxury watch brands will meet America’s best jewelry retailers. Of course, Gevril Group will be there.

Couture is unrivaled in the jewelry industry. For more than fifteen years, this spectacular annual event has been the place where the world’s best jewelry designers and brands gather to build relationships with their retail partners. This year once again, Couture partners with renowned Watch Journal publisher Glen Bowen to bring you Couture Time showcasing many of the world’s most luxurious watch brands.

With the addition of luxury timepieces to the Couture Show, this essential event now offers top retailers a unique opportunity to find everything they need to make their business successful in a single spectacular location.

From the opening reception on May 31 until festivities end on June 4, the spectacular Wynn Hotel in Las Vegas will attract high-end watch dealers from around the globe who are looking for the most exquisite and unique timepieces available.

According to Paul Ziff, President of Ferragamo Timepieces for the US and Caribbean, Couture is the place to be. “With the recent launch of Ferragamo Timepieces beyond the company owned boutiques,” says Ziff, “Couture provides the perfect venue to introduce our brand and explore new market opportunities. Couture is a luxurious environment that fits well with the Ferragamo lifestyle.”

Samuel Friedmann, founder of Gevril Group and long-time creative force in the watch business, agrees. “Couture Time is the perfect setting to establish new partnerships with serious retailers and build our brands together.”

Gevril Group, which distributes luxury technical Swiss watches, along with some of the world’s most prestigious fashion watches, will use Couture Time to meet watch retailers, to introduce its watch brands, and to provide an overview of its large-scale advertising initiatives in support of retailers and Gevril brands. With a distribution channel that covers more than 1,000 points of sale across all brands, Gevril Group understands the importance of being able to reach successful independent jewelers. “We’re looking to meet retailers who’ve been able to focus on and successfully build their niche in the luxury watch industry,” says Friedmann.

According to Gevril Group Regional Sales Manager Herman Sternberg, “Couture Time provides a wonderful opportunity to explore the newest interpretation of elegance and trendy.” There just isn’t another event quite like Couture. From the Wynn’s fabulous Chambertin 2 Ballroom, a premiere location within Couture, Gevril Group will display some of the world’s most prestigious and interesting timepieces.

For one fabulous week, the Wynn Las Vegas will become an unforgettable destination for over 4,000 jewelry retailers. New friendships will be established. New business relationships will be forged. The best of the best may even win one of the event’s prestigious Couture Design Awards.

Gevril Group will be at Couture Time from start to finish. You can reach Gevril Group by email or by calling 1-866-425-9882. During the event, call Ruth Dombroff at 914-689-4360.

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Gevril Group Opens European Office to Better Serve Customers

Mon, 30 Apr 2012 22:00:54 +0000

Gevril Group has always had a loyal following in Europe. European customers love fine watches and genuinely appreciate the exceptional quality and value that Gevril, GV2, and other fine Gevril Group watch brands represent. To serve our European customers on a more comprehensive and personal basis, Gevril Group is opening a new European office, based in Manchester, United Kingdom.

Gevril Watches

GV2 Watches

Personal Service from a Professional Staff

Heading up Gevril Group’s new European initiative will be Jacob Dym and Ben Rose. Jacob and Ben both grew up in Zurich Switzerland, and have practically spent their entire lives working in the watch industry. Jacob, who will serve as Director of Gevril Group Europa, the new European operation, comes from a family of Swiss jewelers and diamond wholesalers, and is a third generation watch professional.

His partner Ben became interested in fine timepieces after receiving an Omega from his grandfather as a 13th birthday present. Ben immediately fell in love with the watch and has been buying and selling watches ever since. Jacob and Ben have been friends for many years. Thay have learned much of what they know today walking up and down the famous Bahnhofstrasse in Zurich studying the latest watch models.

According to Gevril Group founder Samuel Friedmann, Jacob Dym and Ben Rose will be genuine assets to Gevril Group, helping the company establish a much more productive and personal relationship with its European customers. Gevril Group Europa will take over the European distribution of the Gevril Group brands and will provide many growth opportunities in the years ahead.

Gevril History

Gevril Group’s new European presence brings the brand full circle. The company started making fine watches in Switzerland over 265 years ago, and founder Jacques Gevril is still recognized as an important contributor to the history of Swiss watchmaking, earning the Gevril name the recognition and prestige it has today. Since Samuel Friedmann acquired the brand in 2001, Gevril has developed a strong following in the American market. Now it’s time to return to our roots. Through Gevril Group Europa, we will offer a growing selection of fine timepieces at a variety of price points to a world of watch lovers who appreciate quality and exceptional value.

Gevril Group Europa

Gevril Group manufactures and sells fine timepieces under the Gevril and GV2 names. Gevril Group Europa is the European distributor of Gevril and GV2, as well as Swiss Military, Johan Eric, Giulio Romano, and Rüdiger. With the creation of the Gevril Group Europa office, the company can now provide the same high level of personal and professional service to European consumers that American watch enthusiasts already enjoy.

Swiss Military Watches

Johan Eric Watches

Giulio Romano Watches

Contact Gevril Group Europa

You can reach Jacob Dym and Ben Rose through the contact information on the Gevril Group Europa website.

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Exclusive Jewelry and Watch Show comes to London’s Hurlingham Club

Wed, 16 Nov 2011 02:52:18 +0000