Ecomdigest Watches Newsletter - 09.19.2024

PLUS: Richemont Chairman Calls for Production Cuts Amid Watch Industry Slowdown

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Ecomdigest
September 19, 2024 • Estimated Reading Time: 7 minutes

Specialty Bites 🍪

Zenith's Defy Skyline White Ceramic Skeleton watch features a 41mm octagonal case and dodecagonal bezel in white technical ceramics. Highlighting an intense blue openwork face, it boasts a self-winding El Primero 3620 SK calibre with a 55-hour reserve. Water-resistant to 100m, it's versatile for year-round wear.

So, Richemont's chairman, Johann Rupert, has dropped a bombshell: luxury watchmakers need to hit the brakes on production. Why? Because the once-booming demand for pricey wrist candy has taken a nosedive. Blame it on the sluggish sales in China and Hong Kong. Rupert, the South African billionaire, told shareholders that chasing volume is a fool's errand. He even gave a nod to private competitors like Rolex and Patek Philippe for showing some restraint.

Here’s the key point: while Richemont is required to report to shareholders, private watchmakers are exempt from that obligation. Swiss watch exports have declined this year following three consecutive years of record highs. With pandemic savings dwindling and inflation rising, consumers are becoming more cautious with their spending. Additionally, the strong Swiss franc is driving up prices and putting pressure on profits.

Adding to the challenge, some watchmakers are utilizing a Swiss government program to furlough employees and reduce production without resorting to layoffs. It’s an unexpected development. If you're considering purchasing a luxury watch, it might be wise to wait, as the industry is facing some turbulence.

Phillips Geneva's Fall 2024 auction features 70 lots, including rare and unique timepieces like the Alain Silberstein Marine Perpetual Calendar and the Seiko Izul Chronograph. Highlights include the Parmigiani Ovale Pantographe and the Jaeger-LeCoultre Reverso Paula Rego.

Before you splurge on that shiny new watch, take a moment to ask yourself some crucial questions. Watch collecting isn't a sprint; it's a marathon where your tastes and perspectives will evolve. First, can you really afford it? If you're thinking of eating pasta for a month or skipping nights out to save up, maybe reconsider. Monthly payments might seem tempting, but they can become a nightmare if unexpected expenses arise. Always factor in taxes and buyer's premiums, especially at high-profile auctions like Sotheby's or Phillips.

Next, do you genuinely love the watch, or are you just seduced by its limited-edition status? Buying something rare just for the sake of it can lead to regret if it ends up gathering dust in your watch box. Consider how it fits into your collection and your daily wear rotation.

Also, think about the literal and lifestyle fit. Try the watch on in person if possible, or at least know your wrist's lug-to-lug measurement limits. A watch might look great in photos but feel awkward on your wrist. Lastly, if you're eyeing a vintage piece, be prepared for the responsibilities that come with it, like expensive servicing and potential fragility.

The Christopher Ward C60 Trident Lumire is a standout Swiss dive watch, emphasising luminescence and technical specs. With a titanium case, 300m water resistance, and innovative lume, it offers comfort and durability. Powered by the COSC-certified Sellita SW300-1, it’s available for $1,975 (rubber strap) or $2,390 (titanium bracelet).

Performance Platters 🍽️

Fospha's latest report, "The State of E-Commerce H2 2024", reveals crucial trends that will shape your marketing strategy. What's inside:

📱 How the major platforms' KPIs have trended in 2024, and where you should be investing. 

🚀 How to access Paid Social's huge scaling potential. 

✨ The most effective Google channel of 2024.

🎯 Full-funnel strategies for Meta, TikTok and Snapchat

Let's break down the platform-specific insights: 

  • TikTok: Emerging as a powerhouse for efficient new customer acquisition 

  • Meta: Maintaining strong performance with competitive CAC 

  • Snapchat: Experiencing rapid growth, particularly effective during peak shopping periods 

"These findings underscore how impactful platforms like Meta, TikTok and Snapchat continue to be for driving sales - yet how underinvested they remain. It's incredible to see that brands can triple spend in Paid Social before becoming unprofitable. Success now lies in diversifying across the entire funnel, understanding the nuances of each platform, and continuously optimizing to unlock more scaling potential." 

Jamie Bolton, VP Growth at Fospha

WPP and Coca-Cola topped the 2024 Cannes Lions creative charts, with Coca-Cola winning 17 awards. WPP was named Creative Company of the Year. Heineken and Apple followed in the rankings. The United States was the most creative country. The LIONS Creativity Report highlights impactful creativity driving growth.

Shopify partners with Roblox to integrate in-game shopping, allowing brands to sell physical items directly within the game. This collaboration targets Roblox's 80 million daily users, with a full launch in 2025. Shopify's president highlights the endless possibilities, emphasizing the future of immersive commerce in the digital world.

Ad spend in 2024 is set to rise, driven by retail media, value-based messaging, political ads, and CTV monetization. The IAB projects an 11.8% increase, with retail media leading due to high CPG and beauty spend. AI in search could further boost Q4 advertising.

Ecomdigest is a Contentive publication in the DTC Ecommerce division