H. Moser: The Luxury of One Watch, One Watchmaker

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June 26 (Bloomberg) -- Edouard Meylan, Chief Executive Officer at H. Moser, discusses how his company is providing luxury Swiss watches in spite of pressure from wearable technology, the impact of government clampdowns in the Asian market and offers his outlook for global demand and production. He speaks in today’s “Global Outlook” on “The Pulse.”

Collection that many of your clients already have.

Beyond that, it fills a different need.

A smart watch, you use it to record your pulse, to measure certain things.

If i go running, i am not going to wear my moser mechanical watch.

It is a different segment.

So it is not a threat.

Definitely not.

We produce $1000 a year.

Maybe for entry-level lot -- 100 watches a year.

Maybe for entry-level watchmakers.

The price tag, $50,000, how do you set your brand apart?

We want to differentiate ourselves.

We are independent.

We produce a very limited number of watches.

Only 1000 a year.

Quite rare.

To differentiate us -- from many of those big brands, it is all about creating an image.

It is about the product.

That is what our clients appreciate.

The story in china right now, the authorities are clamping down on spending.

They are clamping down on corruption, on everything that affects your market.

What is going on?

Is it going to be sustained?

When i talk to my partners in asia, some say six months, some say 24 months.

Every time you have new government, that happens.

From our perspective, it doesn't have a big impact.

People buy our product because they like it.

The brands that are impacted our people who buy the product as a gift.

We don't buy a moser watch because it says moser on it.

It is because it is the most beautiful watch.

You said you are not that well known but you are in russia.

The brand has a great history in russia.

Moser used to fix the watches of the cs=zars.

Russia is interesting because of the history.

Russians by our watches everywhere.

Again, we produce 1000 a year.

We sell pretty much to everybody.

It is not about the national identity of our clients.

It is somebody very self-confident, somebody who want something special.

They care about the value and having a beautiful product.

Your biggest growth market?

Europe.

Europe?

You are selling them in europe or they are staying here?

Both.

I would say maybe 30% go elsewhere.

Germany and switzerland are big markets for us.

That is where we are well known.

Do you sell them online?

We don't. would you ever sell them online?

Maybe.

Would you buy something online that cost this much money?

It changes the nature of the retail experience.

Is the shopfront just a kind of, go in and try it on?

The best experience for us is when the customers come to our office.

We have amazing watchmakers who stop and explain.

One watch, one watchmaker.

It doesn't actually show a picture of the watch.

It is so rare that you can't even get one to take a photo of.

We brought this out here in london.

They help us develop a concept that is different.

We don't have the budget of the others.

We had to do a statement.

In a campaign -- it sends the message, the scarcity factor.

Who do you compete with?

Am i making a decision between one watch and another watch or am i making a decision about wanting one of your watches or a new ferrarui?

Somebody who buys the watch is usually somebody who is looking for a great watch.

It is a question about, what am i really looking for?

Where do you see the competition?

[indiscernible] those kind of products.

Fine mechanics, hand finishing.

You are making 1000 now.

Tell us about the growth plans.

Based on our business plan, business plans can always change but i think next year is about 1300 watches will be profitable.

My goal is to reach around 3000. we want to keep it rare.

We want this to be special.

Big brands are about marketing.

We want true value.

I want to have one watchmaker for every single watch.

The luxury industry is at the moment driven by aggregation.

Brands like lvmh are hoovering up -- sucking in small brands.

What is your view of that?

Is their ability to spend money on marketing?

They have great channels, great experience.

Is there an advantage in that?

I think in every problem there is an opportunity.

By them being very big, they put pressure on others.

I think customers and retailers tend to realize that.

They are looking for a true partner.

We are family-based and most of our partners are also families.

They want to work with us on a long-term basis.

That is a great opportunity for us because we grow together.

I think consumers start to realize that brands spend more money on marketing than sometimes developing products.

Do you want to pay for the campaign you see everywhere or for the product that you see on your wrist?

I think when you buy a moser, you have value there.

Customers start to understand that.

Nice to see you.

Thanks for standing by.

The ceo of h. moser.

Coming up, we are going to talk about housing and putting the brakes on britain's housing market.

What does mark carney have in his arsenal?

We will tell you that next.

?

This text has been automatically generated. It may not be 100% accurate.

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