The domestic watch market is experiencing a downturn. Consumers are becoming more sensible and the market bubble is bursting. Faced with such a ‘horrible’ market situation, Parmigiani is a new brand entering the Chinese market. Did not catch up with the good times. However, in the eyes of Shan Wei, its managing director of the Asia-Pacific region, the Chinese market is maturing. When consumers value watch technology instead of simply obsessed with LOGO, the Chinese watch market has a stronger vitality.
The domestic watch market is gradually entering rational consumption
Reporter: The latest export data of the Swiss Watch Federation showed that the export value of exports from Switzerland to the Chinese mainland and Hong Kong continued to show a double decline. Since the end of last year, the domestic watch market has entered a weak period. How do you view the domestic watch market? Status and future development trends?
Single micro: After experiencing a rapid growth of 20% -30% each year, the domestic watch market experienced a dilemma of about 20% decline in retail last year. This is a big blow for many brands, but this is Market development must go through a process. Only after going through these markets can it mature and steadily develop. In fact, this is not blind optimism, but just a frank hold across the entire Chinese market. China’s market is so huge, with a population of over a billion people. Although big brands such as Beijing and Shanghai have already settled in, the market space is still very large, and there is still room for new brands to survive and develop. Many people in the second and third tier cities and even the fourth tier cities have experienced the primitive accumulation of wealth. The wealth has reached a certain level. These two years are the time when they have released their desire to buy. Therefore, although the Chinese market is affected by macro-control policies, the future The development prospect and market potential are still very huge.
Correspondent: The luxury market has experienced rapid development in China, and the perception of domestic consumers has also changed. From blindly pursuing logos to starting to focus on core issues such as brand value and quality. What do you think of the changes in domestic consumer patterns and consumption concepts?
Dan Wei: In the past few years, gift purchases have accounted for half of watch consumption, and some brands even account for 70%. This consumption purpose has led consumers to recognize only the brand, and have awareness and demand for product quality and other aspects. Lower. However, with the development of the watch self-use market, the market characteristics of rational consumption have begun to show. The consumption concept of the newly rich has also changed, and they have begun to think about how to enjoy life after having wealth, no longer like the state of tending to blind consumption in the 1990s. For example, many people say that a certain brand is good, and rich people buy it. This kind of purchase lacks a basic understanding of high-end watches and brands. But to this day, more and more people with spending power have begun to realize that in addition to the big names first known by the Chinese, there are actually many brands adhering to the value of high-end watches, and these brands are more suitable for themselves. As consumers increase their brand awareness, the purchase list will change, which is a good thing for a truly powerful brand.
的 The era of looking at performance and not serving is over
Reporter: With the rapid development of the domestic watch market, the problems in the watch market have become increasingly prominent. The maintenance period of high-end watches for several months or even years has become a criticism of watch after-sales service. What does service mean for the domestic watch market? Do Parmigiani have any plans for after-sales service?
Single micro: Although the watch brand has made a lot of money in the domestic market, the existing problems can not be ignored, and the service problems that have been repeatedly exposed in recent years have always greatly reduced the brand image. I personally believe that aftermarket Service is a problem faced by every brand. For example, a watch with hundreds of thousands of problems, the domestic service center needs to take to Switzerland to repair, after almost a year of waiting time, this is unacceptable to many people. This shopping experience will directly affect consumers’ second purchases. There is also a phenomenon in the past two years. The proportion of domestic consumers buying watches abroad is getting higher and higher. Last year, 80% of the watches repaired by Parmigiani in Hong Kong and the Mainland were hooked overseas. Comparable to abroad. At present, we have started to plan to cooperate with a professional watch repair company and arrange their technicians to study in our factory. This will not only greatly shorten the waiting time for repairs, but also guarantee the quality of repairs.
Reporter: Blindly opening and expanding stores, actively deploying second- and third-tier cities, and hiring domestic image ambassadors. The domestic brand’s marketing strategy has fallen into the weird circle of “if there is similarity, it is pure coincidence”. Brands fighting over in the domestic market?
Shanwei: Consumers have a strong learning ability, and their recognition of whether they are really good brands has been improved. Brands that use the same market strategy as competing products, or brands that do not have a competitive advantage in terms of quality, will struggle to survive. Even brands that have entered the Chinese market also face such problems. In fact, there are many brands with excellent products and brands that have not improved in the market. This has a great relationship with the entire company’s marketing team and management team. But in other words, if the person is very good, the team is very strong, but the product is not good, consumers will still not buy it. The domestic market is no longer like in previous years. As long as there is hype, it can occupy a place in the market, and the level of consumers will increase. , Forcing the market to start shuffling, powerful brands will naturally remain, and companies that once looked beautiful but lack hard power will eventually be eliminated by the market and consumers.
The pursuit of high-end watches ‘latecomers’
Reporter: Compared with other high-end watch brands, Parmigiani has been long overdue from the brand history and the time to enter the Chinese market. What do you think is the difficulty for a new brand to develop in the Chinese market?
Shanwei: As a true luxury brand, in addition to good products, it will take time to increase awareness and awareness. It has been two years since Parmigiani came to China, and now we need patience. In the luxury watch industry, many end consumers value the fame of watches, and consumers who design, craftsmanship, etc. do not value them. Brands need time to cultivate consumers how to truly understand the meaning and core value of watches. Cultivating and educating consumers does have some difficulties for us now, but the industry insiders and distributors of China’s high-end watch circles have been completely different from those in the past two years. When I first entered the industry ten years ago, the depth of knowledge and the breadth of knowledge in haute horlogeries improved beyond my imagination.
Reporter: Facing the above difficulties, do you and your team have any specific strategies?
Shanwei: I understand that opening a store is just an operation that meets the needs of the market. It is not a big strategy. I also hope that consumers can truly understand the brand, such as the art of restoration by Parmigiani. This established Parmigiani’s position as a pyramid apex in fine watchmaking. Brands without foundations cannot develop. This foundation may be history or craftsmanship. Now our task is to tell consumers as much as possible the true value of the brand-the repair process. These are the things that brands will not forget, and are the reasons for brands to take root in consumers.